Guest Post By:
David Schwartz, CEO and Co-Founder, Analytical Path
So it’s official. The app business is a $25 billion a year business and growing. There are now well over 800,000 apps on the Apple App Store and over 700,000 on Google Play. Add to that the ones you’ll find on the Microsoft, Blackberry and Amazon stores and now you’re talking millions of apps. As the number of iPhones, iPads, Kindles, Android smartphones and tablets surges, not to mention the new watches, TVs and Google glasses that will also be app-enabled, there is no doubt that we’ve entered a brave new app world.
Of course, not all apps are created equal. Some are fantastically well-designed and offer great features and utility to users, and the rest are either mediocre at best or junk at worst. So sometimes you don’t get what you paid for. Most apps are ‘free’ and the one that do charge cost around $2.99 to $4.99 for the tablet version and a bit less for smartphone ones. And in case you were wondering, if you bought every app on the Apple App store, for example, it would set you back $1.15 million (or $121,000 if you just like the games). But the real action is within the app, what are referred to as ‘freemium’ apps. These apps are free to download and install but offer various virtual items ranging in price from $0.99 to $99.99. This business model has created some super successful apps (especially games) and at the same time has proven to be the bane of many parents – how many of your kids bought those Smurf Berries and chalked up double-digit or triple-digit credit card bills?