Boston, MA - May 21, 2009 – Strategy Analytics research shows that the Apple App Store captured a 12% volume share of the mobile applications market in 2008. However, the App Store’s value is significantly lower due to intense competition between developers which has pushed down application prices.

“The Apple App Store’s favorable revenue share for developers has created a tremendous buzz and fostered innovation. This has excited consumers, inspiring an unprecedented volume of downloaded applications. The downside to this popularity is that with so many developers rushing on board, competition has become fierce and the majority of applications are downloaded for free, or at a very low cost,” commented David MacQueen, author of this latest report from the Strategy Analytics Wireless Media Strategies service, “How Apple Changed the Market for Mobile Applications.”

“Other handset manufacturers have reacted to Apple’s success by launching their own stores, but in the past it has been the carriers which dominated application distribution. Carriers are now changing tactics, hoping to re-attract developers—leading to a rapidly changing environment where each company category has its own strengths and weaknesses.  Apple’s has won the initial skirmishes but the war is far from over,” commented David Kerr, Vice President of Strategy Analytics