Handheld Software Sales Remain Strong

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Though worldwide shipments of handhelds are in a bit of slump, software for handhelds continues to sell at a brisk pace, according to software retailer Handango.

During the second quarter of this year, the average number of applications purchased per user on Handango fell only slightly from 2.14 in the first quarter to 2.10, while the average selling price of applications rose slightly from $16.25 in the first quarter to $16.36.

The pace of new application development slowed to more established levels in the second quarter when developers released 5,410 new applications, down from an all-time high of 7,467 new applications in the first quarter of 2003.

The sales distribution across categories remained virtually unchanged from the first quarter. Games continue to be the top category, with 25% of Handango’s revenue coming from this area. However, Personal Productivity is right behind with 22%. People continue to want to personalize the way their handhelds work, so Utilities is number three with 14%. Four more categories are all just below 10%: Medical, Travel, Entertainment, and Business & Professional. Education & Reference was just 3% of Software Sales during the quarter.

Based on a repeat buyer survey, Handango discovered that the average software consumer who has purchased two or more times has added more than 10 third-party commercial software applications to his or her mobile device.

These results include software for Palm OS, Windows Mobile Pocket PC, Symbian OS, Java, Linux, and others.

Those interested in learning more can download the latest Handango Yardstick (PDF).

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