Why we should all pay more for our mobile phone apps
Posted by admin under Apple iPhone For FREE on Friday Feb 12, 2010
Easy to use mobile applications of the kind that Apple is pioneering are a huge economic opportunity to generate growth and jobs but also a conundrum. At a time when the whole world of computing is migrating into the “cloud”, with data stored out there on the web rather than on our computer desktops, the mobile world is moving in the opposite direction: nearly all of these games and services are being downloaded on to our mobile devices.
The result is that we are using our apps – and few more so than me – through dedicated silos rather than on the web. This has advantages, not least because data stored on your phone can be accessed more quickly, but also a big downside. This is partly because you are a prisoner of your service provider such as Apple, but mainly because if these apps were made for the web, then every phone would be able to access them, users would have big opportunities to share and developers wouldn’t have to spend money they haven’t got making multiple apps for incompatible phones.
At the moment, if you want to port an iPhone app to devices running Google’s Android operating system, you have to start building again from scratch. Apps would be much cheaper if they could be built to run across different platforms. Tom Hume, managing director of Brighton based FuturePlatforms, points out that Apple developers have to work in the Objective C computer language, whereas the HTML5 standard requires only minor changes between platforms.
FuturePlatforms operates a Google-style “gold card” system, allowing staff time off to do their own things. One developer used this option to produce an unofficial app of the Guardian for phones using Google’s Android operating system which in some ways is more flexible than the iPhone app (eg, it can download the paper during the night).
Make no mistake, something really big is happening with apps as this amazing device we still call a mobile phone extends its tentacles ever deeper into our lives. Today it is games, social networks, reading, search, location-based services; tomorrow health, work, painting, education, who knows what.
The stats are startling. According to technology research company Gartner, physical downloads of apps reached 2.5bn last year. These were overwhelmingly on iPhone and iPod Touch devices. But since iPhones amount to less than 1% of all phones, you don’t have to be a genius to realise the enormous potential. It could be that Gartner’s predictions of 4.5bn downloads this year and an astonishing 21.6bn in 2013, equivalent to more than three for everyone on the planet, will prove an underestimate.
The good – or bad – news, is that a staggering 87% of these downloads will be free for users. That’s great for you and me, but it is not an obvious way to encourage a growing industry to hire people to make up for the black hole caused by the banking collapse. Many of these “free” downloads will be supported by advertising and others will be corporations promoting their brands. But most will be free because creators don’t think they can charge for them.
At the moment, there is a grave distortion in the balance of power. Most of the money is going to the app shops such as Apple – which controls the gateway to the developers, who are often on £60 or more an hour – with the content providers squeezed in the middle of an increasingly crowded market.
I have been talking recently to developers – partly to research this column and partly because I am trying to do an app of my own to see how difficult it is (more of that at a later date, maybe). The overwhelming message is how difficult it is to make enough profit to justify the investment when costs are so high and the market flooded with freebies. Sure there are some who make good money, such as existing branded games being repackaged in mobile form and niche services. The most successful income-earning apps last year – satellite navigation guides at £30 a pop – have been undermined by Google bringing out a free turn-by-turn street navigation option.
Unsurprisingly then, ustwo of Shoreditch – maker of, among other things, mouthoff, an app that enables the phone screen to mimic movements of your mouth, which had mouth-watering publicity here and in the US – couldn’t make a respectable profit at 59p. Indeed, the company admits “the bottom line is that it’s impossible to make money at the 59p price point for 99% of studios”.
Toiluxe, a neat 59p iPhone app that uses satellite signals to tell you where the nearest toilet is in London – whether the Ritz hotel or a public convenience – got publicity in several newspapers but not enough to make a respectable return given that the developer only ends up with only 60% of income after Apple and Vat (levied at higher Irish rates where the servers are based).
The obvious answer is to raise prices, but that is easier said than done in an environment where so much is available for nothing – as newspapers in a different neck of the woods know full well.
It is all quite crazy, really. People who pay more than £2.50 for a cup of coffee that is gone in a few minutes are reluctant to pay £1 for a paper that will last for hours or an app that will be with you for ages, probably with free upgrades. It is also becoming increasingly difficult to find an app among the hundreds of thousands on offer on the iPhone despite the growth of apps helping you to do just this (ie, looking for relevant apps) such as Chomp, or Mplayit on Facebook or Apple’s Genius. There must be hundreds of great apps that hardly anyone has discovered. Goodness knows what it will be like in a few years time.
There is an elephant in the room even though it is invisible at the moment: the bedroom programmer, shorthand for individuals working on their own. The reason is that it is very difficult to write code for a phone in the way that kids could program their BBC or Spectrum computers in the 1980s, a phenomenon that led the same kids to create a thriving computer games industry. Uncle Steve won’t let you near his phones except on his own terms. It may start to change with Google’s Android operating system based on open source, and I know of at least one developer working on an app to enable people to do their own coding on a phone in a (relatively) simple way.
If that happened maybe a new generation of cloud coders could send the apps revolution off in a whole new – and much cheaper – direction. The best things in life are not always free.
