The month of July was notable for two milestones in the business of mobile apps. First, Apple (NASDAQ:AAPL) announced that it's App Store which provides more than 65,000 applications hit the 1.5 billion downloads in just one year. Second, GetJar, which claims to be the world's largest independent app store with 50,000 applications, hit half a billion download mark. These two news bits are enough to suggest that mobile internet is the catalyst for a dramatic secular technology growth cycle, competition for which is intense among Apple, Microsoft (NASDAQ:MSFT), Research In Motion (NASDAQ:RIMM), Nokia (NYSE:NOK) and Google (NASDAQ:GOOG). Apple secured the first mover advantage in the market with its iPod and has consolidated that with its App store and iPhone. Microsoft has been trying to dethrone iPod with its Zune. Research In Motion, Samsung (SEO), and Nokia have been trying to dethrone iPhone. Meanwhile Google with its gmobile is trying to go one up on Microsoft and Apple. How does the future market look like?

During their Q3, 2009 conference call, Apple's chief operating officer, Tim Cook, revealed that their "traditional" iPod sales would begin to decline (sales of iPod shuffle, iPod nano, and iPod classic), which is why they developed the iPod touch and iPhone. Apple maintained an over 70% US share of the MP3 market, and sold 10.2 million iPods, including iPod touch and the aforementioned traditional iPods. Though they once again didn't break down the sales mix, traditional iPods were down year over year, while iPod touch sales continue to grow, up 130%. Add to that 5.2 million iPhone sales last quarter, and it looks like Apple's new focus on their new mobile platform is well founded. Apple continues to say, if someone is going to cannibalize their market, it's going to be Apple themselves.

Microsoft's answer to iPod, the media player, was launched in November 2006, however, it failed to make any impact in the market. Microsoft has sold about 3 million Zunes in the player's three years of availability. By comparison, Apple sold 10.2 million iPods between March and June of this year. Consequently, Microsoft is reported to be discontinuing Zune 4GB, 8GB, 16GB, 80GB and 120GB models. However, Microsoft will continue to offer these models of Zune till supplies last. Zune HD (high-definition) device -- which is set for a launch on September 15 will be the only Zune device that the company plans to manufacture going forward.