Tag: canalys

Mobile commerce finds strong growth in mobile applications

Mobile applications are beginning to play a major role in mobile commerce. These applications are starting to serve as adequate replacements for NFC technology, allowing more consumers to participate in mobile commerce than ever before. Canalys, a leading market research firm, has released a new report highlighting the growth of mobile applications and the role they are beginning to play in the adoption and expansion of mobile commerce. The report suggests that mobile commerce could come to replace traditional online shopping methods in the near future.

Report highlights performance of mobile applications

According to the report, downloads of mobile applications grew by 11% in the first quarter of 2013. Approximately 13 billion apps were downloaded during that quarter. Many of these applications offered mobile commerce services or some kind of in-app purchase opportunity. Together, these applications accounted for $2.2 billion in paid downloads and in-app purchases during the first quarter, a 9% increase over the previous quarter. The report suggests that the growing popularity of mobile applications, as well as their increasing value, is largely due to the convenience these applications offer, especially in regards to mobile commerce.

Mobile everything is becoming the favored solution for consumers

More consumers are showing favor for using their mobile devices for daily activities, such as online searches, shopping, and engaging in social networks. Mobile services typically offer consumers a range of opportunities to make in-app purchase, either by unlocking additional features for an application or simply purchasing a product through that application. Canalys estimates that the growing popularity of these applications will push the download mark to over 20 billion by the end of this year and that these applications will account for $3.1 billion in revenue.

Mobile commerce still facing several challenges

Canalys notes that the mobile commerce market is still immature and is difficult to measure accurately. There are several challenges that mobile commerce faces that could put a damper on the markets promising future. The most significant of these challenges is security, which is growing more important as consumers begin to understand how much their financial information could be at risk. The continued growth of mobile commerce will also be largely dependent on the social and economic impact it will have. A negative impact will cause the support for mobile commerce to all but evaporate, while a positive impact will encourage more consumers to get involved.

Mobile games account for majority of revenue in apps market

Mobile technology has become an important aspect of the lives of consumers throughout the world. The advent of mobile technology paved the way for applications, pieces of software that provide consumers with a wide variety of services. The mobile applications business has become very lucrative, especially for the developers of mobile games. A new report for Canalys, a market insight and analysis firm, shows that mobile games are a major player in the applications space, and that game developers account for the majority of revenue generated therein.

Report shows that games are far more popular than other applications

According to the report, mobile games are among the most popular applications for Android and iOS mobile platforms. These games occupy a variety of genres and some have become the most favored forms of entertainment for some consumers. According to Canalys, some 25 mobile games developers accounted for more than half of the revenue generated through the applications market in the U.S. during the first 20 days of November. These developers accounted for more than $60 million in downloads and in-app purchases over this period of time.

Games offer versatile experiences

Mobile games are dominating the applications space. This may be due to the simplicity of mobile games and the lengths developers go to in order to ensure constant engagement with consumers. Other applications, such as GPS navigation apps, are not as popular because they are not exceedingly entertaining and serve one function. Mobile games, however, provide consumers with a source of entertainment that can be easily attained and customized to suit their interests.

Developers face major challenges despite success

Though mobile games have come to play a domineering role in the applications market, developers are still faced with significant challenges. The success of mobile gaming has attracted a veritable tide of new development studios, which are over-saturating the market and making it difficult for consumers to find games they are interested in and those that offer a quality experience. Marketability is also a serious challenge, as developers of mobile games do not typically operate with a strong marketing budget that can reach millions of consumers.