If you’re wondering where that $5 was you just had yesterday, the first place you should probably look is your smartphone:
Combined revenues from the four major mobile application stores run by Apple Inc., Google Inc., Nokia Corp. and Research In Motion Ltd. will leap 77.7 percent in 2011 to $3.8 billion, with the Apple App Store projected to eat up a gargantuan three-quarters share of the total market, according to new IHS Screen Digest research.
“With consumers continuing to show robust, unflagging interest in downloading games and other applications to devices like smart phones and tablets, collective revenues from the four stores will climb sharply this year,” said Jack Kent, analyst, mobile media, for IHS.
Pardon my naiveté, but what are people buying that could amount to these kinds of projected profits? Are they required to purchase individual levels of Angry Birds? No where in the release was it mentioned whether these are U.S. projections or worldwide, but I’m assuming the former since it’s “only” $3.8 billion. The crazy thing is these profits are expected to keep rising over the next few years:
Total download revenue from games and other applications are projected to continue rising in the next few years, jumping to $5.6 billion in 2012, $6.9 billion in 2013 and $8.3 billion in 2014. The four app stores are the major players at present in the field, but other sites, such as Microsoft’s Windows Marketplace, conceivably could gain enough size and presence in the future to shake up the market.
Perhaps Obama should create a Save Our Economy app and charge a dollar for it. They probably couldn’t call it that, but if the app is related to boobs or kittens, I’m pretty sure people will buy it.