January 14, 2014 Last Updated 9:45 am

Less than 1 percent of consumer mobile apps considered financially successful by their developers, Gartner says

The information technology research company Gartner says that less than 1 percent of apps released will be a financial success for their developers, a situation that it says will only get worse in the future.

“The vast number of mobile apps may imply that mobile is a new revenue stream that will bring riches to many,” said Ken Dulaney, VP at Gartner. “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.”

Gartner says the market is flush with developers launching apps, and the growth of DIY mobile app development platforms means that more are coming.

“There are so many applications that are free and that will never directly generate revenue. Gartner is forecasting that, by 2017, 94.5 percent of downloads will be for free apps,” said Dulaney. “Furthermore, of paid applications, about 90 percent are downloaded less than 500 times per day and make less than $1,250 a day. This is only going to get worse in the future when there will be even greater competition, especially in successful markets.”

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