If the App Store presented developers with a potential river of revenue when it launched six years ago, it’s little more than a trickle today. The Financial Times says profits are “squeezed” as the App Store becomes more “industrialized.”
At one time, app developers could earn tens of thousands of dollars for releasing tools built in hours. No more, reports the Financial Times:
Apple says the app economy has created about 1m jobs in Europe and that it has paid more than $20bn to developers since the app store launched in 2008. A report commissioned by Google forecasts revenues from producing smartphone applications to exceed $51bn by 2025.
Yet amid the apparent wealth, the mood is gloomy among the independent coders and small businesses that make most of the apps now available for Apple and Google devices.
Luc Vandal, founder of Montreal app shop Edovia, sums up the feeling of many: “Let’s face it, the app gold rush is over.”
Developers are already facing an uphill battle to earn revenue. According to a report released last month, 1.6 percent of developers earn more than the other 98.4 percent combined. And the bottom 47 percent of engineers earn less than $100 per month.
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Story: http://valleywag.gawker.com/the-app-gold-rush-is-over-1624683455/+laceydonohue