Gartner Says by 2017, Mobile Users Will Provide Personalized Data Streams to More Than 100 Apps and Services Every Day

Mobile Apps Will Be a Vehicle for Cognizant Computing

Kuala Lumpur, January 27, 2014 — By 2017, mobile apps will be downloaded more than 268 billion times, generating revenue of more than $77 billion and making apps one of the most popular computing tools for users across the globe, according to Gartner, Inc. As a result, Gartner predicts that mobile users will provide personalized data streams to more than 100 apps and services every day.

"Mobile apps have become the official channel to drive content and services to consumers. From entertainment content to productivity services, from quantified-self to home automation, there is an app for practically anything a connected consumer may want to achieve," said Brian Blau, research director at Gartner. "This connection to consumer services means users are constantly funneling data through mobile apps. As users continue to adopt and interact with apps, it is their data — what they say, what they do, where they go — that is transforming the app interaction paradigm."

Currently, apps often provide an opportunity for brands to reach and engage with customers in a direct way, and therefore data coming from the user is often treated as a resource. This is especially true of free apps, which in 2013 account for 92 percent of app downloads. App users are providing troves of data and often accept advertising or data connectivity in exchange for access to the app.

Gartner said that brands and businesses are already using mobile apps as a primary component of their user engagement strategies, and as the use of mobile devices, including wearable devices, expands into other areas of consumer and business activities, mobile apps will become even more significant.

"In the next three to four years, apps will no longer be simply confined to smartphones and tablets, but will impact a wider set of devices, from home appliances to cars and wearable devices," said Mr. Blau. "By 2017, Gartner predicts that wearable devices will drive 50 percent of total app interactions."

Wearable devices will use mobile apps as their conduit for data exchange and user interface, because many of them will have few or no user interface capabilities. Offloading that responsibility to the mobile device means the wearable devices will depend on apps for all types of user input or output, configuration, content creation and consumption, and in some cases, basic connectivity.

"While wearable devices will not fully rely on, or be a slave to, mobile devices, it is a way for manufacturers to keep these devices small and efficient, therefore significantly reducing device costs in favor of using apps, which are more easily maintained and updated," said Mr. Blau. "Considering their underlying service, most wearable devices need some type of user interface. Taking the example of a fitness-tracking device, ultimately its onboard data will need to be uploaded into the cloud, processed, and then analyzed in reporting back to the user. Apps are an obvious and convenient platform to enable great products and services to be developed."

Mobile apps are often a vehicle for cognizant computing, in which the data gathered through the use of the apps and the analytics around it are becoming more important in both volume and value. In fact, it can be so sophisticated that through their solution providers, consumer brands know a lot about any individual consumer, such as the consumer's demographic data, location, preferences, habits, and even his or her social circle, in some cases. As a result, Gartner predicts that by 2015, cognizant computing will be a key enabler in smart home solutions.

"Cognizant computing takes intelligent actions on behalf of users based on their historical data, preferences and rules," said Sandy Shen, research director at Gartner. "It can predict user needs and complete tasks without users initiating the action or interfering with the service. It can take the very simplistic format of completing a recurring event such as to turn on the water heater at a preset time, or the more sophisticated format of calling the rescue services and connecting with the doctor when an emergency occurs.

Cognizant computing can play a meaningful role at home because home settings are stable with relatively fixed equipment, and the user behavior there is routine and predictable. Tasks tend to be linear, in that each stays in its own boundaries with little interactions among different disciplines. For example, the entertainment services are unlikely to need to interact with the healthcare or home management services. Also, the amount of equipment or service data to call upon is relatively small compared with an outdoor environment, where the surrounding conditions and user intentions are more diverse.

Large service providers such as Google, Amazon, Facebook and Apple are likely to have a head start in this market due to the relationship they already have with consumers, which provides them with a large repository of user data that they can analyze and predict — a key asset in cognizant computing. In addition, consumers also trust these brands to manage their personal data — another key aspect in cognizant computing, whereas newcomers will have to build these relationships from scratch. Smart home solutions will likely span across various brands and platforms in order to become "intelligent" and deliver good user experience. Those that are restricted to a single brand are likely to lose the competitive edge.

Gartner Says Smartphone Sales Accounted for 55 Percent of Overall Mobile Phone Sales in Third Quarter of 2013

Asia/Pacific led the growth in both markets - the smartphone segment with 77.3 percent increase and the mobile phone segment with 11.9 percent growth

Kuala Lumpur, 21 November 2013 — Worldwide mobile phone sales to end users totaled 455.6 million units in the third quarter of 2013, an increase of 5.7 percent from the same period last year, according to Gartner, Inc. Sales of smartphones accounted for 55 percent of overall mobile phone sales in the third quarter of 2013, and reached their highest share to date.

Worldwide smartphone sales to end users reached 250.2 million units, up 45.8 percent from the third quarter of 2012. Asia/Pacific led the growth in both markets - the smartphone segment with 77.3 percent increase and the mobile phone segment with 11.9 percent growth. The other regions to show an increase in the overall mobile phone market were Western Europe, which returned to growth for the first time this year, and the Americas.

“Sales of feature phones continued to decline and the decrease was more pronounced in markets where the average selling price (ASP) for feature phones was much closer to the ASP affordable smartphones,” said Anshul Gupta, principal research analyst at Gartner. “In markets such as China and Latin America, demand for feature phones fell significantly as users rushed to replace their old models with smartphones.”

Gartner analysts said global mobile phone sales are on pace to reach 1.81 billion units in 2013, a 3.4 percent increase from 2012. “We will see several new tablets enter the market for the holiday season, and we expect consumers in mature markets will favor the purchase of smaller-sized tablets over the replacement of their older smartphones” said Mr. Gupta.

While Samsung’s share was flat in the third quarter of 2013, Samsung increased its lead over Apple in the global smartphone market (see Table 1). The launch of the Samsung Note 3 helped reaffirm Samsung as the clear leader in the large display smartphone market, which it pioneered.

Lenovo’s sales of smartphones grew to 12.9 million units, up 84.5 percent year-on-year. It constantly raised share in the Chinese smartphone market.

Apple’s smartphone sales reached 30.3 million units in the third quarter of 2013, up 23.2 percent from a year ago. “While the arrival of the new iPhones 5s and 5c had a positive impact on overall sales, such impact could have been greater had they not started shipping late in the quarter. While we saw some inventory built up for the iPhone 5c, there was good demand for iPhone 5s with stock out in many markets,” said Mr. Gupta.

Table 1

Worldwide Smartphone Sales to End Users by Vendor in 3Q13 (Thousands of Units)

Company	3Q13 Units	3Q13 Market Share (%)	3Q12 Units	3Q12 Market Share (%)
Samsung	80,356.8	32.1	55,054.2	32.1
Apple	30,330.0	12.1	24,620.3	14.3
Lenovo	12,882.0	5.1	6,981.0	4.1
LG Electronics	12,055.4	4.8	6,986.1	4.1
Huawei	11665.7	4.7	7,804.3	4.5
Others	102941.8	41.1	70206.8	40.9
Total	250,231.7	100.0	171,652.7	100.0

Source: Gartner (November 2013)

In the smartphone operating system (OS) market (see Table 2), Android surpassed 80 percent market share in the third quarter of 2013, which helped extend its leading position. “However, the winner of this quarter is Microsoft which grew 123 percent. Microsoft announced the intent to acquire Nokia’s devices and services business, which we believe will unify effort and help drive appeal of Windows ecosystem,” said Mr. Gupta. Forty-one per cent of all Android sales were in mainland China, compared to 34 percent a year ago. Samsung is the only non-Chinese vendor in the top 10 Android players ranking in China. Whitebox Yulong is the third largest Android vendor in China with a 9.7 percent market share in the third quarter of 2013. Xiaomi represented 4.3 percent of Android sales in the third quarter of 2013, up from 1.4 percent a year ago.

Table 2

Worldwide Smartphone Sales to End Users by Operating System in 3Q13 (Thousands of Units)

Operating System	3Q13  Units	3Q13 Market Share (%)	3Q12  Units	3Q12 Market Share (%)
Android	205,022.7	81.9	124,552.3	72.6
iOS	30,330.0	12.1	24,620.3	14.3
Microsoft	8,912.3	3.6	3,993.6	2.3
BlackBerry	4,400.7	1.8	8,946.8	5.2
Bada	633.3	0.3	4,454.7	2.6
Symbian	457.5	0.2	4,401.3	2.6
Others	475.2	0.2	683.7	0.4
Total	250,231.7	100.0	171,652.7	100.0

Source: Gartner (November 2013)

Mobile Phone Vendor Perspective

Samsung: Samsung extended its lead in the overall mobile phone market, as its market share totaled 25.7 percent in the third quarter of 2013 (see Table 3). “While Samsung has started to address its user experience, better design is another area where Samsung needs to focus,” said Mr. Gupta. “Samsung's recent joint venture with carbon fiber company SGL Group could bring improvements in this area in future products.”

Nokia: Nokia did better than anticipated in the third quarter of 2013, reaching 63 million mobile phones, thanks to sales of both Lumia and Asha series devices. Increased smartphone sales supported by an expanded Lumia portfolio, helped Nokia move up to the No. 8 spot in the global smartphone market. But regional and Chinese Android device manufacturers continued to beat market demand, taking larger share and creating a tough competitive environment for Lumia devices.

Apple:  Gartner believes the price difference between the iPhone 5c and 5s is not enough in mature markets, where prices are skewed by operator subsidies, to drive users away from the top of the line model. In emerging markets, the iPhone 4S will continue to be the volume driver at the low end as the lack of subsidy in most markets leaves the iPhone 5c too highly priced to help drive further penetration.

Lenovo: Lenovo moved to the No. 7 spot in the global mobile phone market, with sales reaching approximately 13 million units in the third quarter of 2013. “Lenovo continues to rely heavily on its home market, which represents more than 95 per cent of its overall mobile phone sales. This could limit its growth after 2014, when the Chinese market is expected to decelerate,” said Mr. Gupta.

Table 3

Worldwide Mobile Phone Sales to End Users by Vendor in 3Q13 (Thousands of Units)

Company	3Q13 Units	3Q13 Market Share (%)	3Q12 Units	3Q12 Market Share (%)
Samsung	117,053.8	25.7	97,956.8	22.7
Nokia	63,048.4	13.8	82,300.6	19.1
Apple	30,330.0	6.7	24,620.3	5.7
LG Electronics	18,030.7	4.0	13,968.8	3.2
ZTE	13,696.4	3.0	16,605.9	3.9
Huawei	13,574.4	3.0	11,918.9	2.8
Lenovo	12,999.8	2.9	7,203.7	1.7
TCL Communication	12,345.6	2.7	9,326.7	2.2
Sony Mobile Communications	9,757.5	2.1	8,202.4	1.9
Yulong	8,801.0	1.9	5,218.5	1.2
Others	156,004.7	34.2	153,701.20	35.7
Total	455,642.3	100.0	431,023.8	100.0

Source: Gartner (November 2013)

AutoCAD 360 Optimized for iPad Air & iPad mini with Retina Display and AutoCAD 2014 for Mac is here!

Feeling the Apple Love – User Demand for Mac Drives Continued Autodesk Commitment

MALAYSIA, November 14, 2013 — Autodesk is excited to report that Autodesk AutoCAD 360 is the first professional software app that is optimized for the iPad Air & iPad mini with Retina Display.   The new Apple-designed A7 chip with 64-bit desktop-class architecture provides designers and engineers a much improved experience out of the gate when working with AutoCAD 360.

“We are thrilled to be the first professional application to be ready for prime time iPad Air and iPad mini with Retina display. From a user’s perspective, navigating and editing large models will be snappier and much more fun,” said Jonathan Seroussi, director of AutoCAD web and mobile.  “Users will see an immediate improvement in a number of functions such as rendering – render time is twice as fast in both navigation and editing.”

In addition to faster rendering, opening drawings is much faster, and selection is also twice as fast.

AutoCAD 360 is one of the most popular and widely used Autodesk mobile apps, with more than 5.5 million downloads on the App Store, more than 40 million uploaded drawings, and there are more than 1 million active monthly users on iOS alone.

AutoCAD 360, optimized for iPad Air and iPad mini with Retina display, will be available on the App Store.

On the new iPad, AutoCAD 360 opens files faster, and rendering and selection is also twice as fast.

AutoCAD 360’s compatibility with the new iPad is the latest evidence of the company’s ongoing commitment to development on Apple platforms.  In addition to optimizing the user experience for the new iPad, Autodesk has already updated seven of its mobile apps to take advantage of iOS7.  Users can now experience enhanced functionality with AutoCAD 360, BIM 360 Field, BIM 360 Glue, Sketchbook Mobile, 123D Creature Show, InfraWorks mobile and Pixlr on iOS7.

AutoCAD 2014 for Mac is Here!
Further demonstrating the company’s commitment to Apple platforms, it announced that Autodesk AutoCAD 2014 for Mac  and Autodesk AutoCAD LT 2014 for Mac are available immediately.

Support for Retina display on the new 13- and 15-inch MacBook Pro, synchronization with Autodesk 360 and other enhancements make AutoCAD 2014 for Mac the most powerful 2D & 3D CAD application for Mac. AutoCAD 2014 for Mac is one of the first major professional software applications to include retina display support, which delivers a superior user experience.  AutoCAD 2014 for Mac also boasts major improvements such as synchronization with the Autodesk 360 cloud platform, Package Drawing (like eTransmit on Windows), overall performance enhancements and UI improvements.

“AutoCAD for Mac users are extremely passionate, and we have worked hard to incorporate their top requests and feedback into this release,” said Amy Bunszel, vice president of AutoCAD products at Autodesk. “Customers will find the overall experience much faster and cleaner, enabling designers to be more efficient and collaborative with their teams.”

The enhancements in both AutoCAD 2014 for Mac and AutoCAD LT 2014 for Mac are the result of rigorous development work to give customers a better experience and connect them to the Autodesk 360 platform, giving customers access to cloud-based storage and collaboration capabilities.  Other enhancements include:

• Retina Display Support: AutoCAD now fully supports the stunning, high-definition Retina display experience in the new 13- and 15-inch MacBook Pro throughout the user interface with crisper lines and text, easier-to-see tools, and a much higher level of detail even at high zoom levels.
• Drawing Sync: Directly access files from Autodesk 360 and synchronize them between your computer and the cloud.
• Package Drawing: Similar to eTransmit in AutoCAD for Windows, Package Drawing allows users to quickly collect related files into a compressed folder for easy distribution or storage.
• Online Help: We’ve made major changes to help find the assistance.
• Default Save--‐as--‐Previous Version: It's now possible to set a default save-as version for  drawings.
• Software Security Enhancements: AutoCAD 2014 for Mac enhances software security and helps prevent loading and running of unauthorized or malicious AutoLISP applications.

“This latest release of AutoCAD for Mac provides new features that will help me tremendously in my day-to-day work,” said Jim LaPier, founder of IMPACT Designs, LLC, a US-based consulting firm that provides training and consulting on AutoCAD for Mac.  “Support for the Retina display technology makes it the highest resolution CAD program ever, which means less eye strain for me and wonderfully clear drawings on my screen. My customers can't believe how clear their drawings look on my laptop!  Also, help menus have been improved and settings that were hard to find have been showcased.  Overall, it's a wonderful update to the program.”

New drawing sync feature allows customers to directly access files from Autodesk 360 and synchronize them between their computer and the cloud.

Larger screen format allows for better utilization of screen space.

Package Drawing allows users to quickly collect related files into a compressed folder for easy distribution or storage.

Specialized Mac features provide a better overall user experience.

AutoCAD 2014 for Mac and AutoCAD LT 2014 for Mac are available immediately worldwide in English and French.  Customers can purchase AutoCAD 2014 for Mac or AutoCAD LT 2014 for Mac from the Autodesk Store, through CDW and Amazon, or from a local Value-Added Reseller.

DiGi makes it easy for customers to own the brand new iPhone 5s and iPhone 5c

SHAH ALAM, 31 October 2013 – In conjunction with the launch of the much anticipated iPhone 5s, the most forward-thinking smartphone in the world, and iPhone 5c, the most colorful iPhone yet, DiGi is offering its customers a special introductory price for the 16 GB models at RM965 and RM630 respectively. This offer is bundled with the iDiGi 138 plan.

Both iPhone 5s and iPhone 5c are available at all participating DiGi outlets as well as from DiGi Store Online (shop.digi.com.my), where home deliveries can be arranged with their SIM card fully activated.

(L-R) Praveen Rajan, Head of Products-Internet & Services for DiGi and Jason Ooi, first #DiGiFASTLINE iPhone 5S customer.

iPhone 5s and iPhone 5c come equipped with iOS 7, featuring a stunning new user interface and design that makes it feel more alive with an elegant colour palette, distinct, functional layers and subtle motion. Both devices comes with hundreds of great new features, including Control Centre, Notification Centre, improved Multitasking, AirDrop®, enhanced Photos, Safari®, and Siri®.

"DiGi is thrilled to bring the latest smartphones in town to our customers today. Malaysians are fast becoming avid users of the Internet and we believe the iPhone 5s and iPhone 5c with its new innovative functionalities will further enhance our customers’ online experience,” said Praveen Rajan, Head of Products – Internet & Services for DiGi.

(L-R) Praveen Rajan, Head of Products-Internet & Services for DiGi and Wong Carmen, first walk-in iPhone 5S customer.

The first 100 customers, who queued at each of the five DiGi Stores for the Midnight Sale, were offered a special promotion of RM99 for iPhone 5c 16GB which comes with the iDiGi 138 plan. The five DiGi stores are in SS2 in Petaling Jaya, Taman Molek in Johor Bahru, Api-Api in Kota Kinabalu, Jalan Kulas Tengah in Kuching and Pulau Tikus in Pulau Pinang

Leading up to the launch, DiGi ran a unique virtual queue, the #DiGiFastline.  DiGi invited customers nationwide to spread the word on its iPhone 5s and iPhone 5c promotions via Facebook and Twitter. The 250 most active advocates between midnight of 28th October and midnight of 29th October received a special pass to queue in the fast track lane, making it easy and faster for them to get their hands on the latest iPhone models.

For full pricing and availability details for iPhone 5s and iPhone 5c in Malaysia from DiGi, please visit: digi.my/iphone

For more information on iPhone 5s and iPhone 5c, please visit: www.apple.com/iphone

Ovum comments: Apple announces a raft of new products and price changes

Following the raft of new products and price changes announced by Apple recently, Jan Dawson, chief telecoms analyst at Ovum has the following initial comments:

“As expected, Apple took some cues from the iPad Mini in launching the new iPad Air, which is thinner and lighter, while adopting many of the internal improvements first seen in the iPhone 5S. This represents a good enough boost to the previous version to trigger good upgrade sales and get iPad shipments growing again, which was a key objective for this launch. However, the company also took a step back from the strategy it adopted when it launched the first iPad Mini. When that device launched, it was with a sub-par display and specs that matched the older iPad 2. The new iPad Mini and iPad Air both have top-of-the-line specs, and start at US$399, meaning that the minimum price for a high-performance iPad has actually gone up. Meanwhile, the iPad 2 and iPad Mini will remain on sale at lower prices, but with significantly less appeal given the gap in specs between them and the new iPads. It seems as though Apple is trying to push average selling prices for iPads back up again after they’ve dropped steadily over the past year. Both devices should sell very well, especially over the holiday period, but Apple held off being as disruptive as they might have been by pricing them relatively high.

“This is the clearest statement Apple could have made that it is only interested in competing in the premium tablet space. The yawning gap between the specs of the cheaper iPad Mini and iPad 2 and the new iPads signifies that it is only willing to compete at the lower price points with older models. This leaves a huge chunk of the tablet market unserved by Apple while others such as Google, Amazon and a raft of others aggressively target the sub-US$400 market. This reinforces our view that Apple’s share in tablets will continue to fall as Android’s share rises over the coming years.

“Though the iPad news will generate the headlines, the changes to Apple’s software licensing for Mac OS X, iLife and iWork is also important, not least for Microsoft. Microsoft generates 96 percent of its operating margins from operating system and productivity software licensing, and Apple is now teaching people to expect both of those things to be free. While this won’t disrupt Microsoft’s business overnight, it will create further pressure on Microsoft to bring down prices for its productivity software and especially for Windows.

“This is yet another example of one of the keys to being a successful player in the consumer tech market: using your core business to subsidize low-cost or free products in other categories. Amazon uses its e-commerce and digital sales to fund devices, Google uses advertising revenue to fund its software and services, and Apple is now using hardware to subsidize software across the board. The big question is, what can Microsoft do to compete, when its cash cow is being eroded by these moves from its competitors?”

DiGi to Bring iPhone 5s and iPhone 5c to Malaysia on 31 October

Shah Alam, 10 October 2013 – DiGi Telecommunications Sdn Bhd (DiGi) today announced it will offer iPhone 5s, the most forward-thinking smartphone in the world, and iPhone 5c, the most colorful iPhone yet, to customers beginning 31 October 2013.

Customers may pre-register interest today at www.digi.my/iphone.  More details on the packages will be provided in due course. For more information please visit: www.digi.com.my

For more information on iPhone, please visit: www.apple.com/iphone.  

Please find attached the screenshot of the iPhone 5 (iPhone 5s and iPhone 5c) on the pre-registration page on DiGi's website.

Updated Android and iOS versions of Kaspersky Security for Mobile are available in Google Play and Apple App Store

PETALING JAYA, October 8, 2013 - Kaspersky Lab announces the release of its updated versions of Kaspersky Security for Mobile on Android and iOS platforms. This is the latest version of its application to protect and manage corporate mobile devices. Client applications are now available in Google Play and Apple App Store. The updated versions offer enhanced performance and include several useful new functions, such as notifications when employees enter roaming, automatic Wi-Fi profiles for Android, etc.

Kaspersky Security for Mobile is an advanced solution developed to protect and manage corporate mobile devices – smartphones and tablets. The solution can quickly and safely integrate employees’ personal devices into the corporate network, to reliably protect confidential information stored on them and to remotely block the device and wipe any sensitive data in case of loss or theft.

The new versions of the client applications for iOS and Android-based smartphones and tablets have been improved and their functionality has been extended.

In particular, these applications are now available in Google Play and Apple App Store, enabling them to be updated centrally and automatically on employee devices using the update systems built into iOS and Android. In turn, employees can connect to the corporate network and download and install Kaspersky Security for Mobile from a familiar source.

One additional feature of the application for Android is a notification function whenever an employee enters roaming. Whenever a smartphone or tablet protected by Kaspersky Security for Mobile registers on a guest cellular network, Kaspersky Lab’s solution alerts the administrator and it appears on the Kaspersky Security Center management console. The system administrator or another person in charge can impose money-saving measures on the company’s behalf, reducing sync times or selecting better-value tariffs, etc.

Now the Android version of Kaspersky Security for Mobile is also capable of automatically configuring access to the corporate Wi-Fi network. Previously this function was only available for iOS. Now employees who use the Android-based devices will automatically receive the necessary settings while entering the corporate Wi-Fi network – the network name and password. Automatizing this function allows the companies to speed up and simplify the process of integration to the corporate network, to reduce the number of requests to the technical support service and to generally save the IT department costs.

On both platforms Kaspersky Security for Mobile also integrates a new system of recovering passwords for encrypted containers, allowing the system administrator to help employees restore lost or stolen passwords. The mechanisms separating personal and corporate information contained on employees’ devices have been significantly improved, providing even higher levels of protection for confidential corporate data.

“In the updated version of Kaspersky Security for Mobile we tried to extend the functionality of the solution as far as possible, and make the solution simpler to use. Now it is easier to install and update the program, while the roaming notification function offers more effective control over mobile communication tariffs and will reduce the company’s costs,” said Nikolay Grebennikov, Chief Technology Officer at Kaspersky Lab.

Kaspersky Security for Mobile is available both as part of Kaspersky Endpoint Security for Business, a comprehensive security solution developed to protect corporate IT infrastructure, and as a standalone solution which can be integrated into the corporate network regardless of other protection products. More detailed information about this and other Kaspersky Lab products for business is available on the company’s web site http://www.kaspersky.com/business-security

Gartner Says Mobile App Stores Will See Annual Downloads Reach 102 Billion in 2013

Kuala Lumpur, 20 September 2013 — Mobile app stores will see annual downloads reach 102 billion in 2013, up from 64 billion in 2012, according to Gartner, Inc. Total revenue in 2013 will reach $26 billion, up from $18 billion in 2012. Free apps will account for 91 percent of total downloads in 2013 (see Table 1). Gartner said that in-app purchases (IAPs) will account for 48 percent of app store revenue by 2017, up from 11 percent in 2012.

"We expect strong growth in downloads through 2014, but growth is forecast to slow down a bit in later years," said Sandy Shen, research director at Gartner. "The average downloads per device should be high in early years as users get new devices and discover the apps they like. Over time they accumulate a portfolio of apps they like and stick to, so there will be moderate numbers of downloads in the later years."

"Free apps currently account for about 60 percent and 80 percent of the total available apps in Apple's App Store and Google Play, respectively," said Brian Blau, research director at Gartner. "iOS and Android app stores combined are forecast to account for 90 percent of global downloads in 2017. These app stores are still increasingly active due to richer ecosystems and large and very active developer communities.

However, we expect average monthly downloads per iOS device to decline from 4.9 in 2013 to 3.9 in 2017, while average monthly downloads per Android device will decline from 6.2 in 2013 to 5.8 in 2017. This relates back to the overall trend of users using the same apps more often rather than downloading new ones."

Table 1. Mobile App Store Downloads, Worldwide, 2010-2016 (Millions of Downloads)

	2012	2013	2014	2015	2016	2017
Free Downloads	57,331	82,876	127,704	167,054	211,313	253,914
Paid-for Downloads	6,654	9,186	11,105	12,574	13,488	14,778
Total Downloads	63,985	102,062	138,809	179,628	224,801	268,692
Free Downloads %	89.6	91.0	92.0	93.0	94.0	94.5

Source: Gartner (September 2013) 

IAP purchases will drive 17 percent of the store revenue in 2013 and increase to 48 percent in 2017. However, 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. Nevertheless, IAP will become a major monetization method for apps stores and developers.

IAP contributed to 76% of Apple's App Store revenue from iPhones in the U.S. in February 2013, up from 53% in January 2012 (based on information published by Distimo). The number is uneven globally, and the U.S. is on the high side as are some of the developed markets in Asia. This will encourage more developers to include IAP functionality in their apps, which will drive more IAP downloads in the future.

Research shows that IAP contributes to a significant amount of Apple's App Store revenue from iPhones worldwide. Other platforms have not reached such high levels as the iPhone, but analysts expect they will also see IAP contributions increase in the future.

"We see that users are not put off by the fact that they have already paid for an app, and are willing to spend more if they are happy with the experience, said Mr. Blau.”As a result, we believe that IAP is a promising and sustainable monetization method because it encourages performance-based purchasing; that is, users only pay when they are happy with the experience, and developers have to work hard to earn the revenue through good design and performance."

Ovum comments: Apple won't crumble just yet

Following Apple’s announcement today, Ovum analysts have put together their initial reaction. Tony Cripps, Principal Analyst, Devices and Platforms, Telecoms at Ovum provides his view on the new releases:

“Even post-Jobs Apple still does great theatre, even if most of what was announced was unusually well-heralded in the blogosphere.

“Clearly there’s little need for gimmicks in the flagship 5S, in a launch replete with significant spec upgrades over and beyond the usual screen improvements. Apple, is certainly offering meaningful innovation here. Moving to a 64-bit architecture means Apple can genuinely claim to have brought something new to the smartphone party. It should certainly help the company further cement its lead as a mobile gaming platform and will give the Android fraternity something to think about in a space whose significance is sometimes downplayed beyond the gaming world.

“Ingratiating itself to the burgeoning community of health and fitness application developers with new sensors is also a good move by Apple at a time when consumer and professional interest in those categories are booming.

“Meanwhile the integrated capacitive fingerprint sensor will build legitimacy for the technology in mainstream consumer electronics, although privacy concerns are bound to raise their heads in these newly paranoid times.

“Anyone expecting Apple to come truly down market with the iPhone 5C was fooling themselves. The day that happens is the day the company signals that it has run out of headroom for expansion. It’s far from ready to concede that yet as it’s greater interest in Japan and China show, although the mooted tie up with China Mobile wasn’t announced as this comment was written.

“It does though indicate an acceptance that the consumers in the upper reaches of the smartphone mid-market are increasingly looking to distinctive devices of their own, and are not happy to accept cast offs or dumbed-down versions of former flagships.

“Colour variations and a clear design of its own is a good way to do this and clearly Apple isn’t too proud to follow its smartphone rivals in using this tactic. This change hasn’t affected Apple too much to date but would have represented a threat if the company hadn’t addressed the problem now – its once a year refresh can sometimes work against it.”