(Credit: Screenshot by CNET)
Gartner announced some numbers on Monday that sound like good news for consumers but bad news for app developers. According to predictions by the research firm, less than 0.01 percent of mobile apps will be considered financially successful by their developers in the next four to five years.
Part of the problem is the plethora of apps on the market, according to Gartner. Not only are there several platforms that sell apps, but the big hitters — like Apple’s App Store and Google Play — have more than 1 million apps. Rather than sorting through these apps, consumers are increasingly relying on recommendation engines, friends, social networking, and ads to discover new apps.
“The vast number of mobile apps may imply that mobile is a new revenue stream that will bring riches to many,” Gartner analyst Ken Dulaney said in a statement. “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.”