Mobile Applications a Two-Horse Race, Says ABI Research, with iOS and Android Pulling Away

ABI Research expects mobile application downloads from iOS and Android to account for 78% of all application downloads in 2010, with iOS (the iPhone's operating system) taking the lion's share of 52% of all applications. The numbers are driven by availability, variety and novelty in both the Android market and the iTunes App Store, which is currently unmatched by any other smartphone platform. In addition, the sale of Android phones has taken off in 2010, with over 160,000 activations being reported daily.

"The iTunes App Store's days of being the only game in town are over, although the store will continue to be the biggest player in the market," says wireless research analyst Bhavya Khanna. "However, downloads from other platforms, such as Blackberry's App Store and Nokia's Ovi Store remain sluggish, hampered by a lack of variety and fragmentation among both manufacturers' many devices."

Revenues from mobile app sales continue their decline, as high competition leads to a "race to the bottom." Full-featured games are available from between $.99 and $5, and many popular applications are adopting ad-supported models. Application store owners such as Google, Apple, and mobile operators will continue to support low-priced and free applications because they help market and sell their devices. Making money will become a difficult proposition in a market that is expected to peak in 2011, with annual sales of just under $8 billion.

ABI Research's "Mobile Applications Market Data" (http://www.abiresearch.com/research/1004105) study tracks mobile application downloads and revenues segmented by mobile operating system platform. The database includes historical data and forecasts for application downloads for all major mobile OS's including Symbian, iPhone OS and Android. It also provides mobile application revenue forecasts, and an overview of the major mobile application storefronts.

It is a component of the Mobile Consumer Research Service, (http://www.abiresearch.com/products/service/The_Mobile_Consumer_Research_Service) which also includes Research Reports, Research Briefs, other Market Data products, ABI Insights, ABI Vendor Matrices, and analyst inquiry support.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research's worldwide team of experts advise thousands of decision makers through 28 research and advisory services. Est.1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.