The mobile app market is booming with Google and Apple offering more than 700,000 applications within their app stores respectively (WSJ, 2013). This unprecedented rise in popularity of mobile applications is inadvertently linked to the explosive growth in smartphone and tablet sales worldwide. More and more people prefer to go online through mobile devices to access content and information, anywhere and anytime.
The rapid evolution of the mobile apps market over the last few years clearly presents certain patterns in terms of product offerings or monetization models. The market is inundated with apps that have adopted the free/freemium model where the basic functionalities of an app is offered for free while requiring the user to pay for additional features and enhancements. This model has become so popular that consumers today expect all apps, irrespective of their intrinsic value, to be available for free.
While there are great success stories like Dropbox and Spotify that have leveraged the freemium model, Blueocean believes that it might not be the silver bullet to success for all apps across all categories.
To explore this hypothesis, we analyse and explore the possibility of sustained revenues through the paid apps model for certain speciality, targeted apps that offer unique and indispensable value to the user who in turn is willing to pay a certain price for availing that service. This idea is further substantiated using information available in the public domain. The companies that transform their business processes using mobility will achieve new levels of success. The time for business process transformation is now.For more on this topic, please read our Whitepaper.