Mobile app downloads grow 11% in Q1 2013, revenues hit $2.2B

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  • Reply 21 of 28
    robbyxrobbyx Posts: 479member
    The only question is - what is a 'living'. 

    A second thought - if 20% are making a living then what is the percentage that are building a sustainable business via the App store. My guess is about Zero. And herein lies the problem - Apple extracts ALL of the profits and leaves nothing for anyone else. This is neither sustainable for Apple or for the developer ecosystem. You cannot build a business off of Apple, but you can build a business off of Microsoft. 

    At some point Apple will have to return the profits to the ecosystem or think up a new screen to entice users to buy. So far there is no compelling financial reason to be an Apple developer.

    It's a case of Apple winning the battle, but losing the war. Balmer was right - eventually it boils down to developers being able to build a sustainable business. Apple hasn't met that metric.

    Yet.

    If 20% are making a living, I'd call that a sustainable business. Might be a business of one, but it's a business.

    The majority of app developers in any store aren't going to be able to make a living. The Internet facilitates more glut. How many word processors do we need? Before easy and cheap distribution, you had few titles to choose from. Today there are hundreds of apps that all do the same thing in pretty much every category. Only a few will be popular.

    I bet game developers are the majority of those making a living from apps. Always something new to buy, not just a "better" or "different" take on the word processor.
  • Reply 22 of 28


    Then how about you answer the question - what sustainable business can you point to that is built on iOS app?


     


    Sure Wells Fargo can employ someone to create an app for free and then use that as part of the WF service. That's irrelevant to the question I posed. Out of the million apps on the app store how many are generating 'measurable, sustainable, profitable revenue from volume'? 


     


    Find just one that generates enough revenue to support 10 programmers? When you've found one, find 10 more. Surely out of a million apps there must be a profitable company behind them?


     


    The only people making money from the app store is Apple. The rest just drives hardware sales. There are no 5 year mobile app business models being built on iOS - just ask the VC's. It's all moving to the Enterprise and services which scale across multiple screens.


     


    Welcome back to the web.

  • Reply 23 of 28
    robbyxrobbyx Posts: 479member
    Then how about you answer the question - what sustainable business can you point to that is built on iOS app?

    Sure Wells Fargo can employ someone to create an app for free and then use that as part of the WF service. That's irrelevant to the question I posed. Out of the million apps on the app store how many are generating 'measurable, sustainable, profitable revenue from volume'? 

    Find just one that generates enough revenue to support 10 programmers? When you've found one, find 10 more. Surely out of a million apps there must be a profitable company behind them?

    The only people making money from the app store is Apple. The rest just drives hardware sales. There are no 5 year mobile app business models being built on iOS - just ask the VC's. It's all moving to the Enterprise and services which scale across multiple screens.

    Welcome back to the web.

    I use a number of apps from small developers who employ at least a few people each. Omni, IGG, NoThirst, Cultured Code all come to mind. The success of various game developers on iOS has also been well documented.
  • Reply 24 of 28

    Quote:

    Originally Posted by Peter Cranstone View Post


    Then how about you answer the question - what sustainable business can you point to that is built on iOS app?


     


    Sure Wells Fargo can employ someone to create an app for free and then use that as part of the WF service. That's irrelevant to the question I posed. Out of the million apps on the app store how many are generating 'measurable, sustainable, profitable revenue from volume'? 


     


    Find just one that generates enough revenue to support 10 programmers? When you've found one, find 10 more. Surely out of a million apps there must be a profitable company behind them?


     


    The only people making money from the app store is Apple. The rest just drives hardware sales. There are no 5 year mobile app business models being built on iOS - just ask the VC's. It's all moving to the Enterprise and services which scale across multiple screens.


     


    Welcome back to the web.



     


    Why should people answer the questions of a useless troll who creates a new account and posts nothing but garbage? You clearly have no idea what you're talking about and are simply trying to start $hit.


     


    Another loser to add to the block list, and it only took you 4 posts to get there.

  • Reply 25 of 28
    richlrichl Posts: 2,213member

    Quote:

    Originally Posted by Peter Cranstone View Post


    A thought.


     


    How about an analysis of the exact number of mobile app developers, the average sale price and the yearly revenue generated by the app. With a million apps and an average payout of $7 billion a year that equates to $7,000 per developer if there were a million developers which their aren't. So i'd guess that the average amount a mobile app developer makes a year to be about $20k. Right around minimum wage.



     


    App development is a gold rush. If you're talented or lucky then you can strike it rich. Most companies are lucky to break even though.


     


    Selling spades and tents is where the reliable income is. :)

  • Reply 26 of 28
    Then how about you answer the question - what sustainable business can you point to that is built on iOS app?

    Sure Wells Fargo can employ someone to create an app for free and then use that as part of the WF service. That's irrelevant to the question I posed. Out of the million apps on the app store how many are generating 'measurable, sustainable, profitable revenue from volume'? 

    Find just one that generates enough revenue to support 10 programmers? When you've found one, find 10 more. Surely out of a million apps there must be a profitable company behind them?

    The only people making money from the app store is Apple. The rest just drives hardware sales. There are no 5 year mobile app business models being built on iOS - just ask the VC's. It's all moving to the Enterprise and services which scale across multiple screens.

    Welcome back to the web.
    1) You act as if a "make iOS app = print $$$" is a logical measuring stick of a new business category which is kinda misguided.
    2) developers large and small still have to think about and implement decent marketing to make money like any other company
    3) you might want to also look at freemium apps which would be a revenue stream for developers not taken into account
  • Reply 27 of 28
    hill60hill60 Posts: 6,992member

    Quote:

    Originally Posted by Peter Cranstone View Post


    Then how about you answer the question - what sustainable business can you point to that is built on iOS app?


     


     



     


    Rovio, the Angry Birds franchise.


     


    "WHO WE ARE


    Rovio Entertainment, founded in 2003, is an industry-changing entertainment media company and creator of the globally successful Angry Birds franchise. Angry Birds, a casual puzzle game, became an international phenomenon within a few months of its release and is now the number one paid app of all time. Rovio has launched eight blockbuster games so far for different platforms: Angry Birds, Angry Birds Seasons, Angry Birds Rio, Angry Birds Space, Angry Birds Friends, Amazing Alex, Bad Piggies and Angry Birds Star Wars.



    Following this success in mobile gaming, Angry Birds has expanded rapidly in entertainment, publishing, and licensing to become a beloved international brand. Rovio has grown alongside Angry Birds, and the multifaceted entertainment house currently employs more than 500 professionals in its headquarters in Espoo, Finland, and offices in Tampere, the United States, China, and Sweden.


    Rovio’s reach extends far beyond Finnish borders, with current employees representing more than 30 nationalities. As a rapidly growing company with plenty of opportunities for go-getters, the company is especially attractive to young people who are ready to show their mettle. Rovio regularly brings new talent to the field through training programs, partly in cooperation with universities. 

     


    Rovio has created a world-class entertainment industry in Finland and turned it into a significant local employer. With an open organizational culture that welcomes new ideas and suggestions for improvements at all levels, Rovio is constantly looking to innovate and grow along with its employees."


     


    Firemint - go Australia!


     


    "About Firemint


    Firemint is a Melbourne, Australia-based studio of almost 60 people dedicated to making truly great games. Best known for worldwide hits Flight Control and Real Racingon iPhone and iPad, Firemint was founded by Rob Murray in 1999 and developed over 30 games on commission from publishers before switching to self-publishing original titles.


     



    Flight Control




    The release of Flight Control on March 5, 2009 spearheaded the company’s rise to prominence as an internationally-recognised independent developer. Flight Control’s intuitive touchscreen controls, appealing visuals and addictive gameplay saw it ascend the sales charts and become one of the most successful iPhone games ever, with over 4 million sales to date. It is now available on a number of platformsincluded iPad, PC, Mac OS X, DSiWare, Android and PlayStation 3."


     


    ...and a few more.

  • Reply 28 of 28
    asdasdasdasd Posts: 5,686member

    Quote:

    Originally Posted by Peter Cranstone View Post


    The only question is - what is a 'living'. 


     


    A second thought - if 20% are making a living then what is the percentage that are building a sustainable business via the App store. My guess is about Zero. And herein lies the problem - Apple extracts ALL of the profits and leaves nothing for anyone else. This is neither sustainable for Apple or for the developer ecosystem. You cannot build a business off of Apple, but you can build a business off of Microsoft. 


     


    At some point Apple will have to return the profits to the ecosystem or think up a new screen to entice users to buy. So far there is no compelling financial reason to be an Apple developer.


     


    It's a case of Apple winning the battle, but losing the war. Balmer was right - eventually it boils down to developers being able to build a sustainable business. Apple hasn't met that metric.


     


    Yet.



     


    The app business is a bit like the website business where


     


    1) Most websites don't make money - but work as promotion, or as a service to the customer.


    2) Some make loads of money.


     


    and the bedroom developer is not really the way to look at it. Most people work for businesses.

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