Paid downloaded apps are expected to reach $11 billion by 2014 notes a new Yankee Group report. Yankee Group attributes it to increased smartphone shipments, more app stores and more expensive apps--combining to nearly double forecasted mobile app revenue, from $537 million to $1.6 billion in 2010 alone. 

Here's what they found:

• Paid apps are on the rise. Nearly a third of all apps downloaded today are purchased, compared with just 18 percent a year ago.
• Average price per app is up. The overall average paid app costs $2.85, up from $1.99 a year ago.
• AT&T and iPhone users download the most. Apple iPhone users download 60 apps per year, three times the average, while AT&T users download 27 apps annually, or 42 percent more than average.
• T-Mobile and Android are a close second. T-Mobile, the closest thing to an Android pure play, comes in second for all carriers, with its users downloading more than 18 apps per year on average.
• Verizon has the most paid apps. Two-thirds of apps downloaded by Verizon users are paid, the most of any carrier.