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Four reasons Windows Phone will struggle

Windows Phone’s 2% of 2012’s app downloads but gains momentum

Mobile users will download nearly 36 billion apps in 2012 and Android and iOS will make up for 83 percent of the app downloads, while only 2 percent can be attributed to Windows Phone.

ABI Research associate Lim Shiyang says, “Although Windows Phone lags behind RIM’s BlackBerry and even Nokia’s Symbian, we shouldn’t ignore the fact that the two percent that we forecast for 2012 would be twice the share the platform achieved last year.

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“Microsoft is gaining momentum, but its starting point is frustratingly low. Contrary to popular belief, this isn’t really a chicken-and-egg problem of low device sales holding back the app business and the slow app business holding back the device sales. It’s more complicated than that.”

There are four factors undermining Windows Phone’s app growth, according to ABI.

The small device market share is the first and most obvious drag.

Second, Windows Marketplace’s global roll-out has taken a long time, further limiting the number of potential customers.

Third, Microsoft has also been slow to enable in-app purchasing, meaning that most of the quality apps remain behind an upfront paywall.

And fourth, there have been no tablets built on the platform.

Advancement on any of these fronts will have a positive impact, say ABI analysts.

According to senior analyst Aapo Markkanen, “One message we hear from many developers is that, purely technically speaking, Windows Phone is actually a rather appealing platform.

And if it turns out to be a platform for relatively high-end devices, avoiding the fragmentation pitfalls of Android, it won’t even need to achieve a remarkably large market share to attract a vibrant app scene.

The arrival of the first Windows 8 tablets, as well as Windows Phone’s upgrade to the Apollo iteration, should also give it a boost, since developers can reuse their code to launch on various screen sizes.”

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