I think the "hotness" of the app is taken into account--

That is, when an app is new and there are lots of downloads/day, the app
gets a boost in popularity.  When the app has saturated its market, its
popularity settles down.

Mattaku Betsujin wrote:
> I am a bit confused about how the Market calculate the "popularity"
> for the apps. For example, I dont' understand why one app, with
> 5000-10000 downloads, rated 3.51 with a total 68 reviews, is
> considered more popular than another app, with 10000~50000 downloads,
> rated 4.47 with a total of 398 reviews.
>
>
>
> >


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