21.02.2013

Distimo: the mobile market is not for beginners

From August to January, Google Play revenues increased by 107%, during the same period only three new games managed to earn $ 1 million per week, new publishers are hardly entering the market – this and much more is reported in its new report by Distimo. 

The application market is crowded – this is the first conclusion that the company’s specialists make in their research. Indeed, there are hundreds of thousands of applications developed by millions of developers. And their main attention is focused on the games. It is entertainment applications that earn the most money in virtual stores and generate the most downloads.

However, you can be successful in the field of mobile software development by doing other categories of applications. Therefore, it is not surprising that now very, very many people are striving for this market. Only now, as Distimo found out, newcomers are not really getting into the “big league” right now. And this is despite the impressive dynamics of the mobile application market.

From August 2012 to January 2013, Google Play’s daily revenue increased by 107%, and App Store’s daily revenue by 52%. Over the past month alone, the Android market’s revenues have grown by 17%, and the iOS app store by 3%. Yes, despite the more modest dynamics of the Apple store, it still earns significantly more than its Google competitor.

The numbers are amazing. Most likely, such rapid growth will not slow down in the near future.  

Be that as it may, there are very few newcomers in the list of 250 top app publishers over the past four months. Only 2% in the US App Store and 3% in Google Play. Their incomes, respectively, account for even less. 0.25% and 1.2%, respectively

Among the newcomers, the leaders in downloads were companies whose names, with a high probability, will not tell you much: Yau You Music Video Professionals, Easy Tiger Apps and Snapchat. The exception is Wooga, which appeared on Google Play not so long ago. 

Interestingly, new applications (Distimo understands them as all those that came out from October 2012 to January 2013) also do not earn much. However, if they are produced by a large and well-known company and under a popular brand, everything, of course, changes. But still, even in the case of Google Play, their revenues are seriously inferior to already proven applications.

New apps in the American Google Play were responsible for 18% of all revenue. The impact on App Store earnings from new apps was significantly less – 12%. 

Curiously, in the case of the impact on the download charts, the situation turned out to be the opposite. Of the top 300 iPhone apps in the American store, 17% were new. In Google Play, they turned out to be significantly less – 12%.

There were apps on the App Store that collected about 1 million downloads in record time. Temple Run 2, Google Maps and LINE POP were released on the same day and gained 1 million installations in the same day. It was much more difficult to collect $1 million for new applications.

According to Destimo, few managed to do this in a month. The leaders in speed were Angry Birds Star Wars, Grand Theft Auto: Vice City and Temple Run 2. Each of them was able to earn this amount in just one week. Please note that only one of these apps is free. 

Distimo sums up the following: the mobile market today is a very difficult place for beginners in publishing projects. But it is open for new projects.

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