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In this article we ‘ll review the present state of the market, the key App Store building blocks and where will the market be heading in two years.

And while technical openness was established 7 years ago, what was lacking all these years was commercial openness; the funnel between external developers and in-market handsets was so thin that very few software players could pass through. It took Symbian six years to reach 10,000 applications, while it took Apple only 6 months (see our earlier analysis). In the first year of operation, Apple’s App Store brought in 65,000+ apps, 100,000 registered developers, 1.5Billion application downloads and availability to consumers across 77 countries through 40 million iPhone and iPod Touch devices sold.

n this historical context, it is easy to see that App Stores are a developer-to-consumer merchandising channel; a go-to-market vehicle for allowing consumers to distribute and retail their applications directly to the end-consumers, while taking out the middlemen from distribution and retailing.

Our presentation was titled “Mobile Application Stores – State Of Play” and highlights some of our findings on the six largest device manufacturer stores; Apple App Store, BlackBerry App World, Google Android Market, Nokia Ovi Store, Palm App Catalog and Windows Marketplace for Mobile.

Store revival in retail will require a monumental shift in the retailer’s mindset for overhauling customer’s destination shopping experience, personalized marketing, and even personalized merchandise mix.

5 app stores under the microscope

The mobile phone is another emerging digital tool for the holidays and is expected to be used by nearly one in five consumers (19 percent) to assist with their holiday shopping. Those consumers plan to find store locations (55 percent), research prices (45 percent), find product information (40 percent), get discounts and coupons (32 percent) and read reviews (31 percent). One in four (25 percent) even expect to make a holiday purchase with their phone.

Reviews have become another key online source of information, with nearly four in 10 consumers (39 percent) indicating they often read consumer-generated reviews of stores or products online, and one-quarter (25 percent) saying they will likely purchase a product this holiday season based on an online recommendation. More than a third (34 percent) say that online consumer reviews and ratings influence their buying decisions more than advertising.

In large stores, such as Apple’s App Store, it is easy for an application to get lost in the crowd. To avoid that problem, brands and agencies should develop strategies for increasing discoverability, such as using other mobile or non-mobile channels to build awareness of the application so that consumers will seek it out.

Last week, we learned that Apple would be revamping some US retail stores, including a new iPod touch-based point-of-sale (POS) system. A new scanner accessory allows Apple to replace the old Windows CE-based sales handhelds.

AAPL DD Analyst Ratings Executive Series General iPhone Country Qrtly Report Analysis Store Recon iPhone Death Watch

Google showed off on December 7 a prototype of its mobile tagging technology. The company is “QR” barcodes to more than 100,000 local businesses in the U.S. Mobile users can snap a picture of the bar codes and obtain information about that business — including reviews, coupons, and other information. (Smartphone users need an app on their phones that can read the QR codes.) In January 2009, Microsoft launched a beta of its own bar-code search technology, known as Microsoft Tag. It also introduced a free mobile tag reader. Microsoft, being Microsoft, couldn’t simply rely on the QR standard. Instead, it announed it was creating its own bar code technology that stores more information, more dynamically, offering more user choice. It’s cool that Microsoft Tag allows developers to determine the content and experience users will have by allowing choices of text, video, maps, discounts, promotions. But the lack of QR support is a deal breaker for some.

Social networking was found to fail to have any meaning influence on purchase decisions, although it was still viewed as helpful by shoppers, especially Gen Y.

Once inside stores, self-checkout is the most widely adopted technology used (71%),

Handheld scanners, kiosks for swiping loyalty cards to receive personalized coupons and touch screen signage showed high interest.

About 72 hours ago, the RedLaser 2.5 update was published to the App Store.  It was a soft-launch with our new partner, TheFind, which is the fastest growing search engine for shopping in the US with over 400 million products in its search index.  In the 2.5 release we also improved our scanning speed (6% faster), and made a handful of interface improvements.

AppMakr is a streamlined system that creates a native iPhone application out of your existing RSS feeds. You can customize elements of the app and the artwork and then submit it directly to the App Store. You can even embed ads from places like AdMob directly into the app.

According to an as yet unreleased white paper by the DASH7 Alliance, enhanced loyalty programs could be the next big thing. With a DASH7-enabled phone, the white paper states, "a user could set his or her preferences in the Foursquare or Gowalla application that would allow the user to be automatically "discovered" or "checked in" at the coffee shop/restaurant/gun store/etc. and thereby accrue loyalty points passively, i.e. by just being "in" the establishment, rather than requiring active/conscious user behavior to participate in the program.

A start-up called Shopkick Inc., for example, has signed up Best Buy Co. and Macy's Inc. as launch partners for a new kind of app for iPhone and Android handsets that detects when shoppers are in or near stores and offers rewards targeted to them. Shopkick exploits the phones' location-sensing abilities—and cameras that customers can use to scan bar codes on items—to offer product information, coupons or other marketing offers when shoppers are in a convenient position to buy.

With an Apple® iPhone™, iPod Touch® or any other web-enabled mobile device, MobilEdu users can navigate campus/school maps and course catalogs, get real-time updates on sports teams and special events and even e-mail instructors and classmates. Branded uniquely for each institution, MobilEdu can be accessed by users who download their institution’s iPhone application from the Apple AppStore to their iPhone, iPod touch, or by using any mobile web browser.

We consider a mobile ad hoc network setting where Bluetooth enabled mobile devices communicate directly with other devices as they meet opportunistically. We design and implement a novel mobile social networking middleware named MobiClique. MobiClique forms and exploits ad hoc social networks to disseminate content using a store-carry-forward technique. Our approach distinguishes itself from other mobile social software by removing the need for a central server to conduct exchanges, by leveraging existing social networks to bootstrap the system, and by taking advantage of the social network overlay to disseminate content. We also propose an open API to encourage third-party application development. We discuss the system architecture and three example applications. We show experimentally that MobiClique successfully builds and maintains an ad hoc social network leveraging contact opportunities between friends and people sharing interest(s) for content exchanges. Our experience also provides insight into some of the key challenges and short-comings that researchers face when designing and deploying similar systems.