Think developing the perfect app idea will lead to early retirement? Think again, says a report by research and advisory firm Gartner.
While Apple recently boasted of the $10 billion in apps sold via its store this past year, very few individual developers earn a big payout from apps. Less than 0.01 percent of consumer mobile apps will prove a financial hit for their developers through 2018, a Gartner analysis found.
About 90 percent of paid apps are earning less than $1,250 a day, the firm said.
Gartner pointed to the popularity of free apps as one factor in limiting the financial success of app developers. The firm also said developers should recognize that most mobile apps are not generating profits, nor were they designed to. A number of apps in the marketplace are simply another form of marketing, designed to raise the profile of a brand or product.
“Application designers who do not recognize this may find profits elusive,” said Ken Dulaney, vice president and Gartner analyst, in a statement.
Nearly 95 percent of apps downloaded will be free by 2017, Gartner said.