The Harsh Reality of Mobile Investments

Shani's Business Review (SBR)

Roughly a third of the startups I see in a given week are mobile apps. Some of the most recent ones include a gamified alarm clock, a mobile app to manage one’s online brand, one that monitors your sleeping pattern and numerous niche social network related apps. Not to mention the number of events related networking apps. Some of them are in the tens of thousands of downloads. Some crossed the 1M downloads line.

The harsh reality is that very few mobile apps get funded.

The economies of mobile apps are just not compelling:

  • 89% of mobile app downloads are free.
  • 35% of mobile apps will generate total revenue of $1-$500 (Vision Mobile’s Developer Economics 2012 study).
  • Average annual revenues per app: Android – $33K, iOS – $44K.
  • Average total revenue per download is $1.19 on Android – Ice Cream Sandwich (September 2012). I suspect that number is double on…

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