Generating Money from Mobile Apps
A couple of weeks ago I was privileged to attend IOSDEVUK in Aberystwyth. The conference, which is organised by the University of Aberystwyth is a chance for IOS developers from around the UK to come together share ideas and find out what’s new in the world of mobile apps.
One of the most interesting things at the conference was a talk given by Craig Lockwood (@craiginwales) entitled “The state of the Union”. The talk focussed on some fascinating facts which are important to anyone considering developing an app.
In recent years apps have received much publicity in which it is demonstrated that creators have made huge sums of money. This is certainly the case with apps such as angry birds having generetaed in excess of $70,000,000. What I hadn’t realised was that only 1.3% of apps downloaded on android are paid for by it’s user base – this lead @craginwales to the conclusion that “Android Users Are Broke”.
It would a fair question to ask how android developers make their money. In terms on Angry Birds the answer is simple – Advertising. The company generates an estimated $1 million each month. This model is fine for apps that are extremely popular and well used, but what about the lesser known apps …. how do they generate a revenue?
Compare this to downloads from IOS where an estimated 18% of apps are paid for resulting in $2.5 billion paid out to developers.
Whether you have an iPhone, Android, Windows Phone or a dare I say a Blackberry mobile devices are here to stay. More than half of us mobile users now use our phone in place of an alarm clock. 28% of us use our phone instead of a laptop and the iPAD alone is now outselling PC’s from all manufacturers combined. The fact that surprised me most was that currently more iPhones are being purchased in the UK each day than there are people being born!
So why is all of that interesting? For me it demonstrates that IOS devices have the most longevity because they have the most robust financial model. It also re-enforces the potential market if you can come up with a new and innovative app idea. The problem? The more apps that are created the harder it is to come up with an idea that no-one else has done.
So what’s your idea?