Yankee: Premium apps now a third of U.S. downloads

Nearly a third of all applications downloaded by U.S. smartphone users now carry a premium price tag, up from 18 percent a year ago, according to a new study issued by research firm Yankee Group. The average paid app cost is also on the rise, growing from $1.99 a year ago to $2.85. Combined with additional factors including increased smartphone shipments and new app storefronts, Yankee said it is revising previous estimates and now forecasts mobile application revenues in the U.S. will top $11 billion by 2014--in 2010, Yankee expects apps will generate revenues of $1.6 billion, roughly double its previous projection of $537 million.

Apple iPhone users account for the majority of application downloads at 60 apps per year, three times the national average; other AT&T subscribers download 27 apps annually, 42 percent more than average. Android-centric T-Mobile USA follows in second among U.S. operators, with subscribers downloading an average of 18 apps per year. "Apple's innovative one-click technology and AT&T's exclusive deal for the iPhone put them ahead for now," said Yankee Group director Carl Howe in a prepared statement. "But strong results from T-Mobile suggest that Android will be the next breakout smartphone app platform." Yankee adds that more than two-thirds of apps downloaded by Verizon Wireless subscribers fall into the premium category, more than any other carrier.

For more on the Yankee Group forecast:
- read this release [1]

Related articles:
Forecast: 50 billion mobile app downloads [2] in 2012
Gartner forecasts mobile app revenues [3] to near $7 billion in 2010