Economy of Apps

App industry is showing a high growth rate with huge number of downloads over the years. By June 2014 more than 75 billion apps were downloaded from Apple and 50 billion from Google Play.

Apple paid more than $10 billion to their app developers in 2014 but by the very first week of January 2015 Apples has already spent around $500 million for app development. In the US itself more than 627,000 app developer jobs were created in 2014 and across 155 countries 1.4 million app catalogues were distributed.

Global app economy was worth around $53Bn, in 2012 and the growth rate from 2012 -2016 is supposed to be at 66%. This sis made under the presumption that smart phone penetration in APAC and Latin American countries will grow than ever.

There are more than 3 million app developers in the world and majority of them are Asians. Amongst them android developers are about 71%, HTML5 51%, Apple ios developers are 50%.

As per the records every Indian has 17 apps and South Koreans lead with 41 apps per person. By the end of 2015 Indian app industry is supposed to grow by 66%. Department of Telecom is also trying to make use of this opportunity by setting up an app development centre within 3 years. They have already invested Rs 1000 crore for this purpose. This centre will give importance for local app distribution as Indians will be more interested in local apps.

In 2014more than 9 billion apps were downloaded by Indians compared to the 1.5 billion in 2012. The rollout of 4G network is going to the add the number of download in 2015. Major players in the app industry will be forced to change their business strategies as the competition increases.

At the same time those who think about app development business should also do a profit analysis. There are people more than 60% who said they are below the app poverty graph. Earnings are less and work is not steady and most of the contracts were short term. More than 30% of app developers are working on commission too.