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Gartner Predicts App Monetization Will Get Tougher, Less Lucrative

Posted on 1.12.2014

It's not a good time to launch a mobile app as Gartner is predicting that by 2018, less than 0.01 of consumer mobile applications will be considered a financial success by their developers. 

The research outfit is also forecasting that by 2017, 94.5 percent of downloads will be for free apps. What's more, approximately 90 percent of paid applications are downloaded less than 500 times per day (and make less than $1,250 per day. Gartner's Ken Delaney only expects things to get worse in the future when there will be even greater competition, especially in successful markets. 

"The vast number of mobile apps may imply that mobile is a new revenue stream that will bring riches to many," said Ken Dulaney, vice president and distinguished analyst at Gartner. "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 for fun. Application designers who do not recognize this may find profits elusive."

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