Before we can answer this question, how do we define "application"? Commonly known as "apps", a application is software that aids us in doing certain tasks. Some examples would be word processors, web browsers, photo editors, games, and media players to name a few of the more widely used apps. At first glance, it might seem that mobile applications are nothing more than a shrunk down version of their computer counterparts. Screen size is typically and literally smaller, while photo editing and word processing apps tend to have fewer features.
However, mobile applications are much more than just applications shrunk down to fit your mobile device. Yes, they are applications created to be used on a smaller, and mobile platform, such as a smartphone or tablet, but the impact that they have on society, and in particular, business is anything but small. Mobile apps range from being recreational in the case of games, to modifying web services to function better on a mobile platform, to turning our mobile devices into a single device that can replace alarm clocks, organizers, music players, calendars, newspapers, and handheld gaming devices among others. They open new doors for new and existing businesses, as they can be sold as products, used for advertisement, to collect information, and the wide range of apps as well as their mobile nature allows us to easily incorporate them into our lives.
Wait, a moment, companies can collect data from consumers who use applications?
Indeed, according to OnGuardOnline, "Some apps may be able to access your phone and email contacts, call logs, internet data, calendar data, data about the device’s location, the device’s unique IDs, and information about how you use the app itself. Some apps access only the data they need to function, but others access data that’s not related to the purpose of the app. If you’re providing information when you’re using the device, someone may be collecting it – whether it’s the app developer, the app store, an advertiser or an ad network. And if they’re collecting your data, they may share it with other companies."
But not all mobile apps are out to steal your information date of birth, your favourite colour, or find the name of the city where your grandma's great uncle adopted his first llama-some just openly ask for you to fill in those blanks.
That's right, some honest mobile apps ask for voluntary consumer participation, in the form of surveys, or polls. In reality, pulling information from a mobile device lacks a lot of specific information that companies want to know, such as your favourite cereal, how frequently you eat that cereal, and where you typically buy that cereal. The existence of the option to have a mobile survey created by companies such as Canadean, proves that organizations do realize the need for surveying consumers on specific topics, and that there is a market for creating and implementing these mobile apps.
Organizations also see that surveys on a mobile device are not only much more convenient for consumers as opposed to the traditional pen and paper, but they also get higher consumer participation and more data at a similar, or lower price. There may be controversy surrounding data collection, and mobile apps, but regardless, they are still a goldmine of relatively cheap information for companies, especially for the larger companies which spend millions upon millions on studying their market.
However, according to the data that was plotted out by the contributors at wikipedia, accounting for just Apple alone, the number of apps available, and the numbers of apps downloaded are both increasing over time.
So despite the fear of our privacy and personal information being compromised, many people will continue to use mobile apps and contribute to the quickly growing market for mobile apps. Some apps, such as free game and tool applications are paid for by advertisements-organizations are able to reach their brand out to their target audience by having their banners incorporated into these apps, while the developers of the apps make revenue off of advertisement contracts. Others aren't free and require the consumer to purchase the rights to use the application. Mobile friendly sites, on the other hand, make it easier for potential customers to browse and potentially make purchases, or just be informed about a company's offerings and sales, no matter where they happen to be.
Isn't the world of apps and the markets for apps just a world of all sugar and spice, and everything nice with no cons, then?
Perhaps in another world. In our world however, developing apps, like with almost everything else, costs money. For a basic app, we might be looking at somewhere in the 10k-30k range, while high end apps can go into, and above the six-figure digits. Along with those price tags, mobile apps might not 'make the break' and earn a profit. Competition in the market of mobile apps is fierce - almost every app that needs to be paid for has a free alternative for consumers. Then those free apps need to rely on having enough consumers see, or click on ads in order to make a profit, if not break even.
Furthermore, mobile apps, like their computer counterparts are limited by the operating system which they were created for. Unlike their computer counterparts, the pie is not largely one over the other as in the case of Windows and iOS, as the market for mobile operating systems and apps is still fairly new and competitors do not feel the need to exit the market just yet. On the same note, despite the statistics in the table below, there is still a chance that Android could lose their spot as the most widely used OS - just like how the iOS did.
| Worldwide smartphone market, by operating system, by 2011 global sales according to Canalys | |||
| Operating System | Shipments 2011 (millions) |
Market share 2011 | Annual growth |
| Android | 237.7 | 48.8% | 244% |
| iOS | 93.1 | 19.1% | 96% |
| Symbian | 80.1 | 16.4% | -29.1% |
| BlackBerry | 51.4 | 10.5% | 5.0% |
| Bada | 13.2 | 2.7% | 183.1% |
| Windows Phone | 6.8 | 1.4% | -43.3% |
| Others | 5.4 | 1.1% | 14.4% |
| Total | 487.7 | 100% | 62.7% |
| Source: Canalys (Feb 2011) | via: mobiThinking | ||
Rather than just create a mobile app for only the currently most used platform, many companies choose to develop apps for multiple operating systems. For these companies, the additional cost of negating the potential of their app becoming obsolete is a worthwhile expenditure, while others are either comfortable with, or intend on targeting only users of certain operating systems.
So while the world of mobile apps isn't all happy and joy, it also certainly isn't full of doom and gloom. Mobile apps are still relatively new, but they are quickly increasing in popularity and usage. A recent survey by tech trend site gigaOM suggests that US mobile applications market will grow from $6.8 billion in 2011 to $25 billion by 2015, quadrupling in four years time. The fact that mobile apps are no longer solely bound to phones attributes to the growing market, as consumers can download them onto tablets, and more recently, PCs with the introduction of Windows 8.
However, smartphones and tablets will likely continue to be the main contributors to the mobile apps market, making their sales forecast interesting news.
Where the numbers sold would equal to the number of devices that could download mobile apps, the prediction of sales is pretty optimistic, being ever-increasing. Despite the fact that some people see tablets as "middle ground", in between smartphones and laptops, and feel that there is no good reason in owning one, we can see that a good number of the population do not share this view-rather. App developers have already targeted tablets, with some apps being made optimized for tablets, and a lot of the time, only tablets.
Mobile apps have also let our mobile devices replace other things in our lives with just one item, such as the watch, alarm clock, music player, calendar, game consoles, and even television, all in one device. Take this alarm clock for example:
It's not even a real clock-it's a mobile app.
Point being, by choosing to download apps such as the "My Old Alarm Clock" app, consumers are saying that they would rather let their phone take over that job, than use a actual alarm clock. With each passing day, more and more apps are being developed, published, and downloaded, turning what was once only a communication device into something so much more powerful, and convenient for our daily lives. Apps have become immensely popular, widespread, and are more than likely here to stay.
For further reading, check out some of the links below:
http://mobithinking.com/
http://www.therecord.com/news/world/article/826175--caution-to-mobile-app-users-angry-birds-are-watching-you/
http://www.boston.com/business/innovation/2012/11/01/mobile-apps-upending-video-game-industry/UnPw0t2ZBnyLJ83Iz6uHjK/story.html/
http://www.businessnewsdaily.com/2076-cost-mobile-apps.html
http://www.onguardonline.gov/articles/0018-mobile-apps.pdf
