Mobile application stores are getting more attention lately. It has been a new source of revenue for the mobile operators. In the UK O2 is considering a revenue-share plan with handset vendors, where they would only pay 50% upfront for devices, with the remainder geared into actual customer expenditures over the life of the contract. In 2009 and 2010 competitive offerings from other OEMs, OS vendors and MNOs increased. In only two years the number of app stores jumped from 18 (2008) to 57 (2010), by 217% in two years.
Before the launch of Apple application store stores like GetJar and Handango were the place to go to if users wanted to download a mobile application. Apple launched the “Apple Application Store” which dominated the market immediately with 81%of market share in 2008. In 2009 and 2010 competitive offerings from other OEMs, OS vendors and MNOs increased. In only two years the number of app stores jumped from 18 (2008) to 57 (2010), by 217% in two years.
There are several application stores in the market, but Apple store is still on the top. Amongst those rival app stores the Android Market turned out to become the strongest competitor, but the mass of smaller app stores also helped to eat up some of the market share from the market leader. As a consequence Apple’s app platform lost some of its dominant market position. In two years Apple’s market share dropped by 24 percent points to 57%.
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