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Business Potential of Mobile Applications

Friday, 18 Jul 2014

Mobile Devices Opportunity

Today mobile devices (phone, smartphone, PDA, tablets) are necessary and it is very difficult to imagine our life without such devices in the pocket. Nowadays mobile devices are able not only to make calls, but also to provide the possibility of communication and collaboration with family, friends, office and work all over the world. Nowadays any mobile device provides wide range of features: messaging, gaming, listening to music, watching video, social networking, shopping, web browsing, news consumption, etc. That is why smartphones and tablets became more popular during the recent years.

Thus mobile devices industry evolved a lot and permanently expands: mobile phones, smartphones, tablet sales, mobile Internet subscribers and app downloads — all predicts bright future for the industry.

First of all the figures are impressive:

  • Today total number of mobile subscribers is around 5.3 billion (vs. 2 billion of desktop Internet users) and 30 % of the total amount represent smartphone users;
  • As for mobile game industry the analysts suggest that the global mobile games market will hit $9.6 billion by the end of 2011 and mobile gaming revenues will surpass $16 billion by 2016;
  • Canalys (on June 2011) predicts that direct revenue from the sale of applications, in-app purchases and subscriptions across smartphones and tablets will be more than $14 billion in 2012 rising up to $36.7 billion by 2015;
  • Google’s gross revenue from mobile advertising is over $1 billion per year; Android is forecasted to become the number one smartphone operating system in 2011 (38.5% of market).

Increasing smartphone sales, growing tablet market and constant achievements in mobile device and game development show that this industry will become more interesting in the coming years.

More and more people prefer to use mobile devices for Internet access comparing to traditional desktop computer. As this trend continues, the mobile devices user base constantly increases; and hence the manufacturers of mobile phones and communication devices are working tirelessly to advance the technical and functional features and flexibility of their products and services.

Mobile Application Market

The mobile applications are applications working on mobile phones, smartphones, PDAs, PPCs or tablets. Mobile apps are usually preinstalled on the device or could be installed by the user with the help of network, infrared connection, Bluetooth, WiFi, 3G or memory card and USB cable.

Thus mobile devices market grows as well as mobile applications market. Today, mobile applications development is the most potential market which is focused on any small, medium or large mobile applications. People want to buy travel tickets, order food, buy movie tickets, pay debts, access their social networking sites, edit documents, share photos and play games with the help of their mobile phones.

Most mobile devices have basic applications, but you can download thousands of other applications to customize your mobile device. To run successfull business far from the office, it's important to have shared mobile business tools to view and edit Microsoft Office documents (e.g.QuickOffice), powerful organizers (complex schedules, contacts etc.), online services (e.g. Facebook, LinkedIn, Twitter), online conference (e.g. Skype), maps (e.g. Google Maps), Business cards (e.g. Google Goggles, Bump) etc.

Here are some facts about mobile application:

  • The most popular mobile game Angry Birds cost only $140 000 to create and has already generated $70 million revenue;
  • The first half of 2011 revenue of Gameloft is €76.8 millions;
  • The App Store includes over 100 000 games;
  • in October, 2011 Apple announced that over 18 billion of applications were downloaded from the App Store;
  • There are over 500,000 apps available at the App Store designed specifically for the mobile device (over 100,000 applications for iPad);
  • On average US feature-phone users have 10 applications on board and smartphone users have 22 apps (of which iPhone users have around 37 applications);
  • Facebook leads among mobile social networks with about 46.5 million unique mobile visitors during 2011;
  • Twitter has about 11.4 million mobile visitors;
  • The most popular categories of mobile apps are: games, news, maps, social networking and music;
  • The most popular apps across all smartphones are:
  • BB messenger - Whatsapp
  • Social app – Facebook
  • Business app - Google Maps and The Weather Channel
  • Game - Angry Birds.

Apps which improve access to information and provide simple, elegant, impressive features and capabilities will attract users’ attention. This ensures your mobile application to be top popular.

Mobile Applications Benefits

  • Access to mobile application from anywhere in the world 24/7;
  • Easy entry to this market – average cost for simple and useful mobile application development is about $10 000, but revenue could be up to $1 million and more;
  • Easy earnings with the help of distributing your application by one of the biggest online stores: App Store, Android Market, Nokia Ovi Store, BlackBerry App World;
  • Cost effective marketing tool - big companies have already seen tremendous potential of mobile games and social services, allowing you to promote your brand with the help of popular mobile applications;
  • Create viral promotion using your fun application;
  • Increase the number of your customers involving mobile users;
  • Great games can appear from anywhere - while EA Mobile, GameLoft ranks are highest in mobile game developers revenue list, hundreds of independent game developers have released smash hits. For example, Rovio’s Angry Birds ($70 million revenue).

The main asked-for types of mobile applications

  • Multiplayer & Social Features
    According to Nielsen research social networking was the fastest-growing category among mobile applications and browsers users growing 240% and 90% respectively year upon year. eMarketer estimated amount of mobile social networks users to reach 39 million in 2010, which is 64% more than in 2009. By 2015, that number is supposed to be more than twice up to 99 million.
  • Tablet apps
    Mintel research found that 38% of tablet gamers play five or more hours per week, while only 20% of mobile phone gamers play that much. Tablet gamers even download more paid and free games. Forrester expects tablet sales will grow from 10.3 million in 2010 to 44 million in 2015 — this augmentation will drive mobile gaming market.
  • iPhone, iPad apps
    Any new device from Apple has permanent sales success of more than 500 000 sold units on the first day of sales. So iPhone 4S selling started on 14 October 2011 and the first three days of sales more than 4 million of iPhone 4S were sold in seven countries. iPhone is bought not for conversation with the help of it but for conversation about it. Thus growing popularity of these devices ensures growth of applications for them. Today over 500 000+ applications designed for the iPad, iPhone, iPod with 18 + billion apps that had been downloaded from the iOS app store are available.
  • Mobile Online Entertainment
    Online mobile entertainment resources are the most popular in the web search of video, music, pictures, online TV, etc. So this content can bring huge profits.
  • Mobile games
    Among many features of mobile devices, the games are most important for any buyers. Mobile game players are mostly casual gamers who play the games for few minutes when waiting for something or being bored. And this mobile gaming market is far more popular than desktop gaming. Recently there has been an avalanche of social games development (distributed in social networks) and growth for popular PC desktop games porting to mobile platforms (such as EA sports FIFA, The Sims, Call of Duty, Need For Speed, etc.)
  • Business mobile application
    Business mobile applications allow customers to contact you easily via mobile device and allow customers to make instant orders of your products. Business mobile applications allow employees to access remotely your business database and simplify the business processes. More and more companies use mobile applications in their business processes (logistics, transportation, ERP, CRM, etc.)
  • Location mobile application
    After rapid growth of Foursquare and Gowalla location-based social networks and after Facebook launched “Places” service, there was expansion of location ecosystem, allowing members to mark their locations using mobile phone and find out where the friends are. It is supposed to become a real mania because of more and more mobile devices are equipped with GPS system.

Revenue Models of Mobile Apps

There are three simple mobile apps revenue models to be used:

  • free with paid extra-version (without restrictions);
  • free with purchase of in-app options, items, currency (free download with in-app purchase options);
  • paid (one-time fee for a full-featured app).

Free or paid is the main question of all digital content today. Either way, price and any potential trade-offs should be clear.

If you post your application to the App store then Apple's share will be 30% and 70% will be your profit. So if a cost of simple and useful mobile application development is about $10 000 then 15 thousand of downloads is enough to pay off development and continue to receive profit (if the price is $1).

At the same time Android applications could be distributed in different ways. You do not have to rely on a single market for applications distribution. You can use any number of third-party application stores (especially in Google Android Market) and form your own distribution networks also - to develop new application stores and place them on your websites.

What We Offer

If you have an idea and you think about mobile application development, we are ready to develop your idea and to make it come true.

Before new mobile application development you should answer the following questions:

  • What's the basic idea of the application?
  • How and how much will you earn?
  • What’s the platform (iOS, Android, Symbian, BlackBerry, Windows Phone/Mobile) of the application?
  • What is the budget for an original design and development?
  • What are the distinctive features of the application?
  • Are there any analogs in the market and what are they?

Mobile application development requires certain skills and qualifications, as well as creativity and experience in gaming industry. Our all-round experience, wide expertise and unique talent allow us to make your mobile application idea come true.

Program-Ace offers to implement any mobile application which will match all needs of any client and any project (from simple to online multiplayer mobile applications). Our brilliant 3D and 2D artists, programmers and game designers realize your project applying best practices and experience. Our team has great experience in mobile development and supports the most popular platforms: iOS (iPhone, iPad, iPod touch), Android, Windows Phone, Blackberry

For more information regarding our mobile development services kindly look through our article:

  • Mobile solutions development — development of best-selling, powerful and feature-rich mobile solutions and games having advanced original interface.

 
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GSN Games is completely satisfied with Program-Ace's technical expertise and the quality of services they provide. We look forward to collaborating with Program-Ace again...

Stuart Lewis-Smith, Senior VP and General Manager, GSN Games

Program-Ace has completely dispelled my concerns. The online project management system is one of the best I have seen...

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Testimonials
Stuart Lewis-Smith

GSN Games is completely satisfied with Program-Ace's technical expertise and the quality of services they provide. We look forward to collaborating with Program-Ace again...

 
Stuart Lewis-Smith, Senior VP and General Manager, GSN Games
Scott Zerby

Program-Ace has completely dispelled my concerns. The online project management system is one of the best I have seen...

 
– Scott Zerby, Vice President at ValuSoft
Tim Ransom

If you're looking for a professional, dedicated, digital development partner, I highly recommend Program-Ace...

 
– Tim Ransom, President at Visual Thunder Media
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