Wake up call: 59% of mobile apps don't earn enough to break even

By on May 9, 2012 at 12:35 PM.

Wake up call: 59% of mobile apps don't earn enough to break even

More than half of mobile apps don't earn enough to break even

With Instagram recently having been acquired by Facebook for $1 billion and OMGPOP, makers of Draw Something, cashing in for $200 million, developers are attacking the mobile app space with a renewed vigor. Before jumping head first into a new project aiming to be the next big acquisition target, developers might be wise to look over a white paper recently put together by App Promo. More →

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iOS developers said to earn more from app sales than Google makes from its mobile business

By on October 21, 2011 at 4:25 PM.

iOS developers said to earn more from app sales than Google makes from its mobile business

Developers who build and sell apps for Apple’s iOS platform will collectively earn more money over the next year than Google will earn from its entire mobile business. Following Google’s third-quarter earnings report last week, David Barnard, founder of App Cubby, posted an interesting observation on his company’s blog. Google reported a run rate of $2.5 billion for its mobile ad revenue based on third-quarter earnings, up from $1 billion a year earlier. While that growth is impressive, Barnard noted that Apple paid developers about $500 million during the 89 days between July 7th and October 4th for a run rate of $2 billion. Add to that the money third-party ad networks like Milennial Media and Admob pay out to iOS developers over the course of a year, and “the iOS developer run rate is likely higher, maybe even significantly higher, than Google’s mobile run rate.” More →

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Apple remained king of app stores in 2010; Nokia’s Ovi Store revenue ironically up 719%

By on February 18, 2011 at 12:50 PM.

Apple remained king of app stores in 2010; Nokia’s Ovi Store revenue ironically up 719%

IHS, new owner of research firm iSuppli, has issued its full-year data on app stores in 2010. According to the company’s report, Apple’s market share decreased significantly last year while its revenue more than doubled. The app store pioneer pulled in $1.78 billion in global app sales during 2010, up 132% from the $769 million its App Store earned in 2009. Not surprisingly, its market share dropped from 93% in 2009 to 83% during the period. RIM’s BlackBerryApp World grew 360% year-over-year, pulling in $165 million and accounting for nearly 8% of the market. Nokia’s Ovi Store jumped 719% to $105 million in 2010, and Google’s Android Market was up 862% to $102 million. All in all, the top four mobile app stores combined to reel in $2.16 billion in revenue last year, up 160% from the $828 million of revenue they earned in 2009. More →

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Citibank: Apple’s App Store will generate $2 billion in 2011

By on December 31, 2010 at 11:31 AM.

Citibank: Apple’s App Store will generate $2 billion in 2011

Apple’s App Store has been a driving force behind the revitalized app economy ever since it first launched. According to Citibank, the App Store’s dominance won’t be slowing down anytime soon. In its U.S. Internet Stock 2011 Playbook, Citibank estimates that Apple will pull in up to $2 billion in gross revenue next year via the App Store. And if research firm Gartner’s forecasts are accurate, that number could be low. Gartner believes the global app market in 2010 totaled $4 billion, and that revenues will climb to a staggering $27 billion over the next two years. The growing popularity of smartphones is obviously seen as a major contributing factor to the exploding app market. According to Citibank, smartphone sales grew 53% in 2010 — though growth is expected to slow in 2011 to 29%. More →

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