The Apple App Store and Google Play have recently passed the threshold of 40 billion cumulative apps downloaded. The smartphone boom is driving exploding usage of mobile apps across the globe. However, product strategists at consumer-facing companies still face significant challenges in defining and planning the life cycles of their mobile apps — and success in this app Internet world is defined by how well app strategy drives engagement among consumers. This report provides an overview of the app store market from a consumer and supply-side perspective and highlights some of the key evolutions to come — including the emergence of smart apps and new business models in a multiconnected environment.