Your Mobile DevelopersWe are a team of mobile developers who focus on enterprise apps that bring a lot of profit, and now we’ll explain why.
Enterprise Development Pays the Bills
The Two Poles of iOS Development IncomesIt may come as a surprise to you, but more than a half of all mobile developers are struggling to pay the bills with the insubstantial incomes they receive from application development, according to the same statistics. And only another half earn less than $1000 for an app a month. App economy revenues are polarizing. Poor incomes are not distributed across developers evenly, as the study claims. When it comes to iOS designers, above 35% are not getting enough income, earning less than $500 a month. As for those who do not suffer from low incomes, they make for approximately 40%, making more than $5000 a month, building apps for the Apple’s mobile platform.
iOS and Android in the Emerging MarketsIt is clear that iOS is the platform that could bring your software agency to success, if you know how to harness it. What is even more interesting is the fact that development firms that build Android apps as an addition to iOS earn more from Android than the competitors who only focus on Android. On the other hand, it does not really mean anything. Developers who focus on Android largely operate in emerging markets, while iOS developers from the very beginning target higher end audience, placing high price tags on their products. Android helps emerging markets to create a healthy environment for smartphone apps, while iOS only takes advantage of the rich. It is high time Android developers harnessed the enterprise sector if they want to overcome the income gap somewhere in the nearest future.
Customer-Oriented vs Enterprise SoftwareThere are many ways to earn money on mobile apps: paid download, in-app purchases, premium accounts, unlocks and other monetization strategies utilised yb app publishers. As for the enterprise, it, on the other hands, relieves you from the need to actively market and promote app to increase conversion because they buy in bulk. In other words, corporations need mobile apps to increase internal productivity, so they pay the developers to tailor bespoke software that will be distributed for free across the employees of the company.
Enterprise Means Steady IncomeDevelopers who offer off-the-shelf business apps for enterprises also boast steady incomes distributing their software with licensing fees that companies pay monthly or yearly. However, no matter what option app developers choose, it is without a doubt a more sure-fire way to pay all the bills and even more than building consumer apps for general public. “An increasing fraction of developers now primarily target enterprises rather than consumers, their tactics differ and they’re much more successful” says the report.
App Usage StatisticsStill have doubts? Let us check out what apps consumers like to use most. Let’s say a US user downloads 25 apps, he or she will abandon 25% of them after the first use. The statistics says, that of the apps that remain on their smartphone, most popular are mobile games (approximately 30%), Facebook (15%), messengers (10%), Twitter (2%), utility tools (10%) and YouTube (5%).
Why Enterprise Wins
Web Apps or Mobile Apps?Another major problem that concerns many developers is that the market is too saturated. The highly competitive mobile environment does not welcome newcomers. On the other hand, web is much easier in that sense. This becomes a reason why more and more app developers whift their focus from native smartphone app developers to web-based apps. Many say that web is a more friendly environment. But why is that so? Smartphone ecosystem is much younger and has more possibilities, why web apps existed since my birth and must be outdated? Well, it is certainly not because of the amount of apps exceeds the number of websites in the internet.
What Is Saturation?Now, let’s make it clear what the market situation means. If you like chemistry, you probably know that it is a state when a substance can no longer comprise any newer components. For instance, if you keep stirring sugar into water, at one moment it reaches a state where it will no longer be able to dissolve, simply sinking to the bottom of the cup. The water simply cannot absorb more. The same with the mobile app market: it has had enough and cannot absorb more applications, while web is still capable of absorbing new sites. Why has it happened and can we overcome this?
The App Market Is ToughAn independent study of app engagement has been carried out by means of deep linking. More than a billion smartphone and tablet owners use apps every day. The researchers dug into the problem and came to interesting results. They analysed the traffic that came from more than a 1000 apps that boast the top ranks in Apple’s App Store and the data they got seems not very optimistic. The popularity of apps falls drastically from the app that holds the first place down the line. As a matter of fact, an app that holds the tenth place at App Store only sees a tiny fraction of traffic that the most popular app - Facebook - boasts. And if you take the hundredth app, not mentioning the thousandth, its rates fall as low as 0.2%.
The Frightening StatsBut look back. Approximately 50000 new apps are published to App Store on a monthly basis, and that is not taking Goolge Play into account. Making a simple mathematics, we come to conclusion that the chances for any of these apps to reach the top 1000 are close to zero, but even if they manage to do this, they will not get enough traffic to sustain their business. And all these apps are counting on the same monetization models as a source of income. According to recent statistics, 90% of App Store revenue are generated by only 1% of all publishers. Is not it frightening?
The App Store RuleIn mathematics, this is called power laws, and these the basic rule is that only around a quarter of all distribution creates any value in business - the rule is known as pareto principle. In more general terms, the power law describes why only a small percentage of the distribution brings value. However, this rule does not work in the reality of the app marketplace, where only few apps enjoy high traffic and incomes. And the figures are not anywhere close to the 80/20 proportion. App Store is unique with its 99/1 proportion where all value is concentrated in the top 0.00001%. Congrats, we have just invented a new formula.