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Navigation Tops Downloadable Mobile Apps

Navigation Tops Downloadable Mobile Apps

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According to the latest Telephia research, location-based services (LBS) such as navigation, represented 51 percent of the $118 million in revenue that downloadable mobile applications (such as LBS, weather applications, chat/community, and personal organization tools) generated during Q2 2007. Many consumers, says the report, may not realize the utility of a navigation application on their mobile phone until they use it.

While location-based services deliver highly personalized offerings such as friend-finding and other location-aware features, navigation represents the lion's share of revenue. The Telephia second quarter report on mobile applications, reported that:

  • Approximately 13 million mobile consumers downloaded a mobile application on their phone.
  • Of the $118 million in revenue that these downloadable mobile applications generated during Q2 2007, LBS represented 51 percent.

Doug Antone, president and CEO of Networks In Motion, said "With consumer awareness increasing, there is enormous potential for even greater LBS growth, especially since Telephia research indicates that there are approximately 130 million GPS-capable handsets in the U.S. alone, and growing."

The selling price for LBS applications is roughly 180 percent of industry average, however, overall consumer penetration for mobile applications hovers around five percent, as compared to penetration rates of 7-13 percent for other downloadable content like games, ringtones and premium SMS.

Average Price Paid by U.S. Consumers for Mobile Applications

Mobile Application

Average Price Paid

LBS 

$9.23

Weather

$3.82

Sports

$4.58

Wallpapers/Pictures

$3.29

Music

$4.99

Maps/Directions

$3.95

Personal Organization Tools

$5.41

Source: Telephia Mobile Application Report, Q2 2007

For more information, please go to Telephia here. 

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