It’s no wonder app developers are in such demand. Apps will drive more than $35 billion in revenue by 2017 according to the Strategy Analytics Mobile Apps Revenue Forecast and the app economy is affecting just about every industry.
The figure grows exponentially when factoring in the impact revenue apps have on activities such as a buyer opting for one brand of car over another, purchasing more expensive app-centric toys for their children or engaging more deeply with a company.
Will drive trillions in value for companies
Ultimately, apps will drive trillions of dollars in value for companies.
It was evident at CES that no industry will be immune from app innovations and as a result Strategy Analytics sees four new app-centric product categories impacting 2013:
- Apps to sell new app-centric hardware such as Parrot’s Flower Power Monitor which monitors soil conditions and send reminders via an app
- Apps to differentiate product offerings such as Linksys Smart WiFi Apps which will make routers more valuable through the use of connected apps
- Apps to enhance existing products such as Lego’s incorporation of apps into its popular Mindstorms kit
- Apps for branding/engagement such as Sesame Street’s Qualcomm powered Augmented Reality learning app
According to Josh Martin, Director of Apps Research at Strategy Analytics, “Apps are about more than apps. As the app market matures all companies must make difficult decisions about the role apps will play in their future. Should a company build their own app ecosystem?”
He continued, “What type of return on investment model should be used? How will apps help me differentiate? These difficult questions must be addressed quickly because apps are a disruptive force for companies caught unprepared and good developers become an increasingly rare commodity.”
In some cases, however, some companies may be better off just making their web site mobile friendly, says one expert. Bill Leake, of ApogeeResults.com, who spoke at TechMedia’s Internet Summit in November, says you should get your ground game down before trying trick plays in mobile.
The Internet Summit is sponsored by TechMedia’s upcoming Southeast Venture Conference, which brings a host of national investors and innovative startup companies to Charlotte, NC, in March.
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