Does building an iPhone App make cents? sense?

With the boom in the number of apps in the App Store (over 100,000) and total downloads in excess of 2bn … someone has got to be making money … right?

In part, the iPhone does offer a better platform for apps – it’s about to overtake RIM as the leading consumer smartphone, sold more than 34 million units and got some of the highest mobile internet usage rates we’ve seen so far.

It’s not fair to say that Developers, Ad agencies or Brands are making money out of the app store.

The problem is discovery – you have to do a lot to get your app to the Featured or Popular lists and that has got to start with spending money on good PR and a Viral / Word of Mouth campaign. For small time developers and startups, who might not account for these costs – they do expect GOOD PR and WoM to equal GREAT results.

Whatever you spend on building the app and promoting the app is not going to be made back in app revenue, consider that the majority of apps are given away for ‘free’. How does anyone make money?

I attended the NMAlive workshop in London last week which looked at Why You Need an App … I agree with all the presenters, which is you have to do something mobile … but expecting it to be a new revenue stream from Day 0 is misleading.

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