Author: Mintel Group Ltd.
Last saved by: HTTP server

Mobile Phone Apps - UK - October 2013

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
The market
UK app market grows 59% year on year
Figure 1: Estimated value of UK app revenue through the iOS and Google Play App Store, 2012 and 2013
Google Play overtakes App Store in volume of apps
Figure 2: Total apps on smartphone app stores, December 2008-June 2013
Free apps increase year on year
Figure 3: Free and paid spilt of applications in smartphone application stores, 2012 and 2013
Market factors
Smartphone growth slow but steady
No sign of decline in fortunes for iOS or Android
Freemium mechanic continues to prove popular
The consumer
What apps do people download?
Figure 4: Mobile apps installed by consumers, July 2013
How often do people look for and use apps?
Figure 5: Frequency with which consumers download applications, July 2013
Figure 6: Frequency with which consumers use the apps they have downloaded, July 2013
Consumer attitudes towards adverts in apps
Figure 7: Consumer attitudes towards adverts in apps, July 2013
Consumer attitudes towards shopping with applications
Figure 8: Consumer attitudes towards shopping through applications, July 2013
What we think
ISSUES IN THE MARKET
Is it still worth releasing non-Freemium apps?
Where will the next sweeping market innovations come from?
How can the consumer’s advert experience best be optimised?
What should developers be aware of with the decline of BlackBerry?
TREND APPLICATION
Trend: Cam Cam
Trend: Life Hacking
Mintel Futures: Access Anything, Anywhere
MARKET DRIVERS
Key points
Smartphone growth slow but steady
Figure 9: Mobile phone ownership, July 2012-April 2013
HTML5 debate remains unresolved
Android still the most popular smartphone
Figure 10: Mobile phones consumers have, February 2013
Figure 11: Smartphone platform ownership, February 2013
Freemium mechanic proves popular
Figure 12: Proportion of smartphone owners who have downloaded a free or paid-for game, February 2011-February 2013
Figure 13: Apple and Google revenue split between paid, paid with in-app purchases and free with in-app purchases (freemium) apps, August 2013
Wearable tech broadens app usability potential
Google Play grows more, iOS earns more
Figure 14: Total worldwide sales of Apple devices and activations of Android devices, September 2007-September 2013
BlackBerry in difficulties
WHO’S INNOVATING?
Key points
Apple introduces children’s section
The Nightjar plays through sound alone
Apple offers ‘App Resurrection’ policy
BoosterMedia launches doctorhtml5.com
MARKET OVERVIEW
Key points
UK app market grows 59% year on year
Figure 15: Estimated value of UK app revenue through the iOS and Google Play App Store, 2012 and 2013
Figure 16: Split of Apple App Store and Google Play store total app revenue, by app monetisation strategy, August 2013
83% of UK revenue from iOS
Figure 17: Total revenue split by iOS and Google Play app stores, by region, August 2013
Google Play overtakes App Store in volume of apps
Figure 18: Total apps available on smartphone app stores, December 2008-June 2013
Figure 19: Total percentage of applications available across smartphone app stores, June 2013
Overall year-on-year App Store growth much lower in 2013
Figure 20: Year-on-year percentage growth in the number of apps available through app stores, 2011/12 and 2012/13
Free apps increase year on year
Figure 21: Free and paid spilt of applications in smartphone application stores, 2012 and 2013
MARKET SEGMENTATION
Key points
iOS users much more engaged with app use
Figure 22: Source of applications used by consumers, by smartphone operating platform, February 2013
Figure 23: Number of app downloads per month, by percentage of handset operating system users, February 2013
18-34 and iOS users highest app downloaders
Figure 24: Number of apps downloaded in the last month, by age, February 2013
Figure 25: Number of apps downloaded in the last month, by smartphone OS, February 2013
BlackBerry loses business edge with youth app user spike
Figure 26: Age of consumers downloading from application stores, February 2013
COMPANIES AND PRODUCTS
Apple Inc. (iOS)
Background
Number of apps
Financial information
Figure 27: Apple Q3 results (April-June), fiscal year 2009-13
Recent developments
Future objectives and strategies
Revenue policy
Google Inc. (Android)
Background
Number of apps
Financial information
Recent developments
Future objectives and strategies
Revenue policy
Microsoft Corporation (Windows Phone 8)
Background
Number of apps
Financial information
Recent developments
Future objectives and strategies
Revenue policy
BlackBerry (BlackBerry)
Background
Number of apps
Financial information
Recent developments
Future objectives and strategies
Revenue policy
WHAT APPS DO PEOPLE DOWNLOAD?
Key points
Social networks most commonly downloaded apps
Figure 28: Mobile apps installed by consumers, July 2013
Figure 29: Download and installation of apps, by gender, July 2013
Functional apps unpopular with the youth
Online shopping apps disproportionately popular with the wealthy
Figure 30: Consumers who have downloaded an online retail or auction app, by gross annual household income, July 2013
Photo and video sharing apps favoured by heavy users
Older people don’t like apps
Figure 31: Consumers who have never downloaded or installed an application on their smartphone, by age, July 2013
HOW OFTEN DO PEOPLE LOOK FOR AND USE APPS?
Three in 10 app users search a few times a week or more frequently
Figure 32: Frequency with which consumers download applications, July 2013
Figure 33: Frequency with which consumers search for apps to download, by gender, July 2013
Children in the household prompt frequent searching
Figure 34: Frequency with which consumers search for apps to download, by presence of children in the household, July 2013
Media purists also heavy app searchers
Figure 35: Proportion of consumers who search for apps to download every day, by presence of technology in the household, July 2013
Everyday searchers not high downloaders
Figure 36: Heat map of app categories, by frequency of download, July 2013
Over a quarter use apps multiple times a day
Figure 37: Frequency with which consumers use the apps they have downloaded, July 2013
Figure 38: Frequency with which consumers use the apps they have downloaded, by age, July 2013
Figure 39: Frequency with which consumers use the apps they have downloaded, by presence of children in the household, July 2013
CONSUMER ATTITUDES TOWARDS ADVERTS IN APPS
Over a third want opt-in ads
Figure 40: Consumer attitudes towards adverts in apps, July 2013
Figure 41: Agreement that consumers should only see app adverts after explicitly opting in, by age and gender, July 2013
Figure 42: Consumers who have seen and clicked on at least one digital advert, by age, June 2013
Younger consumers much more likely to see ads as disruptive
Figure 43: Agreement that ads in apps disrupt the consumer experience, by age, July 2013
Ad removal will push photo, video and music app sharing
Figure 44: Consumers who would recommend an app to a friend if doing so would allow them to remove adverts, by apps downloaded to their phones, July 2013
Adverts may aid discoverability for heavy users
Figure 45: Consumers who would be happy to see adverts recommending apps they may enjoy, by frequency of app usage, July 2013
CONSUMER ATTITUDES TOWARDS SHOPPING WITH APPLICATIONS
Consumers primarily motivated by low cost
Figure 46: Consumer attitudes towards shopping through applications, July 2013
Figure 47: Consumers who say that an app being highly usable is an important factor for them when using it to make a purchase, by age, July 2013
Younger consumers focus on functionality
Figure 48: Appeal of apps that have high-quality photo/video and apps that include product reviews, when convincing consumers to shop via mobile apps, by age, July 2013
Figure 49: Consumers who have downloaded an online auction or shopping app to their smartphone, by likelihood that a particular feature would convince consumers to purchase content through an app, July 2013
25-34s value the multichannel experience
Little desire for app and store crossover
Differences in top five features for heavy/medium/light users
Figure 50: Top five features likely to prompt the purchase of content through an app, by frequency of app usage, July 2013
APPENDIX – WHAT APPS DO PEOPLE DOWNLOAD?
Figure 51: Mobile phone app categories installed by consumers, July 2013
Figure 52: Mobile phone app categories installed by consumers, by frequency of app usage, July 2013
Figure 53: Most popular mobile phone app categories installed by consumers, by demographics, July 2013
Figure 54: Next most popular mobile phone app categories installed by consumers, by demographics, July 2013
APPENDIX – HOW OFTEN DO CONSUMERS LOOK FOR AND USE APPS?
Figure 55: Frequency with which consumers search for new apps for their phone to try and buy, July 2013
Figure 56: Mobile phone app categories installed by consumers, by frequency with which consumers search for new apps for their phone to try and buy, July 2013
Figure 57: Frequency with which consumers search for new apps for their phone to try and buy, by demographics, July 2013
Figure 58: Frequency with which consumers use apps previously downloaded and installed to their phones, July 2013
Figure 59: Frequency with which consumers use apps previously downloaded and installed to their phones, by demographics, July 2013
APPENDIX – CONSUMERS’ ATTITUDES TOWARDS ADVERTS IN APPS
Figure 60: Consumer attitudes towards adverts in apps, July 2013
Figure 61: Consumer attitudes towards adverts in apps, by most popular mobile phone app categories installed by consumers, July 2013
Figure 62: Consumer attitudes towards adverts in apps, by next most popular mobile phone app categories installed by consumers, July 2013
Figure 63: Consumer attitudes towards adverts in apps, by frequency of app usage, July 2013
Figure 64: Amount spent on applications, by most popular consumer attitudes towards advertisements in applications, July 2013
Figure 65: Amount spent on applications, by next most popular consumer attitudes towards advertisements in applications, July 2013
Figure 66: Most popular consumer attitudes towards advertisements in applications, by demographics, July 2013
Figure 67: Next most popular consumer attitudes towards advertisements in applications, by demographics, July 2013
APPENDIX – CONSUMERS’ ATTITUDES TOWARDS SHOPPING WITH APPLICATIONS
Figure 68: Consumer attitudes towards buying through retailer applications, July 2013
Figure 69: Consumer frequency of app purchases, by most popular consumer attitudes towards buying through retailer applications, July 2013
Figure 70: Consumer frequency of app purchases, by next most popular consumer attitudes towards buying through retailer applications, July 2013
Figure 71: Consumer attitudes towards buying through retailer applications, by frequency of app usage, July 2013
Figure 72: Consumer attitudes towards buying through retailer applications, by most popular consumer attitudes towards buying through retailer applications, July 2013
Figure 73: Consumer attitudes towards buying through retailer applications, by next most popular consumer attitudes towards buying through retailer applications, July 2013
Figure 74: Most popular consumer attitudes towards buying through retailer applications, by demographics, July 2013
Figure 75: Next most popular consumer attitudes towards buying through retailer applications, by demographics, July 2013

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.