App market faces problems on generating profit

July 31
6:49 AM 2013

Today, users continued to move away from their personal computers and onto their smartphones and tablets. With the people's need to take businesses, games and social media on the road, a change in hardware and kind of interface would transpire. App market's invasive spread would make everyone think about the profitability of the industry.

By the end of 2013, the app market was estimated to attain earnings of approximately US$81 billion. Analysts' forecast also included an upsurge in profit to US$310 billion by 2016. However, according to Airomo, there were many problems in the app business that would make the industry less profitable. Airomo was a corporation that aspired to streamline the corresponding processes between app owners and app users.

Airomo identified app discovery problem as the industry's biggest struggle. The trial and error discovery would change the average consumer's buying pattern. 26% of apps were utilized only once or were immediately uninstalled. Around 20% of all the downloaded apps were used for more than a week. Only 16% of apps were utilized up to ten times. Furthermore, most of the consumers would prefer free apps instead of downloading an app that was usually worth US$1.50. Because of this problem, app owners were not able to generate enough to pay the expenses of making an app. Airomo said that the solution to the app industry's problem would involve making an efficient app discovery model and allowing the users to access their friends' facebook apps.

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