Apps Are Like Taxes

Just like taxes, people aren’t paying as much for apps as what was once thought. According to a recent study 70% of app users pay little to nothing for their app-enjoyment. I would fall in the majority here, I have close to 60 apps on my iPhone (but I use maybe 15 of them regularly)  but I have paid for maybe 3 of them. The app space (in my opinion) has become so saturated that you can find a pretty good duplicate app that is free for nearly ever non-free app. Now I recognize this isn’t true across the board but from my experience I’ve been able to enjoy app-life just fine without opening my non-virtual wallet.  

 

More from TechCrunch:

According to a recent study of US consumers conducted by ABI, some 70 percent of mobile app users spend “either nothing or very little” on or in applications. It turns out that, much like gambling or gaming, the mobile app market of today relies mostly big-spending “whales” to account for a bulk of its direct sales. The highest-spending three percent of all app users account for nearly 20 percent of the total spend in the market, ABI said.

Now, it isn’t that a majority of mobile users are uncomfortable with the idea of spending on apps at all: Two-thirds of app users said they have spent money on an app at least once, and of those people, the mean spend is a healthy $14 a month. But the whale issue becomes apparent when you look at the median mobile spend among those users, which is $7.50 per month. This shows that a small number of “big spenders” play a “disproportionate role” in the overall market’s revenue, ABI says.

 

Source: How’s The Gold Rush Panning Out? (Tech Crunch)

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About Andrew Thrasher

Andrew Thrasher is a Portfolio Manager for an asset management firm in Central Indiana. He specializes and writes about technical analysis as well as macro economic developments.