Mobile apps to generate $1.6 billion revenue this year: Study
According to a new study conducted by the Yankee Group, mobile applications are expected to generate nearly $1.6 billion revenue in the United States in the year 2010.
There are several factors in the report which show the increase in the shipments of smartphones, and more application stores including the expensive ones. Though Apple iPhone users and AT&T subscribers download more applications than anyone else, the research organization has predicted that Android will be the next breakout smartphone application platform.
According to Carl Howe, director of anywhere consumer research at Yankee Group, Boston, MA, two factors drove the company to increase their forecast, the first one was an increase in the percentage of apps that consumers were willing to pay for- up from 18 percent in August to 30 percent in January- and an overall increase in average paid application price from $1.99 in August to $2.85 this year.
The 2009 forecast of the company was $343 million, but that was using the prior paid app ratio of 18 percent with an average price of $1.99.
Titan Global Holdings Revenue Forecast
Titan Global Holdings has issued a revenue forecast for fiscal 2007 of $140 million, with $17.5 million in EBITDA. The mobile part:
Titan Wireless Communications, Inc. (“T Wireless”), Titan’s recently formed prepaid wireless communications subsidiary, is expected to generate approximately $15 million in fiscal 2007 revenue excluding new product offerings and roll-up type acquisitions.
T Wireless is a Mobile Virtual Network Operator (“MVNO”). The Yankee Group, a prominent market research firm, projects that the number of subscribers through MVNO’s will exceed 30 million by 2010. Many MVNO providers are incurring substantial losses to acquire subscribers creating an opportunity to consolidate the MVNO marketplace.
Our prudent approach to growth in the prepaid wireless sector will continue. While many MVNO competitors continue to accumulate significant losses to obtain subscribers, we will continue to focus on profitable growth,??? stated Mr. Jensen. Shareholders can expect us to roll out additional high-growth potential MVNO product launches and to increase margins due to economies of scale, cost cutting, and more efficient cost structures from our Tier 1 telecommunications providers. Additionally, T Wireless will seek opportunities to consolidate subscribers as other MVNO providers exit the space.???
Source- http://www.moconews.net
