Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Value of application sales and in-app purchases in the UK, 2012-14(e)
- Market factors
- Smartphones reach 75% of consumers; tablets in 50% of homes
- App usage continue to increase
- New categories come from the connected home and launch of wearables
- Companies, brands and innovation
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- Figure 2: Top 10 most profitable countries by total app revenue, by store, July 2014
- The consumer
- Number of apps downloaded
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- Figure 3: Proportion of consumers who have ever downloaded apps for their devices, July 2014
- Figure 4: Number of apps downloaded onto smartphone/tablet in the last month, July 2014
- Amount spent on apps and in-apps
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- Figure 5: Amount spent on buying smartphone and tablet apps, July 2014
- Figure 6: Amount consumers have spent on in-app purchases, July 2014
- App preferences across devices
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- Figure 7: Application preferences across devices, July 2014
- Attitudes towards apps
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- Figure 8: Consumer attitudes towards buying smartphone applications, July 2014
- Figure 9: Reasons why consumers have not downloaded apps, July 2014
- What we think
Issues and Insights
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- Low-income consumers do not participate in in-app purchases (IAPs)
- The facts
- The implications
- Which app stores should developers target?
- The facts
- The implications
Trend Application
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- Trend: Make it Mine
- Trend: Influentials
- Mintel Futures: East Meets West
Market Drivers
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- Key points
- 75% of consumers have a smartphone; 55% a tablet in the home
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- Figure 10: Technology in consumer households, July 2014
- Figure 11: Technology consumers personally own, July 2014
- Figure 12: Household and personal ownership of computing technology, November 2009 – April 2014
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- Figure 13: Smartphone and tablet ownership, by age, July 2014
- Android is the dominant OS on both devices
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- Figure 14: Smartphone and tablet ownership by operating system, July 2014
- iOS and Android smartphones and tablets treated differently by consumers
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- Figure 15: iOS and Android tablet ownership, by age, July 2014
- Figure 16: iOS and Android smartphone ownership, by age, July 2014
- Android has greatest level of paired devices
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- Figure 17: OS on consumer smartphones, by OS on consumer tablets, July 2014
- App use increased by 115% in 2013
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- Figure 18: Year-on-year growth in app usage, 2012 -13
- Figure 19: Text messages and internet-connected messages sent in the UK, 2007-13
- Boost to UK economy will promote government support
- More health and home apps likely to appear over 2015
Who’s Innovating?
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- Key points
- Helpouts connects experts and amateurs
- Hyperlapse uses accelerometer to boost user videos
- MotionSavvy understands sign language
- Slingshot aims to provoke greater engagement
Market Size, Segmentation and Share
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- Key points
- Market sees consistent year on year growth
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- Figure 20: Value of application sales and in-app purchases from the iOS App Store and the Google Play Store in the UK, 2012–14 (e)
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- Figure 21: iOS App Store and Google Play store UK revenue, by revenue model, July 2014*
- Figure 22: Total proportion of apps on each store that are paid or free, globally, June 2014*
- Freemium content provides big boost to Google Play
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- Figure 23: Top ten most profitable countries by total iOS and Google app revenue, by store, July 2014
- Microsoft and BlackBerry still lag in available apps
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- Figure 24: Number of apps in Apple, Google, Microsoft and BlackBerry app stores, December 2008 – June 2014
- Google Play growth in apps cut by four fifths
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- Figure 25: Percentage growth in available store apps, 2011 - 2014
- Worldwide app downloads to be 95% free in 2017
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- Figure 26: Estimated app sales worldwide, 2012-17
Companies and Products
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- Apple Inc. (iOS)
- Background
- Number of apps
- Financials and strategy
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- Figure 27: Apple Q3 results (April – June), fiscal year 2009-14
- Google Inc. (Android)
- Background
- Number of apps
- Financials and strategy
- Microsoft Corporation (Windows Phone 8)
- Background
- Number of apps
- Financials and strategy
- BlackBerry
- Background
The Consumer – Number of Apps Downloaded
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- Key points
- Most devices users have downloaded an app at some point
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- Figure 28: Proportion of consumers who have ever downloaded apps for their devices, July 2014
- OS rather than device determines participation
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- Figure 29: Smartphone users who have ever downloaded an app, by OS, July 2014
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- Figure 30: Tablet users who have ever downloaded an app, July 2014
- Smartphone users very marginally more likely to have downloaded apps
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- Figure 31: Number of apps downloaded onto a smartphone/tablet in the last month, July 2014
- Lack of distinct age digression suggests apps are mainstream
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- Figure 32: Number of smartphone apps downloaded in the last month, July 2014
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- Figure 33: Number of tablet apps downloaded in the last month, July 2014
The Consumer – Amount Spent on Apps and IAPs
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- Key points
- Smartphone users slightly less likely to spend than tablet owners
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- Figure 34: Amount spent on buying smartphone and tablet apps, July 2014
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- Figure 35: Amount spent buying apps on smartphones in the last month, by age, July 2014
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- Figure 36: Amount spent buying apps on tablets in the last month, by age, July 2014
- Wealthier consumers a third less likely to have only bought free apps
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- Figure 37: Amount spent on smartphone apps by gross annual household income, July 2014
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- Figure 38: Amount spent on tablet apps by gross annual household income, July 2014
- Windows device owners spend the most
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- Figure 39: Amount spent on smartphone apps, by smartphone OS, July 2014
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- Figure 40: Amount spent on tablet apps, by tablet OS, July 2014
- In-app spending comparatively rare
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- Figure 41: Amount consumers have spent on in-app purchases, July 2014
- Apps could partner with points schemes for in-app purchases
The Consumer – App Preferences across Devices
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- Key points
- Consumers prefer to browse for apps on tablets
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- Figure 42: Application preferences across devices, July 2014
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- Figure 43: Search results for “google” in iOS, Android and Windows Phone, September 2014
- Smartphones aid discoverability
- Usage of devices is equal, despite clear tablet preference
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- Figure 44: Devices consumers prefer to use apps on, by age, July 2014
- Even customers who prefer spending on smartphones spend more on tablets
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- Figure 45: Average monthly spend on apps by device consumers prefer to buy for, July 2014
The Consumer – Attitudes towards Apps
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- Key points
- Apps the determining factor for 29%
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- Figure 46: Consumer attitudes towards buying smartphone applications, July 2014
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- Figure 47: Attitudes towards buying apps, by tablet OS, July 2014
- A third who say apps are crucial also want multiplatform access
- Consumers who prefer to pay outright for apps will still spend on in-app purchases
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- Figure 48: Spend of more than £5 on apps or in-app purchases through smartphones, July 2014
- Half of users who have not downloaded apps have no interest in them
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- Figure 49: Reasons why consumers have not downloaded apps, July 2014
- Smartphones imply dedicated device ownership
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- Figure 50: Non-app buyers by tablet OS owned, July 2014
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- Figure 51: Non-app buyers by smartphone OS owned, July 2014
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