Mobile app store downloads to nearly double in 2013

Mobile app stores will see annual downloads reach 102 billion in 2013, up from 64 billion in 2012, according to Gartner.
 Total revenue in 2013 will reach $26 billion, up from $18 billion. Free apps will account for 91 per cent of total downloads in 2013, and Gartner expects in-app purchases (IAPs) will account for 48 per cent of all store revenue by 2017, up from 11 per cent. IAP purchases will drive 17 per cent of the store revenue in 2013 and increase to 48 per cent in 2017. 

As with downloads, IAP is expected to have strong growth in 2013 and 2014 and slow in later years. This is due to smart devices reaching more mass-market consumers whose willingness and/or affordability to spend on IAPs is lower than early adopters.
However, Gartner expects IAP to become a major monetisation method for app stores and developers. Research shows that IAP contributes to a significant amount of Apple's App Store revenue from iPhones worldwide. While other platforms have not reached the same levels as the iPhone, the analysts project they will also see IAP contributions increase in the future.

Smartphone sales exceed feature phones for first time in second quarter

Unit sales of smartphones surpassed feature phone sales for the first time in the second quarter of 2013, according to Gartner.

It estimates the smartphone market grew 46.5 per cent from a year earlier to 225 million units or 51.8 per cent of the total handset market. Feature phone sales were down by 21 per cent year-on-year to 210 million units. The regions Asia/Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1 per cent, 55.7 per cent and 31.6 per cent respectively.

Gartner maintained its forecast for total mobile phone sales of 1.82 billion units this year, supported by new product launches around year-end and the continued fall in smartphone prices. 

Samsung maintained its No 1 position in the global smartphone market in second quarter, and its share increased to 31.7 per cent from 29.7 per cent in the second quarter of 2012. Apple's share fell over the same period to 14.2 per cent from 18.8 per cent, whereas Number-three LG rose to 5.1 per cent from 3.8 per cent a year ago, Lenovo grew to 4.7 per cent from 2.8 per cent, and ZTE had 4.3 per cent of the smartphone market.

In terms of mobile operating systems, Google's Android strengthened its lead, accounting for 79 per cent of all smartphones shipped in the quarter, it said, adding that Apple's iOS was in second place with 14.2 per cent, and Microsoft's Windows moved into third place, growing its share to 3.3 per cent from 2.6 per cent a year ago. “BlackBerry fell to fourth place with 2.7 per cent of the market, half its share of a year earlier.”

Social media revenue to hit $10.3 billion

Worldwide social media revenue is on track to reach $10.3 billion this year, a 41.4 per cent increase from 2010 revenue of $7.3 billion, according to a study by Gartner.
Worldwide social media revenue is forecast for consistent growth with 2012 revenue totalling $14.9 billion, and the market is projected to reach $29.1 billion in 2015.
Social media advertising revenue is forecast to total $5.5 billion this year, and grow to $8.2 billion in 2012. Advertising revenue includes display advertising and digital video commercials on any device including PCs, mobile and media tablets.
Social gaming revenue is on pace to reach $3.2 billion this year and grow to $4.5 billion in 2012. Social gaming includes revenue that social networking sites earn directly from users who play games that are developed in-house, and the revenue earned by allowing game developers/publishers to use their sites as a platform to let users play with friends on the network.
It includes revenue earned from 'virtual wallets' within games — such as when users spend virtual money on in-game items like swords or tanks, or to create virtual armies. Social media subscription revenue is forecast to reach $236 million this year and total $313 million in 2012. Few social sites charge subscription revenue, mostly for premium services.
Some professional sites like LinkedIn, Xing in Germany and Vladeo in France, charge a subscription fee from their users for enhanced services, like an expanded profile view.