Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
- UK app market grows 59% year on year
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- 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
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- Figure 2: Total apps on smartphone app stores, December 2008-June 2013
- Free apps increase year on year
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- 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
- The consumer
- What apps do people download?
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- Figure 4: Mobile apps installed by consumers, July 2013
- How often do people look for and use apps?
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- Figure 5: Frequency with which consumers download applications, July 2013
- Figure 6: Frequency with which consumers use the apps they have downloaded, July 2013
- Consumer attitudes towards adverts in apps
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- Figure 7: Consumer attitudes towards adverts in apps, July 2013
- Consumer attitudes towards shopping with applications
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- Figure 8: Consumer attitudes towards shopping through applications, July 2013
- What we think
Issues in the Market
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- 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
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- Trend: Cam Cam
- Trend: Life Hacking
- Mintel Futures: Access Anything, Anywhere
Market Drivers
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- Key points
- Smartphone growth slow but steady
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- Figure 9: Mobile phone ownership, July 2012-April 2013
- HTML5 debate remains unresolved
- Android still the most popular smartphone
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- Figure 10: Mobile phones consumers have, February 2013
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- Figure 11: Smartphone platform ownership, February 2013
- Freemium mechanic proves popular
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- Figure 12: Proportion of smartphone owners who have downloaded a free or paid-for game, February 2011-February 2013
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- Figure 13: Apple and Google revenue split between paid, paid with in-app purchases and free with in-app purchases (freemium) apps, August 2013
- Wearable tech broadens app usability potential
- Google Play grows more, iOS earns more
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- Figure 14: Total worldwide sales of Apple devices and activations of Android devices, September 2007-September 2013
- BlackBerry in difficulties
Who’s Innovating?
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- Key points
- Apple introduces children’s section
- The Nightjar plays through sound alone
- Apple offers ‘App Resurrection’ policy
- BoosterMedia launches doctorhtml5.com
Market Overview
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- Key points
- UK app market grows 59% year on year
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- Figure 15: Estimated value of UK app revenue through the iOS and Google Play App Store, 2012 and 2013
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- 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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- Figure 17: Total revenue split by iOS and Google Play app stores, by region, August 2013
- Google Play overtakes App Store in volume of apps
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- Figure 18: Total apps available on smartphone app stores, December 2008-June 2013
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- Figure 19: Total percentage of applications available across smartphone app stores, June 2013
- Overall year-on-year App Store growth much lower in 2013
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- Figure 20: Year-on-year percentage growth in the number of apps available through app stores, 2011/12 and 2012/13
- Free apps increase year on year
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- Figure 21: Free and paid spilt of applications in smartphone application stores, 2012 and 2013
Market Segmentation
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- Key points
- iOS users much more engaged with app use
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- Figure 22: Source of applications used by consumers, by smartphone operating platform, February 2013
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- Figure 23: Number of app downloads per month, by percentage of handset operating system users, February 2013
- 18-34 and iOS users highest app downloaders
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- Figure 24: Number of apps downloaded in the last month, by age, February 2013
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- Figure 25: Number of apps downloaded in the last month, by smartphone OS, February 2013
- BlackBerry loses business edge with youth app user spike
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- Figure 26: Age of consumers downloading from application stores, February 2013
Companies and Products
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- Apple Inc. (iOS)
- Background
- Number of apps
- Financial information
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- Figure 27: Apple Q3 results (April-June), fiscal year 2009-13
- Recent developments
- Future objectives and strategies
- Revenue policy
- Google Inc. (Android)
- Background
- Number of apps
- Financial information
- Recent developments
- Future objectives and strategies
- Revenue policy
- Microsoft Corporation (Windows Phone 8)
- Background
- Number of apps
- Financial information
- Recent developments
- Future objectives and strategies
- Revenue policy
- BlackBerry (BlackBerry)
- Background
- Number of apps
- Financial information
- Recent developments
- Future objectives and strategies
- Revenue policy
What Apps Do People Download?
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- Key points
- Social networks most commonly downloaded apps
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- Figure 28: Mobile apps installed by consumers, July 2013
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- Figure 29: Download and installation of apps, by gender, July 2013
- Functional apps unpopular with the youth
- Online shopping apps disproportionately popular with the wealthy
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- Figure 30: Consumers who have downloaded an online retail or auction app, by gross annual household income, July 2013
- Photo and video sharing apps favoured by heavy users
- Older people don’t like apps
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- Figure 31: Consumers who have never downloaded or installed an application on their smartphone, by age, July 2013
How Often Do People Look For and Use Apps?
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- Three in 10 app users search a few times a week or more frequently
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- Figure 32: Frequency with which consumers download applications, July 2013
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- Figure 33: Frequency with which consumers search for apps to download, by gender, July 2013
- Children in the household prompt frequent searching
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- Figure 34: Frequency with which consumers search for apps to download, by presence of children in the household, July 2013
- Media purists also heavy app searchers
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- Figure 35: Proportion of consumers who search for apps to download every day, by presence of technology in the household, July 2013
- Everyday searchers not high downloaders
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- Figure 36: Heat map of app categories, by frequency of download, July 2013
- Over a quarter use apps multiple times a day
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- Figure 37: Frequency with which consumers use the apps they have downloaded, July 2013
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- Figure 38: Frequency with which consumers use the apps they have downloaded, by age, July 2013
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- Figure 39: Frequency with which consumers use the apps they have downloaded, by presence of children in the household, July 2013
Consumer Attitudes towards Adverts in Apps
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- Over a third want opt-in ads
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- Figure 40: Consumer attitudes towards adverts in apps, July 2013
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- Figure 41: Agreement that consumers should only see app adverts after explicitly opting in, by age and gender, July 2013
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- Figure 42: Consumers who have seen and clicked on at least one digital advert, by age, June 2013
- Younger consumers much more likely to see ads as disruptive
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- Figure 43: Agreement that ads in apps disrupt the consumer experience, by age, July 2013
- Ad removal will push photo, video and music app sharing
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- Figure 44: Consumers who would recommend an app to a friend if doing so would allow them to remove adverts, by apps downloaded to their phones, July 2013
- Adverts may aid discoverability for heavy users
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- Figure 45: Consumers who would be happy to see adverts recommending apps they may enjoy, by frequency of app usage, July 2013
Consumer Attitudes towards Shopping with Applications
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- Consumers primarily motivated by low cost
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- Figure 46: Consumer attitudes towards shopping through applications, July 2013
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- Figure 47: Consumers who say that an app being highly usable is an important factor for them when using it to make a purchase, by age, July 2013
- Younger consumers focus on functionality
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- Figure 48: Appeal of apps that have high-quality photo/video and apps that include product reviews, when convincing consumers to shop via mobile apps, by age, July 2013
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- Figure 49: Consumers who have downloaded an online auction or shopping app to their smartphone, by likelihood that a particular feature would convince consumers to purchase content through an app, July 2013
- 25-34s value the multichannel experience
- Little desire for app and store crossover
- Differences in top five features for heavy/medium/light users
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- Figure 50: Top five features likely to prompt the purchase of content through an app, by frequency of app usage, July 2013
Appendix – What Apps do People Download?
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- Figure 51: Mobile phone app categories installed by consumers, July 2013
- Figure 52: Mobile phone app categories installed by consumers, by frequency of app usage, July 2013
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- Figure 53: Most popular mobile phone app categories installed by consumers, by demographics, July 2013
- Figure 54: Next most popular mobile phone app categories installed by consumers, by demographics, July 2013
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Appendix – How Often do Consumers Look for and Use Apps?
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- Figure 55: Frequency with which consumers search for new apps for their phone to try and buy, July 2013
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- Figure 56: Mobile phone app categories installed by consumers, by frequency with which consumers search for new apps for their phone to try and buy, July 2013
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- Figure 57: Frequency with which consumers search for new apps for their phone to try and buy, by demographics, July 2013
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- Figure 58: Frequency with which consumers use apps previously downloaded and installed to their phones, July 2013
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- Figure 59: Frequency with which consumers use apps previously downloaded and installed to their phones, by demographics, July 2013
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Appendix – Consumers’ Attitudes towards Adverts In Apps
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- Figure 60: Consumer attitudes towards adverts in apps, July 2013
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- Figure 61: Consumer attitudes towards adverts in apps, by most popular mobile phone app categories installed by consumers, July 2013
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- Figure 62: Consumer attitudes towards adverts in apps, by next most popular mobile phone app categories installed by consumers, July 2013
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- Figure 63: Consumer attitudes towards adverts in apps, by frequency of app usage, July 2013
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- Figure 64: Amount spent on applications, by most popular consumer attitudes towards advertisements in applications, July 2013
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- Figure 65: Amount spent on applications, by next most popular consumer attitudes towards advertisements in applications, July 2013
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- Figure 66: Most popular consumer attitudes towards advertisements in applications, by demographics, July 2013
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- Figure 67: Next most popular consumer attitudes towards advertisements in applications, by demographics, July 2013
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Appendix – Consumers’ Attitudes towards Shopping with Applications
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- Figure 68: Consumer attitudes towards buying through retailer applications, July 2013
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- Figure 69: Consumer frequency of app purchases, by most popular consumer attitudes towards buying through retailer applications, July 2013
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- Figure 70: Consumer frequency of app purchases, by next most popular consumer attitudes towards buying through retailer applications, July 2013
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- Figure 71: Consumer attitudes towards buying through retailer applications, by frequency of app usage, July 2013
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- Figure 72: Consumer attitudes towards buying through retailer applications, by most popular consumer attitudes towards buying through retailer applications, July 2013
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- Figure 73: Consumer attitudes towards buying through retailer applications, by next most popular consumer attitudes towards buying through retailer applications, July 2013
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- Figure 74: Most popular consumer attitudes towards buying through retailer applications, by demographics, July 2013
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- Figure 75: Next most popular consumer attitudes towards buying through retailer applications, by demographics, July 2013
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