Sizing up the app economy

Revenues from paid apps is set to exceed Rs 1,500 crore and nine billion apps are expected to be downloaded in India in 2015, says a Deloitte TMT India predictions report. Revenues from paid apps are estimated to exceed Rs 1,500 crore in 2015, up from Rs 900 crore in 2014, driven by the increased app usage on smartphones. Also, expansion of 3G network coverage and the roll out of 4G networks in 2015 are expected to further boost smartphone sales in the country.

The huge growth in vertical e-commerce is further expected to boost the app economy. Segments with a highly differentiated buying behaviour and complex supply chain would sustain the growth of a new breed of m-commerce players who would have sustainable business in the face of the horizontal behemoths that exist in the market.

The report says, all players in the app ecosystem may be forced to reinvent their business models in the smartphone and mobile internet age to stay relevant. However, the app economy's true potential can only be realised if network coverage increases and smartphone penetration continues to rise.