App pioneer GetJar plans to stay independent

HELSINKI (Reuters) - Mobile software store GetJar, ranked No. 2 in the world for the number of downloads, has no plans to give up its independence, despite interest from suitors seeking to tap the fast-growing market, its chief told Reuters.

Silicon Valley-based GetJar was a pioneer in the field when it launched in 2005, three years ahead of Apple's online App Store, which has since created a $4.1 billion global market for mobile applications, according to research firm Chetan Sharma.

Since then dozens of companies -- including Nokia, Microsoft, Research in Motion and many telecom operators -- have followed, creating their own stores.

The annual market is set to reach $30 billion in three to five years, according to several independent research firms. It already has a direct impact on the more than $100 billion cellphone industry.

GetJar -- whose largest markets are India, United States and Indonesia -- reached the 3 million downloads per day level on Thursday. This compares with Nokia's 1.7 million downloads per day, but is well short of Apple's 13 million.

Applications are becoming increasingly important for phone makers like RIM and Apple as the variety and price of available software helps to attract consumers to buy and use their phones.

This has turned industry attention to the stores and many companies in the sector are hurrying to build up their offering, also looking to acquire established players like GetJar.

"We have had multiple strategic acquisition requests," founder and Chief Executive Ilja Laurs told Reuters in an interview, declining to be more specific.

He said the company -- owned by Laurs and venture capital firm Accel Partners -- was not keen to open its books to rivals and aimed to stay independent.

"We have no plans to be acquired any time soon. GetJar is as strong as it is independent," he said, adding this, combined with the fact the firm turned profitable in late 2009, protects the company from being sold off.

FREE APPS

GetJar differs from major rivals through distributing software for all mobile phones for free.

It generates revenue like Internet search engines do -- from companies who want to promote their software.

Developers can make money, for example, through selling advertising within their programme or selling virtual goods.

Software makers are struggling to reach consumers in app stores, where the most popular applications are downloaded millions of times but the majority get only a few downloads.

"App stores create an environment where you can compete only with price," Laurs said, adding: "Pricing will go below cost."

Laurs said he was not worried about a major initiative of 24 large operators to build up an apps wholesaler -- potentially giving developers access to up to 3 billion consumers.

"I don't believe many carriers together can do something commercially viable. For them its difficult to enter the media content market," he said.

(Reporting by Tarmo Virki; Editing by Sharon Lindores)