Overview of the Apps Industry - Research Paper Example

Overview of the Apps Industry The mobile application store market is directly linked with the penetration and adoption of smartphones worldwide. Mobile apps run on smartphones which are Internet-enabled cell phones that support mobile applications for instance internet features. Although the industry showed tremendous growth in recent years, it has great potential yet to be discovered. (Ahmad 118). Recently it has become a mass market phenomenon due to the successful attempts of Apple in the mass consumer market. The developed economies are adopting this cutting edge technology and infrastructure swiftly which is the reason behind its spurred growth. The apps business is well beyond entertainment and gaming apps. It is a flourishing software industry which unveils opportunities for technology seekers who introduced innovation blended with the Internet. The apps stores, particularly Apple Stores, Nokia Ovi and Android markets, are gaining popularity among users. So, the word “apps” is no longer limited to Smartphones. Various Internet giants like Google and Microsoft have initiated apps stores for their offerings. Apps industry is the result of collaboration between third party developers and companies for designing, enhancing and trading apps via different sources like smartphones, tablets, social media platforms and others linked with web. It has tremendous growth potential which can be unleashed using innovation and continuous improvement in features (Stevens 58-74). It can be rightly said that Apps business will set the foundation for Internet’s future model. Apple’s Apps store became an inspiration for other players in the smartphone industry and was followed by virtual markets like Nokia Ovi Store, Google Android market and Samsung apps (Appling and Pappalardo, 2010). Even outside the smartphone platform, the biggest online retailer Amazon is influenced by the progress of apps store and might introduce it for its Kindle development. APPS INDUSTRY HISTORY: The origin of smartphone industry initiated from 1993 with the invention of IBM Simon. However, 2007 marks the advent of Apple iPhone which gave rise to the smartphone apps market, commonly referred to as “apps”. The Apple smartphone was a symbol of aesthetics which combined touch screen display with web browsing in one package. Apps industry has developed over the years beyond smartphones and the mobile apps industry is highly fragmented among several players. The apps stores owned by OEMs by a combination of product, platform and store include Apple apps store and the like. Google’s Android and Microsoft market are the platform providers used on third party handsets like HTC and Samsung (Allen, Graupera, and Lundrigan 57). There is a difference seen in market dominance of the brands in various countries. For example, US market resists in adopting Nokia system so it was unable to attain dominance in the region unlike the world market. The prominent carriers are AT&T, Sprint Nextel and Verizon whose integration with the hardware manufacturers is very crucial. The carriers set sales conditions for hardware vendors. Traditionally, the telecommunication carriers subsidized smartphones in order to drive demand from consumers who, in return, sign a contract. This provided a great insight that consumers are eager to purchase expensive high tech machines on lower prices. The collaboration can result in sales rise for hardware manufacturers as well as subscription contracts for the carriers. PERFORMANCE TRENDS: The apps market predominantly consists of four major players: Apple, Blackberry, Nokia Ovi and Android. Since the apps market has emerged, more than 300,000 apps have been developed and downloaded over billion times. App stores are becoming a norm for mobile apps download for smartphones nowadays. They are penetrating in the market very swiftly with 2.4 billion downloads being done in 2010 (Global stats, 2012). Although there is no clear data available highlighting the number of users for the apps industry but the ascending trend in apps downloads indicates a direct relationship with the increase in subscribers. The most popular apps are games, entertainment, news, music and social networking. Social media is gaining user adoption whose evidence is the highest download of Facebook Web app has been downloaded from any app store. The changing trends towards mobile computing support the fact that the number of smart app users have increased and will continue to rise. FORECASTS FOR THE FUTURE: According to a research, the apps download forecast for 2013 is expected to be nearly 7 billion which shows the growth potential of this business in the near future (ABI research, 2010). The diversity of platforms will allow the apps stores to conduct download from social sites and other web associated arenas instead of confining to traditional smartphones. But this trend might slow down a little in later years due to the refinement of mobile web. Consumers will become technology savvy so they will take advantage of the functionality themselves rather than relying on the apps stores. It is highly dependent on the future trends prevalent in the apps market. If the Mobile Network Operators initiate their apps stores in future, it will assist them in capturing untapped developing markets. Sales revenue from apps is estimated at around $36.7 billion by the year 2015. Apple apps stores will take the lead in the industry. The increase in platforms associated with the web, for instance tablet PCs, Internet TV and social media sites, provide an opportunity for apps economy to expand its consumer reach. The apps stores will enable the businesses to be in constant contact with their online users. The games and entertainment apps seem to be of profound importance in the popularity of apps business and it will not fade in the future as well. Instead, the rise of platforms will also enhance the use of these apps (Berg Insight, 2011). To guarantee the future success of the apps industry, a clear strategic direction is thoroughly required. The foremost key to creation of successful apps is in depth understanding of user requirements. Keeping in view the dynamic nature of technology, it is obvious that consumers’ needs are also changing rapidly so this task is challenging yet fruitful. Secondly, innovation will assure better results (Johnson, 2010). The unique features and benefits should be clearly communicated to the users. The consumer will try the app only if he is satisfied that it is useful and will satisfy his needs. Lastly, the app must be easily comprehendible by the user. Complicated apps features may not appeal the user and may fall flat in the market. POPULARITY OF THE CALORIE COUNTER APP: Calorie counter app is a diet app which provides a calorie count of food. It also helps in tracking the exercise and weight loss progress by a diary or log. Its database consists of personalized nutrition information which is accessible on the go from smartphones or any web connected device. Additional features like exercise coaching and recipes are also available. It can assist people in understanding what they should eat and what they should avoid under various conditions. Due to the increasing health concerns, it is gaining popularity among the consumers. Its relevance and uniqueness provides a new domain for the apps market in reaching out their customers. CONCLUSION: The apps industry is a step towards pervasive computing. It has a bright future and there is a forecast of billions of downloads because it is a coalition between two interests. On one hand, individual is looking for something which is simple added to web which is complicated. On another hand, the apps industry allows the service providers to deliver information without the individual going to search engine (Fried, Hansson, and Linderman 84-92). The entire environment of the app is tightly controlled and managed according to the business interests. It is the combination of the customer and provider that creates the growth. This industry can perform effectively with constant innovation and introduction of new enhanced features. Simple and focused execution can be very helpful in delivering value for the company as well as the consumer. Companies should make sure that their apps are universally available to attain maximum penetration. A clear watch on market trends and advancements in apps economy can serve as cutting edge for a business. The apps industry will unveil more opportunities by gaining user acceptance via diverse platforms. The future digital winners will be based on the success of their apps business so it is highly crucial to explore the growth potential of this industry (Howson 148). The popularity of apps stores and the sales of apps download by billions is a clear indicator of its penetration by users worldwide. The economic forecasts also place the apps industry in the limelight by highlighting the upward potential of the business and expansion to other web connected platforms. A clear focused strategic approach will promise a bright future for the apps industry. REFERENCES: ABI research. “Smartphone Downloads from Mobile App Stores to Peak in 2013.” Web. New York, 2010. Ahmad, Majeed. Smartphone: Mobile Revolution at the Crossroads of Communications, Computing and Consumer Electronics. Create Space, 2011. Print. Allen, Sarah. Vidal Graupera, and Lee Lundrigan. Pro Smartphone Cross-Platform Development: iPhone, Blackberry, Windows Mobile and Android Development and Distribution. Apress, 2010. Print. Appling, George, and Giulio Pappalardo. “The Rise of Mobile Application Markets: Gateways to the world of Apps.” Web. 2010. Berg Insight. “The Mobile Application Market.” Web. Oct 2011. Fried, Jason. Heinemeier David Hansson, and Matthew Linderman. Getting Real: The smarter, faster, easier way to build a successful web application. 37 signals, 2009. Print “Global mobile statistics 2012: all quality mobile marketing research, mobile Web stats, subscribers, ad revenue, usage, trend”. Web. Jan 2012 Howson, Cindi. Successful Business Intelligence: Secrets to Making BI a Killer App. McGraw-Hill Osborne Media, 2007. Print Johnson, Hannah. “Latest Statistics on Mobile Apps and Smartphone Usage.” Web. 4 Nov 2010 Stevens, Chris. Appillionaires: Secrets from Developers Who Struck It Rich on the App Store. Wiley, 2011. Print Read More