With the rapid prevalence of smart mobile devices and the dramatic proliferation of mobile applications (Apps), App recommendation becomes an emergent task that will benefit different stockholders of mobile App ecosystems. Unlike traditional items, Apps have privileges to access a user's sensitive resources (e.g., contacts, messages and locations) which may lead to security risk or privacy leak. Thus, users' choosing of Apps are influenced by not only their personal interests but also their privacy preferences. Moreover, user privacy preferences vary with App categories. In this paper, we propose a mobile sparse additive generative model (Mobi-SAGE) to recommend Apps by considering both user interests and category-aware user privacy preferences. We collected a real-world dataset from 360 App store - the biggest Android App platform in China, and conduct extensive experiments on it. The experimental results show that our Mobi-SAGE consistently and significantly outperforms the state-of-the-art approaches, which implies the importance of exploiting category-aware user privacy preferences.