Feeds

Think your brilliant app idea will earn some big bucks? HAH. You fool

Beancounter estimates that fewer than 0.01% of apps will be a financial success

Top 5 reasons to deploy VMware with Tegile

Fewer than one in ten thousand mobile apps are actually going to make any money for their developers in the next couple of years, beancounters at Gartner have warned.

Both Google's Play Store and Apple's App Store have over a million apps and games available to download, forcing people to look at recommendations, social networks, ads or their friends to find new apps, rather than trawling through the thousands and thousands available.

Because of this, Gartner is predicting that less than 1 in 10,000 consumer apps will be a financial success.

That might not be the bad result it sounds like, however, since many apps aren't actually designed to make money by themselves - they're just meant to drive folks to companies' products. There are also more and more apps that are free to download, but make money after that by charging for purchases within the app.

"The vast number of mobile apps may imply that mobile is a new revenue stream that will bring riches to many," said Ken Dulaney, veep and analyst at Gartner.

"However, our analysis shows that most mobile applications are not generating profits and that many mobile apps are not designed to generate revenue, but rather are used to build brand recognition and product awareness or are just for fun.

"Application designers who do not recognise this may find profits elusive," he added.

On top of that, with so many free apps out there, developers have to come up with something pretty special to get anyone to part with their cash.

"There are so many applications that are free and that will never directly generate revenue. Gartner is forecasting that, by 2017, 94.5 per cent of downloads will be for free apps," said Dulaney.

"Furthermore, of paid applications, about 90 per cent are downloaded less than 500 times per day and make less than $1,250 a day. This is only going to get worse in the future when there will be even greater competition, especially in successful markets." ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
UNIX greybeards threaten Debian fork over systemd plan
'Veteran Unix Admins' fear desktop emphasis is betraying open source
Netscape Navigator - the browser that started it all - turns 20
It was 20 years ago today, Marc Andreeesen taught the band to play
Redmond top man Satya Nadella: 'Microsoft LOVES Linux'
Open-source 'love' fairly runneth over at cloud event
Chrome 38's new HTML tag support makes fatties FIT and SKINNIER
First browser to protect networks' bandwith using official spec
Google+ goes TITSUP. But WHO knew? How long? Anyone ... Hello ...
Wobbly Gmail, Contacts, Calendar on the other hand ...
Admins! Never mind POODLE, there're NEW OpenSSL bugs to splat
Four new patches for open-source crypto libraries
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.