App store downloads to top 100bn in 2013

Mobile app store downloads are on pace to reach 102 billion in 2013, translating to total revenue of US$26 billion, according to Gartner.

These impressive figures compare to total downloads of 64 billion and total revenue of US$18 billion in 2012.

Free apps are expected to account for 91% of total downloads this year, but the ‘freemium’ model is steadily gaining ground as a viable money spinner. While in-app purchases accounted for just 11% of app store revenue last year, this is expected to increase to 17% this year and 48% by 2017.

“Free apps currently account for about 60% and 80% of the total available apps in Apple’s App Store and Google Play, respectively,” Gartner Research Director Brian Blau said.

The in-app purchasing model is also increasingly being extended to paid apps, Blau said. “We see that users are not put off by the fact that they have already paid for an app and are willing to spend more if they are happy with the experience.”

While the research firm expects continued strong growth in downloads through next year, the growth trajectory won’t continue indefinitely. Gartner predicts that downloads will start to slow in later years, due to the consumption habits of smartphone and tablet users.

“The average downloads per device should be high in early years as users get new devices and discover the apps they like,” Gartner research director Sandy Shen explained. “Over time they accumulate a portfolio of apps they like and stick to, so there will be moderate numbers of downloads in the later years.”

Image courtesy of Intel Free Press under CC