Technology research company Gartner says changing consumer habits are likely to impact negatively on mobile app purchases over the next few years.
In a new report, "Predicts 2014: Mobile and Wireless", Gartner says consumers increasingly use recommendation engines, social networking and advertising to discover mobile apps, making it pertinent for developers to promote their products.
"As a consequence, Gartner predicts that, through 2018, less than 0.01% of consumer mobile apps will be considered a financial success by their developers".
Ken Dulaney, VP and analyst at Gartner, notes the vast number of mobile apps might imply that developers are tapping into a perceived highly-profitable market, but this is not always the case.
"Our analysis shows that most mobile applications are not generating profits and that many apps are not designed to generate revenue, but rather are used to build brand recognition and product awareness, or are just for fun," says Dulaney. He notes that app designers who do not recognise changed consumer habits may find profits elusive.
Local context
Fuseware MD Mike Wronski says Gartner's findings may be applicable in SA, despite a lack of local research. "We are having more apps developed in this country, but [revenue] could be limited as more developers enter the market," he says.
However, Dion Samuel, operations manager at mobile app development company Kagiso Interactive, says the South African app market shows no signs of a slump, as local consumers are in a "catch-up phase from a hardware perspective" compared with larger markets. "There is still a very strong demand for consumer apps," he says.
Kagiso Interactive receives up to eight daily queries for new apps, according to Samuel, and - although few advance to the development phase - they represent "a good indicator of interest".
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