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Gartner: More than 99% of apps don't make any money

There are countless free and paid apps available, with the majority of apps not making any money.

Published Jan 15, 2014 4:46 AM CST   |   Updated Tue, Nov 3 2020 12:19 PM CST
0 minutes & 48 seconds read time

Less than 0.01 percent of consumer mobile apps will make money and be considered a hit by developers by the end of 2018, according to research firm Gartner. Almost 90 percent of paid apps are downloaded less than 500 times every day, earning less than $1,250 per day.

Gartner: More than 99% of apps don't make any money | TweakTown.com

"The vast number of mobile apps may imply that mobile is a new revenue stream that will bring riches to many," said Ken Dulaney, Gartner VP and analyst, in a statement. "However, our analysis shows that most mobile applications are not generating profits and that many mobile apps are not designed to generate revenue, but rather are used to build brand recognition and product awareness or are just fun."

Mobile app use grew 115 percent year-over-year from 2012 to 2013, though 94.5 percent of all mobile apps downloaded by 2016 will be free apps, Gartner predicts.

Mobile users tend to listen to recommendation engines, friends, social networking, and advertising to find new apps available - a significantly faster, more reliable manner to find apps - as there are thousands of different programs available.

It's up to app designers to know when to release an app for free to build a fanbase, or to put it up for sale and try to turn a profit.

An experienced tech journalist and marketing specialist, Michael joins TweakTown to cover everything from cars & electric vehicles to solar and green energy topics. A former Staff Writer at DailyTech, Michael is now the Cars & Electric Vehicles News Reporter and will contribute news stories on a daily basis. In addition to contributing here, Michael also runs his own tech blog, AlamedaTech.com, while he looks to remain busy in the tech world.

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