5 Things to Know about Mobile App Innovation

1.    Apple is where it’s at – We have talked with hundreds of mobile app companies across all verticals, and they all confirm that Apple’s App Store is where the money is being made in mobile.

2.    Android apps lag – Yes, Android has users.  Android phones outsold Apple’s iOS phones in August (although this doesn't account for iPod Touch and iPad sales).   What Android doesn't have is money for apps.  Android users like things free, so paid apps struggle.  Android doesn't have in-app purchases.  Android apps will lag as long as developers can't make serious money. 

3.    Gaming is only the beginning – The value prop for a mobile game is not a mystery.  The spec for a mobile game is simple:  make it fun.  Fun in a mobile game is closely related to fun in games on different platforms.  So it’s only natural that gaming has attracted the most developers, the most users, and the most revenue.

4.    Great non-gaming apps are hard – Unlike gaming, in other categories the consumer use case is often de novo.  The best apps for travel, health, or shopping are much different than websites in those categories.

5.    Mobile-native, non-gaming apps are starting to take off – They don’t get love from TechCrunch, but look outside of the Valley and you will find amazing non-gaming apps from companies like Mobiata (just bought by Expedia) in travel, Trapster in navigation, and LexTech Labs in security.  Critically, these apps were designed from the ground up to be mobile apps, not ports from existing websites.