How many apps do you pay for?: Kings of Disaggregation

Continuing from the last week, let us continue to discuss apps. What is the business model for apps? How many apps do you have on your phone? How many do you actually pay for?

On average a user has about 80 apps on the phone and uses 40 of them in any given month. A user spends 3 hours roughly on any given day of the apps, with about 35% of that on social media.

Android apps are growing at the rate of 1300+ per day.

Question is how many of these are paid?

There are some utility apps like banking etc. and some e-commerce apps like amazon that have a different commercial model.

Some apps are free for limited use and you got yo pay for premium features.

But most apps are counting on “ad based payment model”. Think about the “Pokemon Go”? It gained so much popularity so quickly, but what did you pay for it? Not for the app.

There are multiple models such paid app and in-app purchases, but the main model is still ad based revenue and guess who owns the ads? Google for sure.

So Google has adapted itself to integrate so well into the new app based internet and they still remain the Kings in this space.

Google revenues have been growing and the ad revenue is about 85% of their total revenue.

Stay tuned for more next week.