iPhone Holding Dominance in the Mobile Application Development Sector for the Year 2010

The IHS Screen Digest reveals the growth of mobile applications that generated an increased profit in 2010 by 160.2 percent to reach the figure of $2.2 billion. In 2009 the revenue was reported to be around $828 million. iPhone App store ranked first generating $1.8 billion revenue showing an increased activity in the iPhone application development sector. Games rank as the most popular category with 52.2 revenue generation that goes to its credit.

Newer smart phones with convincing features and operating systems have emerged on the market to give a tough time to Apple’s iPhone. It is the iPhone’s App store that is giving it a lead when it comes to comparisons for mobile application development getting what counts in the end and that is revenue from users.

Although many rivals were heard to be competing strong but App store managed to hold its dominance where mobile applications are concerned. However it must be seen that the revenue of App store also includes revenue generated from the introduction of iPad. Although the share might be a small one but the iPad Apps are expensive as compared to iPhone apps.

Over the years Apple has earned the trust of the consumers. The brand is a trusted name and consumers feel comfortable using its simple billing service via iTunes. Jack Kent, IHS mobile media analyst states “Apple has been able to maintain advantage by leveraging its tightly controlled ecosystem”

Google’s Android is trying to catch up but the success of iPhone App store stands unmatched for the year 2010. Android’s revenue was reported to be 861.5 perecent.

The way the mobile market is growing it is predicted that the year 2011 would be no different in fact it would be more productive for mobile application industry. It is estimated that revenue might grow to $3.9 billion that is a rise of 81.5 percent.

According to Kent freemium business model might just prove to be the key factor responsible for growth. The model is proving to be quite popular with developers. The model offers the basic application for free with the basic functionality available but the charges are for the premium features. It is proving to be a successful model and more and more developers are focusing to offer applications for free and make money via the in-app purchases. For iPhone applications development also freemium model is proving to be gaining popularity with almost 30 percent of the top grossing iPhone application out of 100 being the ones that make their money from in app purchases.

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