Gartner published a report on Monday that found consumers are increasingly turning towards friends, social networks and recommendation engines to find apps. That means less consumers are browsing the Apple Appstore or Google Play looking for apps that may interest them and that means less apps are getting the exposure necessary to make money. As a result of this, Gartner predicts that only 0.01 percent of all mobile apps will be considered a financial success through 2018.
“The vast number of mobile apps may imply that mobile is a new revenue stream that will bring riches to many,” said Ken Dulaney, vice president and distinguished analyst at Gartner. “However, our analysis shows that most mobile applications are not generating profits and that many mobile apps are not designed to generate revenue, but rather are used to build brand recognition and product awareness or are just for fun. Application designers who do not recognize this may find profits elusive.”