The 7th edition Developer Economics Report: State of the Developer Nation for Q3 2014 has been released by Vision Mobile and provides a unique insight into the mobile app development industry.
With findings based on over 10,000 respondents from 137 countries, the Vision Mobile Developer Economics Report for Q3 is without question the leading industry report showcasing the latest trends and discusses platform consolidation, languages, consumer vs. enterprise revenues, as well as developer tools and segments.
The Q3 2014 Developer Economics Report tracks the latest developer experiences across platforms, revenues, apps, tools, segments and regions.
This report focuses on eight major themes – each comes with its own infographic:
- Platform wars go local – Global vs. regional Mindshare
- Language ranking – Most popular vs. most actively used programming languages
- Language lock-in – Language mix for Android, iOS, Windows Phone, BlackBerry
- App monetization – App revenues globally, Android vs. iOS, app revenue split
- Consumer vs. enterprise – Revenues for developers targeting consumers vs. enterprises
- Game developers – Revenues for mobile game developers, top platforms and tools
- Developer tools – Revenues of developers using tools, top tool categories
- Developer segments – Characteristics, sizes and revenues of the 8 developer segments
Here are some of the key take-aways from the report:
Platform Wars
The platform wars appear to be ending with iOS claiming the majority of the high-end device market with Android winning the remaining market share almost everywhere else.- While Windows Phone is continuing to gain developer mindshare, the users haven’t yet shown any real affection for the Windows Mobile operating system or Windows Mobile devices.
- Many developers are focusing on fewer platforms with the average number falling from 2.9 to 2.2 over the past 12 months, probably mostly attributed to BlackBerry 10 rapidly leaking developer mindshare, down to 11%.
- HTML5 is continuing to gain traction and popularity with 42% of developers using it as a technology for app development and only 15% of developers still targeting mobile browsers as a distribution platform.
Development Languages
The primary languages developers use when creating their apps are Java with the top spot at 26% and Objective-C for iOS in second at 17% although HTML5 is now the most widely used technology at 42%.- Even though Microsoft don’t control the mobile OS layer, with 14% of developers still using C# as their primary language, they may still have an opportunity to be a force in mobile development.
- A surprisingly high number of iOS and Android developers (47% & 42%) are using something other than the native language on their platforms.
- Hybrid apps, HTML5 apps with a native wrapper are the most popular non-native option for building Android and iOS apps.
App Revenues
The majority of iOS (50%) and Android (64%) of app businesses are not sustainable at current revenue levels that are below the ‘app poverty line’ of $500 per app per month.- 24% of developers interested in making money earn nothing at all. A further 23% make less than $100 per app per month.
- The overall app economy, across all revenue sources, continues to grow however the revenues are highly concentrated at the top end of the revenue scale where there are just 1.6% of developers with apps earning more than $500k per month, and collectively they earn multiples of the other 98.4% of app developers combined.
Enterprise Developers
- While the majority of app developers primarily target consumers (67%), the 16% of developers who target enterprises are twice as likely to be earning over $5k per app per month.
- iOS currently appears to be winning the battle for enterprise adoption and revenues however there are 10% more developers targeting Android in the enterprise rather than iOS, which, on the back of a number of announcements from Google I/O 2014, may seem like a smart decision for the future as Android makes a strong push into enterprise solutions.
- Although traditional leaders in the enterprise arena, Microsoft and Blackberry are seeing very weak adoption for their new platforms amongst enterprise developers due to lack of demand from the market.
Game Developers
Mobile games continue to dominate the app store revenues, yet the majority of game developers are still struggling.- 33% of developers make games however 57% of those games make less than $500 per month.
- When it comes to game development it appears that experience is a critical factor as the more games a developer has shipped the more likely they are to be financially successful yet 70% of game developers have shipped less than 4 titles.
- Games is a multi-platform world with the average games developer targeting 3 platforms versus 1.75 platforms for non-games developers.
- Multi-platform games benefit from cross-platform game development tools with Unity by far the most popular, used by 47% of game developers. The next paid tool, Adobe Air, comes a distant second at 15%
Tools of the Trade
- Third party tools have become a critical part of successful app businesses and there’s a strong correlation between the number of tools a developer uses and the money they make.
- The most popular third party app developer tool are the Ad Networks, with over 30% of developers implementing ads in some way despite this being one of the few tool categories that is not associated with higher than average revenues.
- Cloud Computing appears to be the domain of the more experienced developers with over 40% of developers implementing cloud platforms having over 6+ years experience in mobile apps adopting them.
Without doubt, the app economy is still growing and evolving right before our eyes.
The information in the Developer Economics Q3 2014: State of the Developer Nation Report provides a unique snapshot of industry trends that is invaluable to anyone running or starting an app business.
To download the complete report, visit the Developer Economics website:
http://www.developereconomics.com/reports/developer-economics-q3-2014/
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22 Comments
Mary
Of all the items in The 7th edition Developer Economics Report, I am most interested in items number 1: Platform wars go local - Global vs. regional Mindshare; number 4: App monetization - App revenues globally, Android vs. iOS, app revenue split; number 5: Consumer vs. enterprise - Revenues for developers targeting consumers vs. enterprises; number 6: 6.Game developers - Revenues for mobile game developers, top platforms and tools; and number 7: 7.Developer tools - Revenues of developers using tools, top tool categories.
Michelle
Exactly how many platforms are there for mobile device apps? I thought there were only two, namely the i-phone and Android platforms. But according to Platform Wars' section of The 7th edition Developer Economics Report, 2 to 2.5 are only industry average ranges for the number or platforms, and that is only the ones that are among the most popular. This has proven to be quite the eye opening summary of this industry that is new to many of us.
Kirk
Do the people that write these types of blog posts understand that the common person doesn't understand their language that they write in using things like IOS and 7# in your article as words does not help the common person understand what it is you are trying to get across. I think to better your post you should translate it to English.
Jeff
This is yet another very informative article by Brad Davis. His insight into the app development industry has without a doubt helped me get a jump start into this industry. I have been a traditional web developer since the late 90's, but even an established developer has got to take notice and adapt to the mobile revolution. Nobody can deny that we are in the midst of it and developers have to keep up with the rapid changes that are transpiring.
Sharon
Of all the types of apps that are developed, I find augmented reality apps to be the most intriguing. However, as a person who is just beginning to learn about app development, perhaps this type of app development is too complex a code for a novice such as myself to attempt to develop. Maybe I should just start with simple kinds of apps or maybe I should start by reskinning an app, provided the source code is attainable. I'd appreciate any input.
Charles
One of the more surprising aspects of this industry report Is how little ad network tools are being used in apps. It is surprising to learn that these type of tools comprise only 30% of the usage. I find tha puzzling because it seems that every game app has ads embedded into either the interface or between stages of the game. Maybe there are more types of apps than there are game apps. That could explain the low usage percentage.
Leonard
More than 1.5 million apps are available for download on Google Play, but I was surprised to learn that the store's main source of revenue isn't the apps that you pay for upfront. Business analyst firm App Annie released a report, which shows that 98% of the platform's income in May came from freemium apps. Apps that are free to download but require payment to add levels or other in-game perks may be a good revenue strategy.
Sonya
This was a very interesting post if you are in to that sort of thing. I was reading through it and found some information that would help my son out but other than that I am willing to let him tell me what I need to do rather than try to figure this stuff out on my own. Thank you for sharing this information I will pass it on.
Kendrick
Apparently, there are a lot of misconceptions about the app industry - things that may seem quite obvious, but that are surprisingly different. One of the surprising facts about app revenue is how integral third party tools are to the monetization strategy of many developers. It is important to keep up with the rapid evolution of the industry. Just when you decide to implement one revenue strategy, a new one may come into prominence. Staying current is key.
Debra
The platform wars - the competition to make one the dominant form of app computing - can be one of the most frustrating aspects for an app developer, especially for beginners. It is hard enough to learn one form of programming, let alone two or more. I suppose you could stick to mastering one or the two most popular platforms. I suppose if you are in the business of a service provider, then it benefits you to know all the necessary scripting languages.
Georgia
There is one particular stat that is very interesting: 70% of game developers have shipped less than 4 titles. If experience is a key factor in how successful a developer / company is at generating revenue, then what can be attributed to the 70%? Is this an indication that the app development industry is so vast and saturated that the amount of first time / novice developers outnumber the experienced developers? If so, it could be a bad sign.
Sandra
I have been doing so much reading about app development that I am beginning to feel burnt out about it. This makes me wonder if I would become burned out sooner than later if I decide to fully delve into mobile app development. This is like learning programming all over again, and I recall how tedious that felt. I assume there is a way to profit in this field without having to learn how to code.
Rose
If what I'm interpreting from the stats I have read is right, the lower income, underserved market that can't afford Apple products is open for Google to disrupt. IDC has forecasted an average smartphone selling price of $335 this year, which is nearly half the price of an iPhone 5s. As the iPhone price premium grows relative to Android, the differences between what Apple and Google offers to consumers and developers has narrowed significantly.
Charles
Each time that I download a new app on my iPhone, I expect it to make my life simpler, solve my problems efficiently and make it easier for me to get through my day. Ninety percent of the time I'm disappointed, for the simple reason that many developers ignore the fundamentals of user-experience design. if the app has to tell me how to navigate from one screen to another or what each button means and does, it's lost me completely.
John
You have done a great job of putting the information together for this post and it looks great as well. I am going to share this with my classmates that would be interested and I am sure they will be happy to leave a post as well. Keep up the good work you really nailed it with this article and the information is beyond what is available.
Andrew
Leonard is certainly not alone. I suppose there are many startling statistics that have been brought to light by the Q3 2014 Developer Economics Report From Vision Mobile. Many of us, if not the majority of us have been surprised by some of the findings of this report. Often times, perception can be misconception and it takes the cold, statistical facts to shed some light on the realities of the industry. This happens all the time in every industry and sport.
Pattie
The section about Development Languages had a surprising twist for me; At first thought, it appeared to me that HTML 5 was a dying language, especially since it seems that mobile apps and devices are steadily taking over the world. However, the report's findings made me consider the fact that blog platforms like WordPress are still very popular, and the premium themes include mobile ready sections, built into the template. So I guess I have a more accurate perspective on this now.
Sharon
The fact that 57% of those games make less than $500 per month is a startling statistic, at least for me. I'd be willing to bet that most peoples' perception of the game app industry is that it is a gold mine for those who know how to design a game. The reality is clearly quite different. It seems that the developers of wildly popular games such as Candy Crush Saga represent the small percentage of developers who are making most of the game app revenue.
Tonia
Apps are either reducing their prices, or going free every single day, and it's hard to keep up with the best deals going. I came across an interesting app called, AppsGoneFree, which pulls together all the top offers for you to rummage through - I guess you can think of it as the bargain bucket of the App Store. Apps featured are hand picked by AppAdvice.com's very own experts, who also write a personal short summary of the app telling you why you need to download it.
Debra
Very interesting but also confusing to the common man with all the technology terms that you have posted in the article. Is there a way to clear it up some so that more people can figure out what you are saying for sure? Great job keep up the good work and keep moving forward with this. I look forward to learning more from you in the future.
Curtis
The most popular revenue models appear to be those that are easiest to implement. The developers using them tend to have lower revenues. It seems to me that this may be due to greater competition or it might just be a result of less sophisticated app businesses producing less valuable apps. There are some interesting differences between platforms but subscriptions appear to be a relatively untapped gold mine everywhere, although maybe not for everyone.
Nancy
Though the app stores continue to fill up with ever more mobile applications, the reality is that most of these are not sustainable businesses. According to a new report I came across, half (50%) of iOS developers and even more (64%) Android developers are operating below the "app poverty line of $500 per app per month. This makes it more worrisome for me in terms of whether I should devote the majority of my time into learning app development.