App industry “nearly worth US$1 trillion”

App industry “nearly worth US$1 trillion”

A report has slapped a huge US$1 trillion tag on the global mobile and tablet apps market, although the figure is not based on app revenue.

The latest study, carried out by App Annie, lands on the figure by combining the market capital of the 37 companies which feature in the top 100 app publishers by revenue on iOS and Android.

This list includes the likes of Apple, Microsoft, Disney and Time Warner.

The top ranked publisher in terms of revenue made from the iOS App Store and Google Play in May 2013 was GungHo Online.

In the 52 weeks ending July 8, 2013, their stock increased 6,144 per cent, with mobile games contributing 94 per cent of their total Q1 2013 revenue.

The report said: “GungHo Online’s growth is an exceptional case and there are many factors that affect stock price, but App Annie’s Intelligence data can help investors develop a deeper understanding of a company’s revenue streams and mobile strategy performance.”

Concerning the wider picture, the report points out that gross revenue for the iOS App Store and Google Play more than doubled between May 2012 and May 2013, with the growth largely put down to increasing smartphone penetration.

Smartphone penetration rose above 50 per cent in South Korea, Norway, Sweden, the UK and USA in 2012 with the current penetration rate globally estimated to be just under one-third in 2013.

It is estimated it will be almost 50 per cent by 2017.

The report added: “This spells opportunities for investors. Not only are businesses figuring out better ways to monetize the mobile app user, but the overall audience base is still nowhere near the ceiling.”

Posted in: Mobile

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