Mobile App Business Models

Revenue from mobile apps more than doubles every year. Despite this growth scenario, making a mobile app profitable is not an easy task. In this article we present the three business models of mobile applications.. “Initially, mobile apps gravitated towards the advertising model because it worked well with the open internet, but that’s now changing at a rapid pace and subscriptions are becoming the defacto mobile for some of the most successful apps in the apple ecosystem” said Simon Vielma, Bidwise founder and CEO.. According to a study published by startapp, the total revenue derived from mobile applications was 30 billion dollars last year 2012. The most surprising of all is that 89% of that revenue comes from free applications, and only the pyrrhic figure 11% comes from paid apps.. Where exactly does mobile app revenue come from? Mobile applications can be classified, according to their business model, into 3 types.. 3 types of mobile applications according to your business model. 1- Payment application or "Premium". The user downloads the application on his device after paying the price established by the developer. Depending on the platform, app stores set price ranges that developers select as the retail price. In the case of Apple, the developer / owner of the application corresponds to 70% of the income obtained per download.. 2- Free application. The user downloads the application without paying any money. This business model is very common due to the lack...

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