Top Menu


Are APP Companies Making Money?

451 Research reported this year that the average Android user downloads 4.1 apps per month, with 3.4 average free apps downloaded. On the iOS side, 451 Research said that the average iOS user downloads 6.2 apps per month, with an average of 4.3 free apps every month. Google claims to have 48 billion app downloads, while Apple is claiming 50 billion downloads.

Last year Google reported over 1 million apps on their Google play, while it’s estimated that Apple offers around 900,000 apps for their iPhone users. Google also announced that there are over 538 million android devices in use. However Apple reported over ten billion in app revenue for 2013, while Google barely hit 1.3 billion in app revenue in that year. Keyword is revenue. It’s estimated out of the two companies 5 billion goes to app developers. Which is a good amount of money, but when you think about the 2 million + apps, the market is clearly saturated.

With so many apps and so many devices out there the question is what are people actually using? And how can an app company make money. With so many apps on the market the average revenue per app company is estimated around three thousand dollars a year. Meaning some app companies are bringing in the millions and the rest are bringing in practically nothing.

If you’re thinking of going into the app development field, whether if it’s for your own business or yourself. This should be really evaluated. The market is saturated and very competitive.

According to a 2013 Forbes article, most mobile apps fail to hold users’ attention for more than 90 days. Music and dating apps have the poorest success rate in this regard; 85 percent of people who install these apps delete them within three months. However, a Neilsen survey suggests that the average mobile device user spends at least 30 hours per month using apps. So, what apps are people actually using? Take a look at these compelling apps that have found permanent homes on mobile devices around the world.


Gamers love touch screen interfaces and the success of the most popular mobile games has proven that people are willing to pay for an experience with the right combination of challenge and pick-up-and-play instant gratification. Many of the most popular apps of all time are games, including the Angry Birds series, Plague Inc. and Fruit Ninja.

Social Apps

Millions of people access social networks such as Facebook every day. If you plan to use one of these services either way, would you rather open a browser and enter your user name and password manually or launch an app and enjoy the service instantly? The Facebook app is the most popular free app in the history of the iOS App Store, closely followed by Instagram, Skype and Twitter. Social apps are thriving and they will continue to thrive as we get more and more addicted to our social network.

Financial Apps

Smartphones have revolutionized the way in which we handle our finances. Today, many banks allow customers to deposit checks simply by taking pictures of them. Financial apps also allow you to instantly check your account balances and transfer money between your accounts. If you have a question, tap a button to speak with a customer service representative. With ApplePay now allowing consumers to pay for purchases simply by waving their phones over sale terminals. Finance apps are needed that’s for certain. The finance field is not ideal for app development companies, it is ideal for financial institutions to throw their hat into the app game, it will market their services.

News Apps

Facing a steady decline in print media subscriptions, news outlets have been forced to move more of their operations online. With news apps, users are able to access the news more quickly than ever — and in completely new ways. The Weather Channel app is the most popular news app in the history of the iOS App Store, largely because of the instant gratification factor; simply launching the app displays all of the relevant information about your local weather on one screen. News sources such as ESPN have also been popular among mobile device users because their apps give you the ability to filter out news that isn’t important to you. You can configure the ESPN app to display only the scores and news for your favorite teams, making the app more useful for many than the official ESPN website.

Entertainment Apps

If music apps fail to remain on devices for more than three months, it’s likely because they don’t offer enough content to keep users interested. Paul McCartney, for example, released apps for several of his most popular albums in 2014. These apps featured the albums themselves along with videos, stories and photographs. They surely delighted McCartney fans, but how long did people actually use them? Not for long, most likely. The most popular entertainment apps such as Netflix and Pandora remain on devices because they offer so much content that it would be impossible for one user to view all of it — much less become bored of it.

Health Apps

Health apps are popular among mobile device users because they provide something most websites can’t: a personalized roadmap to weight loss and better health. Health companies are the ones making the apps. Nu Skin for example has their TR90 app. This app helps market their diet program. This is the trend with health apps.

In Conclusion

App companies might be going away if they don’t figure out how to be more strategic. You will see more app companies that will make their revenue by charging big company’s money to develop their apps. App development companies that exist to charge users will struggle if they’re not already. It’s been reported that App companies aren’t making money and so expect a decline in high quality apps if this is the case.

Small Business Can Newsletter
Small Business Can is run by businesspeople for businesspeople. We share our experiences, successes and failures. Sign up for our insightful (and sometimes funny) newsletter and stay up to speed with all the latest insights.
No comments yet.

Leave a Reply