Tuesday, July 22, 2014

The Majority Of Today’s App Businesses Are Not Sustainable

Sarah Perez:

Though the app stores continue to fill up with ever more mobile applications, the reality is that most of these are not sustainable businesses. According to a new report out this morning, half (50%) of iOS developers and even more (64%) Android developers are operating below the “app poverty line” of $500 per app per month.

[…]

The report’s authors detail the specifics around the trend where a tiny fraction of developers – actually, it’s 1.6% to be exact – generate most of the app store revenue.

[…]

Accounting for 47% of app developers, the “have nothings” include the 24% of app developers – who are interested in making money, it should be noted - who make nothing at all.

Meanwhile, 23% make something, but it’s under $100 per month. These developers are sometimes unable to cover the basic costs of development PCs, test devices, and an account to publish apps, the report states. However, in case you’re wondering why so many developers still go iOS first, it’s because those who prioritize iOS app development are less likely to find themselves in this group, with 35% earning $0-$100 per month, versus the 49% of Android developers.

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