App store analytics providers have been telling us that almost all of the growth in app revenues in the last year has been through in-app purchases. However is that just because the model has become more popular? Or because revenue has been concentrating at the top of the market, where the strategy is very popular (particularly in free-to-play games)? Probably…

While not all developers are in it for the money, most would like their apps to provide an income and the majority of those struggle to earn revenues that will sustain further development. We defined $500 per app per month as a reasonable global “poverty line”, in some countries this is very low while in […]

One of the most common mistakes developers make when planning the business case for a new app is dramatically overestimating the number of users they will be able to attract, particularly for their first app. The typical argument goes something like this: “My app will be compatible with 400 million devices, if I can reach just 1% of those, that’s 4 million users”. The trap here is…

In our latest developer survey we asked developers about the different screens they target. The results show smartphones are the most popular target, whilst tablets are catching up fast. PCs are most commonly targeted by web developers while TVs are still a niche app market for all developers.

In our January 2013 Developer Economics Report, we revealed that multi-platform developers are better off. Our survey data also reveals, rather unsurprisingly, that users of cross-platform tools (CPTs) target more platforms than those building separate apps for each platform. Of those interested in making money, users of CPTs target 4.33 platforms (3.1 mobile platforms) on average vs 3.46 platforms (2.57 mobile) for those building separate apps. We also know that…

In our latest developer survey we asked developers who use or plan to adopt HTML5 why they do so and also what the technology needs to compete with native alternatives. The results show a tradeoff of increased portability and lower development cost against capability, in the form of reduced API access and a poorer development environment. In this scenario, the key to success with web technologies is taking advantage of their strengths in areas where their weaknesses are less of a handicap.

User analytics services are becoming increasingly important as competition in app development continues to rise. The ability to track how users interact with apps is extremely valuable for both developers and product managers and to some extent acts as a proxy for user feedback. The absence of a direct two-way communication channel between developers and users means that user analytics often provide the only channel from user to developer. 28% of developers use user analytics services overall…

The security features of an app are often ignored in the rush to get a new product to market. We naturally tend to focus more on what an app should do, rather than what it shouldn’t. Making sure that an app doesn’t have security flaws is a difficult and potentially expensive process. There are…

Almost half of developers (49%) in our survey decide which apps to develop based on their own needs. Those same developers end up generating the least amount of revenue per app per month, indicating that they have a lot to learn in how they plan their app business. Naturally, planning a business based on own needs may yield a good customer understanding, but lacks the rigor of market research or of extending proven app recipes into new countries or verticals.

Distimo recently published an interesting report (free, registration required) on how app price changes affect revenue for iPhone & iPad apps. They give a breakdown on the scale of price changes but only give the really interesting results – the download and revenue impacts – averaged across all price changes. The key result is…