The US smartphone app market will be worth $4.2bn by 2013, more than 10 times the $343m it is expected to bring in this year, according to new research. The study, from market researcher Yankee Group, predicts that increasing smartphone adoption and rising app prices will drive the strong growth. Report author Carl Howe said: “Just two words describe the market to come: gold rush.” The study forecasts that the number of US smartphone users will quadruple from 40m to 160m over the next four years, accompanied by a growth in app downloads to 7bn.
At the same time the average price of an app is set to increase from USD1.95 to USD2.37, with paid apps accounting for a quarter of all apps downloaded.
Apps have been around for years,” says Howe. “But app stores have created mass-market products with million-dollar revenue streams attached. Every mobile software developer could be the next Bill Gates for smartphones, but only if they bet on the platforms with the right reach and fit for their application.”
Market leader Apple has seen its popular App Store record more than 1.5bn downloads worldwide in the last year. Howe suggests that app stores will make $1.3bn by 2013, while developers could pocket up to $2.9bn.