Application Store first generation was about quantitative growth focused on individuals. But, Next generation is expected to be about opening of enterprise market and qualitative enhancement of applications. Enhanced enterprise solution features of OS 4.0 is expected to expand the enterprise market. OS 4.0 solves the existing problems with highly intensified security functions and the ability to distribute Application for enterprise without going through Application Store. The release of high price and high quality applications are recently being increased for medical, business, educational, and location based services.

     Applications are moving beyond smart phones, and are increasingly utilized on various devices such as Tablet PC and TV etc. using N-Screen. The qualitative enhancement of the application is accelerated with the continued development of various APIs and the combination of devices.

     The competitive landscape will be restructured from the current domination of Apple Application Store to Top 2 players in the market with the growth of Android. iOS market share is 40%, and Android is getting close to 30%. Considering that iOS was 50% and Android was only 5% in May 2009, the change is significant within a year(Admob, May, 2010). 7 out of top 10 smart phones in the world chose Android OS. 4 HTC, 2 Motorola, and 1 Samsung (Admob, May, 2010)

     BM will be diversified from the current low price application sales to advertisement, VAS, Freemium based service model in the future.  Application advertisement is expected to rapidly expand through the advertisement platform iAD. The advertisement order already received reaches $60 million, and this amount is about 48% of the 2nd half’s mobile advertisement market. Increase in the portion of In-Application Purchases and related Value Added Services, which charge fee for additional contents (Jupiter Research, 2009). Increase in ‘Freemium’ Applications, which are free to download but profits from downloading additional contents (Jupiter Research, 2009).

     Diversification of Application Development Methods such as DIY(Drive It Yourself), Dutch auction, and joint development etc. Google developed Application Inventor, through which users can create and use their own Applications. The development methods are being diversified such as discussing the development of application through Dutch auction. 

     Intensified Regulations against piracy and for copyright in Application Store.  Prevention of piracy and copyright enforcement are expected to be intensified in the future with the evolution of the Application Store.

-Links

http://www.telco2.net/blog/

http://www.telco2research.com/articles/AN_Amazon-Apple-Google-Distribution_Summary

http://blog.daum.net/jinh19/3

http://lgeri.com

http://blog.naver.com/PostView.nhn?blogId=hys8975&logNo=60099468753

http://www.slideshare.net/bikingbill/the-apple-app-store-and-the-future-of-mobile-apps-presentation