One of the most thriving industries that has started to arise all around the world involves the creation of apps and the like. Plenty of companies have been set up to specialize in the creation of apps because of the fact that this is the sort of thing that could potentially end up bringing a lot of revenue their way, but how well these companies have been doing? As 2021 draws to a close, let’s take a look at their success.
According to Sensor Tower, 2021 has been the best year for consumer spending on apps in history, so it’s safe to say that most app companies are doing well. With all of that having been said and now out of the way, it is important to note that it’s not just the established players that are managing to find success in this regard. Quite on the contrary, it turns out that almost a thousand app developers actually managed to cross a million dollars in revenue for the first time ever this past year.
If you were to look at how things were just five years ago, you would get a good indication of the growth that this sector has seen. Back in 2016, around 475 app developers crossed a million dollars in net income for the first time. That means that the number of new companies that are crossing this milestone has actually doubled in just five years, and at this rate of growth there is a strong likelihood that more records are going to continue to be broken in the coming years.
However, if you were to take a closer look at things, you would find that a lot of this growth came in 2020, and there has actually been a bit of a decline in this statistic. For example, around 585 iOS app developers reached a million dollars in income this year, which is around 9% lower than the 636 or so that reached this milestone this year. Hence, the growth that can be expected might not be exponential, but it still means that developing apps has turned into a highly profitable enterprise.
One reason why fewer new companies have crossed the million dollar revenue mark this year might be due to normalization. 2020 saw a huge boost to the industry with people installing and using more apps than in previous years due to the pandemic, and this is starting to level out. That means that the industry in general will likely continue to grow, and we might see further growth in this statistic next year with app developers continuing to innovate and try to provide solutions for day to day problems among users.
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According to Sensor Tower, 2021 has been the best year for consumer spending on apps in history, so it’s safe to say that most app companies are doing well. With all of that having been said and now out of the way, it is important to note that it’s not just the established players that are managing to find success in this regard. Quite on the contrary, it turns out that almost a thousand app developers actually managed to cross a million dollars in revenue for the first time ever this past year.
If you were to look at how things were just five years ago, you would get a good indication of the growth that this sector has seen. Back in 2016, around 475 app developers crossed a million dollars in net income for the first time. That means that the number of new companies that are crossing this milestone has actually doubled in just five years, and at this rate of growth there is a strong likelihood that more records are going to continue to be broken in the coming years.
However, if you were to take a closer look at things, you would find that a lot of this growth came in 2020, and there has actually been a bit of a decline in this statistic. For example, around 585 iOS app developers reached a million dollars in income this year, which is around 9% lower than the 636 or so that reached this milestone this year. Hence, the growth that can be expected might not be exponential, but it still means that developing apps has turned into a highly profitable enterprise.
One reason why fewer new companies have crossed the million dollar revenue mark this year might be due to normalization. 2020 saw a huge boost to the industry with people installing and using more apps than in previous years due to the pandemic, and this is starting to level out. That means that the industry in general will likely continue to grow, and we might see further growth in this statistic next year with app developers continuing to innovate and try to provide solutions for day to day problems among users.