Most apps that were on the market first were created for fun. Within a few weeks, clever developers realized that there was an opportunity to create apps that could be of value in the business setting. Direct consumer engagement could now be taken to the next level since the advent of social media platforms. Highly interactive games could now be on a user wherever they went – no more waiting to switch on a computer to access games. And so the mobile app economy was born.
So how does everything work?
Companies are making money from selling apps and from ads within apps. Digital goods and services sold within the apps are making sure that money keeps rolling in. But like any business, there are app companies that don’t have a life-span of even 6 months and go under due to small sales and lack of funding. On the other end of the spectrum there are companies like Zyngathat are raking in millions. These guys didn’t even touch the millions of venture capital they got but made millions from their game, Farmville. This is one of the top apps in the world with over 60 million people worldwide having played it in January 2013. The company has chefs at its officers to ensure that employees are fed lunch in the office – no need to step out for lunch.The business tax revenue that they are bringing to the US, just as one company among hundreds is huge.
An industry that’s worth billions of dollars, the mobile app economy has also contributed greatly to providing the workforce globally with productivity tools, employment and huge contributions to respective country’s Gross National Incomes.
Whilst all this is happening, we can never forget that the app economy depends hugely on efficient technology hardware and software. Whilst Apple was racking in millions weeks after launch with their app store, Google is still to catch up. The huge difference brought by cut-edge software, patenting and creativity. Take that to the hardware that these apps exist on and it’s easy to see that the likes of Nokia are grappling to catch but slowly making their mark. Blackberry – right now, not much can be said considering its co – founder decided to dump his shares and walk away. The competitiveness of this world is insane, highly energizing for those doing it right, keeping them high and deeply depressing for those floundering around trying to find their footing.
Even though app developers feel pressured by technology companies with the new upgrades each year that mean re-writing their apps, technology companies likewise, feel pressured by app developers in ensuring that with every mobile upgrade, there’s no policies or requirements that could exclude apps that bring in the money.
Is the app economy likely to face a crash like any other sector economy at some point in the future?
The trading economy has crashed more than once which has resulted over the years in almost every sector that makes up the entire economy crashing.
Because we are living in a digital age and are never likely to going back to live without mobiles, the probability of crashing is remote but eventually at some point, the business apps will hit a plateau. The entertainment and educational ones are just going to keep getting better, therefore saving this economy from ever crashing – the only one the world of its kind.