Overview

All smart phones come loaded with standard applications defined by the manufacturer. However, the network operators, looking for revenue opportunities, have encouraged the development of other applications that can be used on the cell phones they support. Using these applications will use the network services more and generate more revenue. The network operators established business relationships and development platforms to encourage the growth of these applications.

The release of smart phones like Apple's iPhone, with its 65,000 supported applications required the need for a single point of access to these via an "application store". Various network operators, handset manufacturers and software developers are announcing plans for their "Mobile Application Store" ("MAS"). The MAS is a central location for purchasing supplemental mobile applications, possibly available for a fee.

This report evaluates the state of the mobile application stores and its expected evolution. For example, Sun Microsystems is analyzed as they also announced plans their own MAS. The report also evaluates MAS consortiums such as Symbian and Android.

This report examines the MAS provided by the following handset manufacturers:
 
·         Research in Motion ("RIM")
·         Apple
·         Nokia
·         Palm
·         Motorola
·         LG
·         Samsung
·         Sony-Ericsson 

This research also evaluates the following Asian network operator's MAS plans:  

·         Vodafone
·         NTT Docomo
·         Reliance Communications
·         China Mobile
·         China Unicom
·         China Telecom

Key Findings:

• The Mobile application market forecast is a $9.0 billion revenue opportunity over the next few years.

• The handset vendors have taken the leadership role away from the network operators and are currently driving this market.

• Apple has defined and driven this market to its current state. All other players in this market are reacting to Apple and playing catch up.

• The market is young, confusing and unsettled.  Besides the handset vendors, major players in this market are the network operators, software vendors, consortiums and retailers.

• Great opportunities for software developers. Despite support programs, they are left to figure it out themselves.

• Quote: "The closest thing I've seen to a 'business model' for marketing apps is to advertise like crazy until you get into the top 50 and once you're there, the top 50 list will start generating its own buzz ... But that's not a business model, that's like rolling the dice at a casino."