The global market for preloaded software on mobile phones is likely to more than double from 2008 to 2014, according to new figures from iSuppli Corp. It says this market will expand to $7.7 billion (£5.25 billion) in 2014, up from $3.3 billion in 2008. At the same time, worldwide shipments of smartphones are set to rise from 161.1 million units in 2008 to 497.4 million in 2014.

Preloaded software - applications that are already installed in mobile phones when they're bought by consumers – is paid for by the equipment manufacturer, which either buys it from a third party or develops it in-house.

Mark Bridge writes:

Four months ago, Google unveiled a new way for consumers to buy an Android mobile phone. In fact, that’s pretty much what the first line of the press release said. The phone was the Nexus One and it was being sold online by Google.

You could buy it SIM-free or you could buy it with a contract – but you’d be buying it from Google’s online shop. You couldn’t buy it on a real high street.

ABI Research says the number of smartphone applications downloaded from 'app stores' will keep growing until 2013… but those figures will then start to drop.

Last year, consumers downloaded 2.4 billion applications from application stores – a figure that'll almost treble by 2013, when almost 7 billion apps will be downloaded. Apple's App Store will remain the market leader until 2013 according to ABI's report, despite pressure from Android and Symbian. However, ABI Research says the evolution of the mobile internet will then lead to consumers starting to head away from dedicated stores for their software applications. Total app downloads will probably continue to grow, although downloads via app stores are expected to fall.

At Nokia's AGM today, company CEO Olli-Pekka Kallasvuo told shareholders that Nokia had built a solid foundation for future success.

He said "By combining services with devices, Nokia is in a stronger position to grow and create more value for our shareholders. We still have plenty of work to do, but we have built a solid foundation. We believe in our strategy."

Mr Kallasvuo also said Nokia is planning to introduce a new generation of devices this year that he expects will help close the gap with high-end smartphone competitors.