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mobile gaming and revenues
05 March, 2014
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Mobile Gaming’s Dirty Secret

Mobile gaming is a major growth industry. Revenues and profits are soaring and the most successful companies are attracting valuations in the billions of dollars. However the market dynamics are such that very few can succeed and those that do have incentives which are a long way from maximising fun for players. Where are all the revenues coming from? Is the market fundamentally broken? If so, why aren’t the platform owners trying to fix it?

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24 February, 2014
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How We Learned to Built Hardware, the Agile way

I ‘m part of a hardware research group at Telefónica Digital called “Physical Internet Lab”. Three years ago we started a small group under the Emerging Technologies area of the company focusing on the Internet of Things. The commitment of the group was (and is), in ambitious terms, “to democratize the Internet of Things” opening it to as many makers, developers and users as possible.

We wanted to work at the crossroads of the Internet, the Things and the People. But our development skills were almost 100% software related. In the process we built a team skilled on all three sides. And we figured out how to do agile hardware.

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19 February, 2014
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Flappy Bird vs Angry Birds – a tale of Hobbyists and Hunters

Why did Flappy Bird become a flappy Icarus, crashing after flying too close to the sun, and not a new Rovio? In truth, Nguyen and Rovio represent very different groups of developers. Their motivations are not at all alike, and so neither is their behavior.

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12 February, 2014
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App monetisation tip: Go for niche markets, not user reach

Mobile apps have enabled some developers to reach unprecedented scale in an incredibly short time. The companies that do this best have hundreds of millions of users and are typically valued at billions of dollars. The winners in this battle for mass market attention and appeal are either backed with millions of dollars in venture […]

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05 February, 2014
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Developer Economics: Ecosystem wars drawing to a close

Welcome to the brand new Developer Economics report! Now in its fourth year and 6th edition, the latest Developer Economics survey reached over 7,000+ developers across 127 countries, setting new standards in developer research. Get your free copy here and read about the movers and shakers in the app economy. Dive deep into our rich […]

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pyramid of scarcities
21 January, 2014
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Mobile Gaming And The Pyramid Of Scarcities

According to Distimo’s latest report, apps with “freemium” business models, i.e. free apps monetized by in-app purchases (IAP), have dominated revenue charts in 2013. This spurred me to take a deeper look at the “economics of free” and explore new opportunities for innovation in these business models. The Economics of Free Let’s begin by taking […]

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13 January, 2014
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The Android Monetisation Myth: iOS still rules the west

Revenues from Android apps saw tremendous growth in 2013. If you look at the headline global figures then revenues from Android apps on Google Play are rapidly closing on those from iOS apps on the App Store. It looks extremely likely that 2014 is the year that Android will overtake iOS in total app revenues. However, dig a little deeper and you’ll find the distribution of revenues, both geographically and across apps is rather different. If you’re planning your platform strategy for this year then a dive into the details might prove invaluable.

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24 December, 2013
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4 Reasons Not to Build Enterprise Apps

In an earlier post we showed how enterprise app developers make 4 times the revenue of those developing consumer apps on average. Targeting enterprises with apps can be very different from building consumer apps and not all developers prioritise revenue, so it’s not for everyone.

Do you want the indie developer lifestyle, or to build a company? What sort of contact do you want to have with your customers? Do you like consulting work or do you prefer to build your own products full time? Do you have a strong development platform preference? Depending on your answers to these questions you might find one of the 4 reasons below keeps you focussed on consumer apps for the foreseeable future.

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16 December, 2013
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Why are you still building consumer apps? Enterprise pays 4x more!

Consumer apps are the focus for all the excitement and media attention in the industry. Enterprise software is dull and boring, right? Not if you care about making money! Besides, what’s so dreary about reinventing the way people work in a mobile and connected world?

“Wait”, I hear you cry, “what about BYOD and the consumerization of IT? Surely the future is all about selling computing tools directly to professionals?” Well the data from our last Developer Economics survey says that future isn’t here yet. In any case, if you’re going to collaborate with colleagues then you all need to be using the same tools, so most of the time the company still has to choose and buy them.

We asked developers which type of customer they primarily targeted from a selection of Consumers, Professionals, Enterprises, Other and Not Sure. Using this data we can compare the fortunes of developers serving each of those audiences.

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19 November, 2013
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Are you using the right app revenue model?

The most popular revenue models appear to be those that are easiest to implement. The developers using them tend to have lower revenues. This may be due to greater competition or it might just be a result of less sophisticated app businesses producing less valuable apps. There are some interesting differences between platforms but subscriptions appear to be a relatively untapped gold mine everywhere, although maybe not for everyone.

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