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The Majority of Today’s App Businesses Are Not Sustainable

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Re: The Majority of Today’s App Businesses Are Not Sustainable

#51

I built apps for android, iOS, windows incarnations, and even bb10. In aggregate maybe 25-30 branded apps on the iOS store could make 10k per month. The rest were garbage. The most I ever made was 1m over a year on 7 BREW apps we made. That's right, those old dead handsets had only 20-30 apps in their store and we owned about 20% of the market. What made that possible is that the ecosystem was so bad and it was so ha…

What's "BREW"?

Re: The Majority of Today’s App Businesses Are Not Sustainable

#52
post #31

I feel like to a large extent this is just techcrunch being techcrunch and writing link-bait articles. My thoughts on this: 1) Just about everyone is "interested in making money" from their apps. I'm not sure how they're filtering the developers in the survey, but I'm willing to bet the amount of effort put in, and the actual methods used to "make money" differ wildly among those developers. Apples to oranges. 2) 5-1…

Can't see your email mate... Put it in your "about me" field if you want peopleto see it, the email field is private.

Thanks!

Re: The Majority of Today’s App Businesses Are Not Sustainable

#53

These numbers are actually quite rosy in my opinion. When I built PaperBox (www.gopaperbox.com), our chief competitor was getting about 50K downloads per day - this compared to maybe 50 a day for us back then. We knew we had a better offering - but we also knew that charging right off the bat would shoot us in the foot. Instead, we've opted to go the free route to build our user base & brand, and figure out the busin…

What about Paper? Not only did they charge from the start, they charged a rather high price, and entered a market full of existing competitors, some free.

Unless you are talking about a different Paper, Paper was a free app with an in-app purchase of tools (different brushes) available.

I know this because I downloaded it because it was free and then bought the tools. I wouldn't have tried it if they wanted the (I think) $4.99 up-front.

Re: The Majority of Today’s App Businesses Are Not Sustainable

#54

I built apps for android, iOS, windows incarnations, and even bb10. In aggregate maybe 25-30 branded apps on the iOS store could make 10k per month. The rest were garbage. The most I ever made was 1m over a year on 7 BREW apps we made. That's right, those old dead handsets had only 20-30 apps in their store and we owned about 20% of the market. What made that possible is that the ecosystem was so bad and it was so ha…

What's "BREW"?

http://en.wikipedia.org/wiki/Binary_Runtime_Environment_for_...

Re: The Majority of Today’s App Businesses Are Not Sustainable

#55

I built apps for android, iOS, windows incarnations, and even bb10. In aggregate maybe 25-30 branded apps on the iOS store could make 10k per month. The rest were garbage. The most I ever made was 1m over a year on 7 BREW apps we made. That's right, those old dead handsets had only 20-30 apps in their store and we owned about 20% of the market. What made that possible is that the ecosystem was so bad and it was so ha…

What's "BREW"?

I was wondering the same thing. I had no idea. I am almost certain the commenter is referring to: https://www.brewmp.com

Re: The Majority of Today’s App Businesses Are Not Sustainable

#56

I built apps for android, iOS, windows incarnations, and even bb10. In aggregate maybe 25-30 branded apps on the iOS store could make 10k per month. The rest were garbage. The most I ever made was 1m over a year on 7 BREW apps we made. That's right, those old dead handsets had only 20-30 apps in their store and we owned about 20% of the market. What made that possible is that the ecosystem was so bad and it was so ha…

The "labor supply" side isn't the only factor in downward pressure on the value of apps--it's also the quality of the demand side. People tend to the cheap side when it comes to paying for apps. The result is that each marginal increment of "value" in an app comes with a geometric increase in cost to produce it. It's also a feedback loop: people aren't willing to pay (very much) even for good apps because there are a sufficient number of developers doing it "just good enough" and giving it away for free, and so developers who could make an even better app shy away from doing so since the prospective benefit doesn't merit the risk.

Re: The Majority of Today’s App Businesses Are Not Sustainable

#57
There was a good glib observation I saw today:

"Monument Valley costs $6 less than it's own soundtrack. That’s how dysfunctional app pricing is."

https://twitter.com/gregmaletic/status/493430279122350080

It really can't continue like this. What comes after, who knows.

Re: The Majority of Today’s App Businesses Are Not Sustainable

#58

A majority of today's small businesses are not sustainable either. Isn't it something in the range of 85% of small businesses fail after a handful of years?

That was an interesting thought. I had to look at the numbers a bit. In Sweden in 2012 69,216 companies where created [1]. In all of 2012 7,471 companies were declared bankrupt [2], about 10%. If 85% fail, then another 75% should have shut down voluntarily. That is out of 1.1 million companies of which 888,000 had some turnover last year [3], Can't find the statistics for the year on year growth though right now.

Edit: found the stats. Seems the number of companies have only grown by 10% in total or so in six years [4]. So maybe you are right then.

(all references in Swedish, sorry)

[1] http://www.tillvaxtanalys.se/sv/publikationer/statistikserie...

[2] http://www.tillvaxtanalys.se/sv/publikationer/statistikserie...

[3] http://scb.se/sv_/Vara-tjanster/Foretag--och-myndighetsregis...

[4] http://www.statistikdatabasen.scb.se/pxweb/sv/ssd/START__NV_...

Re: The Majority of Today’s App Businesses Are Not Sustainable

#59
post #49
post #28

Am I to understand from those charts that over 25% of iOS apps make more than $5,000 per month? That sounds like great odds to me! Especially given the amount of garbage in the App Store.

Not so great if it took 10 employees to create it.

Not so great if it takes even one full-time employee to maintain it (and any dependencies it has) on an ongoing basis, either.

Re: The Majority of Today’s App Businesses Are Not Sustainable

#60
post #10

On Windows Phone / Windows 8 this problem is even bigger. No matter how much effort you put in to build the best app in its genre, earning even $100 per month is extremely hard. I know a lot of Windows developers who are serious about building apps for those platforms, and none of them makes $100 per month or more from those apps.

Have you more on this - I assumed winphone would be so limp in the market that no one would develop for it, leading to the big wins for the few that bothered. I am assuming I have been proven wrong by the market. But would like to know

There are a handful that seem to get touted as the poster children for viable Windows app developers. Atley Hunter who has 500+ apps in the ecosystem (currently all phone targeted but a recent podcast mentioned he was moving to Universal development so that they can run on Win 8 too), he looks for trends (like "Don't tap the white tile" type stuff) and then implements them in the Windows Phone store.

Then there is Rudy Huyn, another full time Windows Phone dev that targets the "flagship" type apps that MS is dinged for not having on their platform, think Instagram or Vine before they finally released an "official" app and now Tinder. His MO seems to be reverse engineering the HTTP apis and delivering a client app that works with those services.

I'm not aware of any Windows Phone app developers like iOS's Marco, where a single well executed app was enough to sustain a developer over a long cycle. But I could be missing somebody in one of the other markets, Windows Phone does well in GB, France and Italy among other non-North American markets.

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