Friday, October 25, 2013

UK Mobile Phone Industry, Current Trends and Forecast 2013

Apps starting out and struggling to reach the visibility and critical mass of users that would allow them to exist on a freemium model may wish to begin as premium, shifting to freemium at a later stage in their development, when they have achieved a large enough base of free users to generate a paying core substantial enough to make the model financially rewarding.

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Executive Summary
The market
UK app market grows 59% year on year
Figure 1: Estimated value of UK app revenue through the iOS and Google Play App Store, 2012 and 2013
Google Play overtakes App Store in volume of apps
Figure 2: Total apps on smartphone app stores, December 2008-June 2013
Free apps increase year on year
Figure 3: Free and paid spilt of applications in smartphone application stores, 2012 and 2013
Market factors
Smartphone growth slow but steady
No sign of decline in fortunes for iOS or Android
Freemium mechanic continues to prove popular

Issues in the Market
Is it still worth releasing non-Freemium apps?
Where will the next sweeping market innovations come from?
How can the consumer’s advert experience best be optimised?
What should developers be aware of with the decline of BlackBerry?

Trend Application
Trend: Cam Cam
Trend: Life Hacking
Mintel Futures: Access Anything, Anywhere

Market Drivers
Key points
Smartphone growth slow but steady
Figure 9: Mobile phone ownership, July 2012-April 2013
HTML5 debate remains unresolved
Android still the most popular smartphone
Figure 10: Mobile phones consumers have, February 2013

Who’s Innovating?
Key points
Apple introduces children’s section
The Nightjar plays through sound alone
Apple offers ‘App Resurrection’ policy
BoosterMedia launches

Market Overview
Key points
UK app market grows 59% year on year
Figure 15: Estimated value of UK app revenue through the iOS and Google Play App Store, 2012 and 2013
Figure 16: Split of Apple App Store and Google Play store total app revenue, by app monetisation strategy, August 2013
83% of UK revenue from iOS

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