Mobile Application Downloads to Reach Five Billion by 2014

New York based research firm ABI Research says that the number of mobile applications downloaded by mobile phone users is expected to reach five billion by 2014. It says that the surge in smart phone sales and the increase in the number of mobile app stores are the reasons why there has been a sharp increase in the number of apps downloaded in the last few years.

The iPhone, according to ABI Research, is still the major player in the mobile app market. However, its market share is expected to reduce considerably over the next few years due to the rise of Google Android. Android currently has an 11% market share. Due to its increasing popularity and Apple’s shrinking market share, Android’s market share is expected to increase from 11% to 23% by 2014.

The reason behind Android’s growth in the mobile application market is not hard to fathom. As of now, 14 phones run the Android OS and the number is expected to increase sharply this year due to the introduction of new Android based phones. Also, the response for free mobile apps from Google, Google Maps being a fine example, has been great so far. Since Google is expected to come up with more such free apps and ad-funded apps, it is safe to assume that the number of mobile apps downloaded by consumers will increase in the coming years.

ABI Research has also made another observation. It says that even though the number of mobile apps downloaded by consumers is expected to rise sharply, it may not reflect positively on the revenue chart. It says that the proliferation of free ad-funded apps might make people reluctant to buy paid mobile apps. It is quite a bold prediction given the fact that the idea of ad-funded apps is still in its nascent stage.

What I believe is that there is enough space for both ad-funded apps and paid apps. While the demand for free ad-funded apps is likely to increase significantly, the demand for paid apps, particularly business centric mobile apps, will not disappear completely, as there are quite a few people who do not like the idea of a mobile app loaded with ads. So, I predict a mobile ecosystem where ad-funded apps and paid apps can coexist without any problems. What do you think? I am interested in hearing different opinions.

Categories: Cell Phone Advertising, All things mobile phones.

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Mobile applications for Google Android phone a hit among users - says Google

Here is some happy news from the Google camp. The mobile applications for the recently released Android phone – T-Mobile G1 – are a hit among consumers.

Google executives have stated that on an average, a T-Mobile G1 user downloads 14 mobile applications. There are around 200 mobile apps available in the Android Marketplace right now and almost all of them have been well received by mobile users. Google is very happy with how things have gone with the Android phone.

As of now, the mobile apps in Android Marketplace are free. However, Google is planning to let developers charge for their apps soon. Once it happens, 70% of the revenue generated will to go the developers, a small percentage of the revenue will be used to cover the transaction charges, and the rest of the amount will go to the mobile operators. None of the mobile operators has raised any questions about this revenue sharing model so far, so we can safely assume that they are fine with this arrangement.

Google is also happy about the use of mobile data on the T-Mobile G1. Consumers have been very active so far and use various Google services like the search facility and Google Maps and a variety of third party services as well. Google has stated, without revealing the actual numbers, that there has been a ‘huge spike’ in consumer activity in the last month or so.

So, things are hunky-dory at the moment for Google. It will be interesting to see how consumers react once developers start charging for the software. What do you say?

Categories: Google, All things mobile phones.

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Funambol to serve mobile ads in its portal

Open source mobile messaging software producer Funambol recently announced that it will serve mobile ads in its online portal myFUNAMBOL. For those of you that don’t know Funambol, here is a small intro.

Funambol is famous for its mobile 2.0 messaging software which is considered probably the best push email solution for mobile phones today. Mobile enthusiasts rate Funambol better than Apple MobileMe and the sync apps available for Blackberry. It supports over a billion devices including iPhone, Android, Blackberry, and Windows Mobile.

Now, back to the news. Funambol says the ads served will not be overtly prominent or intrusive in nature. Mobile users will find ads in their inbox and message viewing screens. Funambol believes that this is perhaps the best idea to monetize its service in the most effective manner. There are two reasons for this.

First, mobile users absolutely love Funambol. It is really easy to use and it is one of the best push email apps for mobile phone today. So, they won’t mind a few ads here and there as long as it doesn’t bring down the quality of user experience.

Second, finding ads in inbox is not at all uncommon. Gmail has been doing it ever since its inception and people have had no problem with that whatsoever. So, similarly, they won’t find the ads in myFUNAMBOL intrusive or disturbing.

In my opinion, this is a welcome move. As Funambol is an open source project, they need to monetize it one way or the other to stay in the competition. And as long as people find their service useful, I think they probably won’t mind these ads.

What do you think? Will you say okay to a few ads in your inbox if you get to use such open source mobile apps for free or at a very low cost? Share your thoughts.

Categories: Cell Phone Advertising, All things mobile phones.

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Apple to release its 3G iPhone on July 11

The long wait is over folks. The much-awaited 3G iPhone from Apple will be out on July 11. There is a hefty price cut as well, as the price has been slashed by $200. You can get the 8GB model for $199 and the 16GB model for $299. If you’re one of those early birds who paid $499 for your iPhone, well; I can understand your plight.

Before I get into the details, it’s worth remembering the ‘cause’ which triggered this effect. When Apple released its hugely anticipated iPhone, the response was overwhelming. However, soon there was a complaint that the iPhone was a tad too slow when it comes to browsing the internet. This was a major letdown and Apple had to do something about it. Out came the idea for a next generation iPhone which will offer superior mobile web experience. And now, here we have it.

Alright; back to the current scenario. Steve Jobs has promised that this 3G iPhone will certainly be ‘the phone’ which will stand out from the rest when it comes to mobile browsing and mobile web experience. He also promises that this phone will be more than 35% faster than its rival Nokia N95 when it comes to mobile web. This has made a lot of people sit back and take notice. Also, Apple thinks it can crack the working professionals/executives segment, which is a major market for Blackberry, with its 3G iPhone.

Another interesting thing about this 3G iPhone is the number of mobile apps it boasts of.

1. Mobile Me, which stores your emails, contacts, calendars, and other details in a server called ‘cloud’ and forwards your emails to your PC, Mac, iPod Touch, or iPhone. Whatever change you make in one device will get updated automatically in the other devices.

2. Cow Terry, a music making software, which lets you create songs on the go in your iPhone.

3. A mobile blogging software from TypePad

4. A social networking service from Loopt

5. An app from MLB.com which brings you live scorecard from major league games.

Overall, I would say the 3G iPhone is good. And it’s way better than the current version of iPhone that we’re using now. Most importantly, at $299, I think it’s quite a bargain. So, have you decided to buy it on July 11 or what?

Categories: Apple iPhone, All things mobile phones, Mobile Web.

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