Applications & Apps Business

Microsoft Wants "App Store" Declared Generic

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Microsoft wants the U.S. Patent and Trademark to reject Apple’s 2008 request to trademark “App Store.” That's a nice competitive move if the Seattle giant can prevail over Silicon Valley.

"App Store" is too generic, like a shoe maker trying to claim the rights to "Shoe Store," says the argument against Apple.

"Ah, yes," answers the other side. "But in this case, the App in App Store stands for Apple. After we have built it in our name and made it famous, other folks shouldn't be able to jump onto our bandwagon and adopt it. "

Presumably the others should use "Application Store" as a moniker.

Our opinion: App Store is so flagrantly used that Apple cannot possibly defend it. To defend their claim, Apple would have to attack all press, bloggers etc who use the expressseion indiscriminately. Xerox tried that years ago (before internet) but once the public has the phrase in their head (and on their tongues), you can't hold the dam from breaking. Public use, not Microsoft, puts a phrase into generic use. What Apple can indeed defend is a particular logo that demonstrates ownership.

That's probably how the solons of court will sort the App from the Store...

Year End Report: How Many Apps are Out There?

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Apple App Store for iPhone doubled during 2010 reaching almost 300,000 applications, while the number of applications for the Android Market reached almost 130,000 (6X the Android apps available one year ago). BlackBerry App World (18,000 apps) and Nokia Ovi Store (25,000 apps) both showed triple digit growth in the last year.

No surprise but consumers prefer FREE apps, so developers must experiment with monetization methods other than paid up-front. While the proportion of free applications grew, the average price of the applications also declined for the 100 most popular applications in the Apple App Store for iPhone, BlackBerry App World, Google Android Market and Nokia Ovi Store.

The download ratio between FREE and PAID is 10:1. According to Distimo, the top 300 free applications in USA generated, on average, over 3 million downloads each day during December 2010 versus the paid applications 350,000 downloaded daily. Yet paid downloads increased almost 30% more than free downloads in the top 300 (comparing the download figures of December 2010 versus June 2010).

Comparing June to December in USA, the share of revenue generated by in-app purchases from the most grossing free applications more than doubled for both the iPhone and iPad. But the share of revenue generated by in-app purchases from free applications is much smaller on iPad (15%) compared to iPhone (34%).

This Distimo Report confirms what the market instinctively knows: you have to get the consumer's attention and then find a way to monetize. That's makes it a harsh commercial environment, but to thrive as a paid app... you have to be a super-app.

300,000 Apps in Just over 3 Years, Says IDC

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Application developers have churned out more than 300,000 mobile apps in just over three years, says IDC.

In 2010, mobile apps made the leap from the smartphone to media tablets. In 2011 and beyond, mobile apps will find their way into even more devices, including connected TVs and, by extension, the connected home.

According to a new International Data Corporation (IDC) forecast, the market for mobile applications will continue to accelerate as the number of downloaded apps is expected to increase from 10.9 billion worldwide in 2010 to 76.9 billion in 2014.

Worldwide mobile apps revenues will experience similar growth, surpassing $35 billion in 2014.

"Mobile app developers will 'appify' just about every interaction you can think of in your physical and digital worlds," notes Scott Ellison, VP Mobile and Wireless research at IDC. "The extension of mobile apps to every aspect of our personal and business lives will be one of the hallmarks of the new decade with enormous opportunities for virtually every business sector."

These numbers from IDC make other estimates low...

The Citi Never Sleeps But Does It Blink?

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According to Citibank’s US Internet Stock 2011 Playbook, Apple will generate as much as $2 billion in gross app revenue in 2011. The report quotes Gartner who projects the total app market hit $4 billion in 2010 and should hit $27 billion by 2013.

The biggest driver now is smart phone penetration. Sales grew 53% in 2010 and Citibank expects it to grow another 29% in 2011 and stay in the mid-20% growth range through 2013. ( Editor's Note: But tablets, hybrid devices, and connected TVs will push the App market even further in 2011-2013.)

The report says Android is already making $1 billion in revenues and Citibank expects that could double next year– surpassing YouTube (and the entire online video category).

But as you'll see by the next post...some analysts think these market numbers are WAY TOO LOW...and if Citibank is not asleep, they must at least blinking to miss this.

In-app Payments 34% of iPhone Apps, Says Distimo

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If Apple initially was reluctant to let free app developers explore in-app payments, it was because they didn't expect in-app payments to accounting for so much of the revenue generated for iPhone applications.

According to a new Distimo report, 34% of iPhone app revenue is now coming from "free" apps that charge for extra features after the user is engaged. See chart from SAI....