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Source: iPhone vs Others: The Mobile OS Market
Revenues from mobile app sales, however, are expected to decline by 2012, as competition has led to downward pressure on application prices; and a greater proportion of ‘must-have’ applications will begin to have free or advertising-supported substitutes. In addition, notes ABI, many handset makers such as Nokia, and Motorola with its Android handsets, have started to bundle applications that allow users to connect to popular social networks, instant messaging, and GPS services.
“As competition heats up, app makers are both dropping prices and ‘going free’ to stay on top of the download charts,” commented the research company’s VP of forecasting, Jake Saunders.
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