Dubai: The applications industry will quintuple to more than $1 billion (Dh3.67 billion) in 2012 as the average selling price of paid apps declines across every platform.
The focus will shift this year to emerging markets as competition heats up in the mature ones.
"Apple and Android look to take advantage of their positions to retain developer interest, maintain a steady flow of high quality apps, and keep consumers wedded to their eco-systems," said Josh Martin of Strategy Analytics.
Ashraf Fawakherji, general manager of telecommunications group Samsung Gulf Electronics, said: "[The] Android market has experienced exponential growth since its launch. According to data from mobile app market intelligence firm research2guidance, the Android market surpassed 500,000 published apps in September 2011."
To position their platforms for the future, Martin said competitors will need to move quickly into the virtual goods space before Apple and Android consolidate their already sizeable leads in paid downloads.
"The introduction of tablets from Amazon and Barnes & Noble and a renewed push for the Windows Phone ensure an intensifying battle for the third horse in the apps ecosystem race," Martin added.
Rajnish Kautia, senior manager in the IT Marketing Division at Sony Gulf, said third party apps will continue to flourish given than apps are one of the main differentiating criteria for tablet users and with the likes of Apple, Google, BlackBerry and Samsung fighting it out in the app market space.
Martin said virtual goods allow developers to earn recurring revenue from heavily used apps, making the business appealing. He however said that few platforms beyond the market leaders had stepped up.
"Thus, Android and Apple may well dominate into the future," Martin said.
