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Gartner Sees Just .01% of Consumer Apps Profitable by 2018

by on January 14, 2014

Gartner’s report “Predicts 2014: Mobile and Wireless” said free apps were 91 percent of the market in 2012, but their share will reach 95 percent by 2017. As the percentage of paid apps decreases, the number of paid downloads is expected to grow, increasing from 9.2 billion last year to 14.8 billion by 2017, while total downloads are projected to grow to 268 billion from 102 billion last year.  For developers, this means a smaller market slice of apps that consumers are willing to buy, and a more difficult time finding them.

By 2018, under 0.01 percent of consumer apps will be financial successes , which means that the best developers may choose to look to other markets. Additionally, 90 percent of paid apps will be downloaded fewer than 500 times daily, resulting in less than $1,250 per day in revenue.

Gartner suggested this may mean that many developers will create consumer mobile apps “to build brand recognition and product awareness,” or they may be developed “just for fun.”

With so many consumer apps, buyers are making choices based on recommendation engines, friends, social networks and advertising instead of, say, browsing or sorting through the products. This poses problems for developers hoping to market a new product idea.

From → Monetization

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