I started developing iOS apps 5 years ago, which can be loosely equated to 50 years in a different, non-tech industry, where the pace of growth is much slower. As a sign of the warp speed at which things are moving within the app economy, simply consider that when I started back in 2010 there were only 300.000 apps and those were only in the Apple App Store;
According to our latest developer research, 20% of mobile app developers primarily target enterprises. This decision produces a significant boost to their revenues, with 43% making more than $10K per month versus 19% of those who target consumers above the same revenue level. Similarly at the $100K+ per month revenue level we have 18% of developers who target enterprises versus just 7% of those who target consumers. Aside from selling to businesses, government or non-profit organisations rather than consumers, what are these developers doing differently?
For the last two and a half years I’ve been building and selling apps directly on the iOS App Store, however only in 2014 I committed to some substantial effort on this. I’d like to share some numbers about my experience last year and draw some insights about what things went well and which ones didn’t.
Hopefully this analysis will be useful to others and will give me some insight about where to focus in 2015 to grow my app revenue.
A major theme in our State of the Developer Nation reports is an increasingly gloomy picture of typical developer revenues. The vast majority of developers make very little money from their apps. However, there are a lot of developers out there and a decent fraction of them make a good living, some are building thriving businesses on the app stores and a few at the top are even creating multi-billion dollar companies. So, what’s different about the developers that are succeeding financially versus those that are living in app poverty?
North America plays a very central part in the app economy. Not only is it home to the companies that create all of the leading mobile platforms, it is also the largest creator of app revenues.
The app stores created an opportunity for any developer to build their own products and reach a global audience with them. For some developers this offered the promise of an independent app business, giving them creative control of their work and hopefully a comfortable income. Recently there have been lots of posts (great summary list inside) from current and former independent app developers about the state of the market and how much harder it is to earn a living from your own apps.
We have just published a research note with an update to last year’s an European App Economy report. The good news is that Europe’s app economy still accounts for 19% of global revenues and is growing strongly at a 12% annual rate. The bad news is that the rest of the world, particularly Asia, is growing much faster.
The number of app developers using business models that don’t rely on app store payments is increasing. In some cases this is sophisticated app developers adapting to the market.
The app stores contain a range of apps from hobbyist creations built for fun to the carefully crafted output of venture backed startups and mega-corporations that have had millions of dollars spent on their development
The mobile app market has completely overhauled the video game market. In an industry that once required thousands of dollars and a legion of programmers to produce a product, individuals and small groups of entrepreneurs can now produce games grossing millions of dollars from their bedrooms. However, the success of a #1 selling game does […]