Emerging smart

06.08.2012
Application stores are gaining ground in the emerging markets of Asia Pacific, the Middle East, South and Central America and Africa. This is happening because smartphone penetration is increasing and users are seeking a richer experience on their mobile devices, according to a new report by Ovum.

The independent telecoms analyst firm says operators regard app stores as a key factor in growing their subscriber bases and driving network traffic.

"Smartphone penetration in emerging markets is expected to dramatically increase from 2013, and this will have a significant impact on the app store dynamic," says Richard Hurst, senior analyst telecoms emerging markets, Ovum. "The availability of low-cost Android, RIM and Nokia smartphones will see app stores becoming an increasingly important element of the distribution chain.

"Device and OS vendors will look to establish themselves as the leading providers of apps in emerging markets, emulating the position that they occupy in developed markets. However, in countries such as China, India, Brazil and South Africa, MNOs with strong app store propositions will fight to defend their positions," says Hurst.

Smartphone users are attractive targets for emerging market operators as they are early adopters and typically have a higher disposable income than average consumers, the report added.

"However, the majority of applications in emerging market app stores are free or low cost as consumers have shown an unwillingness to pay for applications," concludes Hurst.