Changes in the horizons of mobile technology and applications are taking the world by storm, and seriously influencing the economy in general, and business prospects in particular – even that of giant technology companies like Google and Microsoft. As recent as of July 2013, the industry was abuzz with Google and Microsoft shares taking a hit, because the technology giants seem confounded in transitioning their business models to keep up with the huge growth in mobile apps development, mobile traffic, and alternative offerings made by each new mobile app development company.
Google’s average advertising rate fell for the seventh consecutive quarter, and its stock fell more than 5 percent in extended trading. Microsoft experienced the biggest negative gap in 10 years between real revenue gains and what was forecast. While Microsoft attributed some of the loss to writing down $900 million in an attempt to lift the sales of its surface tablets, the real reason is that the company is failing to catch either the market or momentum in tablets and smartphones. Microsoft also attributed its dismal results to falling PC sales worldwide.
The mobile apps market belongs to small third party developers
Even though the iOS and Android apps market is taken to be close to $1 trillion in size, in reality the 100 top app publishers on iOS and Android mop up a collective revenue close to $900 million. The $1 trillion figure going around, actually represents a combined market cap of less than 50 publicly traded companies who are among the top 100 app publishers.
So, what about the rest of thousands of apps in the mobile market, including those on both iOS and Android? These are usually free downloads and service extensions made by companies, either for promoting their services, or for providing their services in the mobile environment.
These apps are not sold, the services are. And those pushing the apps hire third party vendors providing mobile application development services.
With mobile apps ready to help consumers from buying things like ice creams to helping with employment law, the demand for small third party app developers has shot up, as has the revenue stream for fees earned from mobile apps development. Neither the ice cream company nor the law firm keen on promoting services through mobile apps is a mobile app development company. In the mobile apps market, businesses are hiring small third party developers to get their job done and apps developed.
Why the time is right to launch a small mobile app development company
The real revenue streams in the digital world depend upon royalties, ad revenue, software sales, software as services, and fees for services rendered.
Royalties and ad revenue belong to major players, software sales and software as services belong to both large and mid-level players, with some small innovative enterprises in the mix, but fees for services rendered belong ubiquitously to small players and startups.
Mobile computing is opening up new horizons for startups and small businesses, while established tech companies that experienced their greatest successes in the PC environment are feeling challenged and are unable to provide the granular development demanded by the mobile market.
Mobile app experts can afford to create their startups today, because the demand for mobile application development services is far greater than the supply – and the situation is going to continue through the near future.
Like the beginning days of the Internet, when almost any HTML expert with half a brain started their own web development company, today, for experts in mobile application development it is easier to form a mobile apps development company, rather than take a job and trade autonomy for illusory job security. The time is right, and for small mobile apps developers things have never been so good despite technological challenges.
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