5 reasons why the app economy still matters

1. The next 2B

By 2015 2.5B mobile users had smartphones. By 2020 there'll be 5B smartphone users coming from new mobile subscribers and existing mobile users upgrading to smartphones as the cost of smartphones come down.

The average smartphone has 26 installed apps. This is pretty consistent. They may not all be used and they change over time.

26 apps across 2B new smartphone users shows that apps are still relevant. This does not take into account that people picking up new smartphones might be in countries where mobile is the primary source of connectivity.

2. New Platforms

Apps are moving from your mobile to becoming bots in your messenger, apps in the car, for your glasses, on facebook, salesforce.com or magento. Focusing your app investment and experience you can refine the user experience to optimize it for the relevant platform.

Here some expamples of these platforms

3. New distribution channels

App owners will be looking to increase the discoverability for their apps, as the iTunes and GooglePlay store struggle with the discovery with 1.5M apps each. Other stores will emerge and be relevant, especially for Android.

Have you got your app on Amazon, Samsung, Yandex, 91.com, Wandoujia and other?  

Just yesterday even in the gym you discover your apps on the Lifefitness equipment

Finally, companies are setting up marketplaces or appcenters which are sort of mini appstore connected to their websites. It allows your customers, stakeholders, partners, employees to find relevant apps

4. Business to developer (B2D)

As goods become information rich they lose their characteristics of products and turn into services.

These goods are providing a continuously growing firehose of data and information that companies are looking to extend to development partners who in turn service the end users customers better while increasing the awareness for their brand or product. 

Take the Jawbone, a fitness tracker, they built 2 apps, exposed the user data and with users permission you can share your activity tracker across other apps to manage your weight diet, runs and health.

 

5. User Experience

Design and user experience will define the download and engagment of apps. 75% of downloaded apps are uninstalled in Day 1.

Businesses are beginning to realize this and investing in the right user experience and looking to offer value to the user of the app. Working with the right developers to ensure a good UX is going to be crucial to success as digital natives now represent the users of your apps.

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