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Pages and Pages of Apps - but which did I pay for? (You win if you answer, "None".) |
I’ve been reading a lot of articles and talking to a few
entrepreneurs lately, and the themes are very similar – today’s tech businesses
are rarely successful… only the platforms win in the long-run. That is,
platforms like Salesforce, Facebook, Twitter, LinkedIn, SAP, etc. This isn’t
contrary to what “Who’s
poised to profit in this fragmented, online dating world of startups?” back
from March.
TechCrunch posted yesterday “The
Majority Of Today’s App Businesses Are Not Sustainable”. In it, the article
talks about:
- 50% of iOS developers operate at $500 per month (per app). That’s 64% for Android developers
- 1.6% of developers make more than $500K per month
There’s obviously a lot more in the article. It’s
interesting, though, because you have to wonder how many of these apps they
deem as “Have Nothings” or otherwise are not revenues from the app store itself
(vis-à-vis selling the app), but instead, on a subscription model or otherwise
on the backend not necessarily privy to TechCrunch’s article.
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You can see the large disparities of the app revenues between iOS and Android |
Further, the article does address how many apps are
potentially hobbies for developers or even first-time apps letting developers practice
and get their feet wet. From this standpoint, it’s also easier to see why in
the article, monetarily, iOS dominates as a percentage. Pushing out MVPs or
ideas on Android is simple and easy. iOS apps require a heck of a lot more
curation before being published on the iTunes store. There are guidelines
around styles (what kind of font, where to place buttons, etc.) in addition to
things like having a Dun & Bradstreet Number that must be provided and
adhered to before publishing on iTunes.
Then again, iOS buyers tend to be higher earners anyways. So…
there’s that, too.
What's your exit strategy?
TechCrunch goes on to talk about how most startups these
days are really looking to be acquired rather than build sustained businesses.
I can see that, too. Everyone’s always talking about liquidity events. “What’s
your exit strategy?” is one of the most common questions you’ll get asked as an
entrepreneur. Afterall, investors are looking for returns on their funds, not
necessarily to “change the world” as so many say they want to.
What are your thoughts on the success on the app stores? How
would you describe the disparities between the litany of apps for success and
otherwise?
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