With the amount of smartphones exceeding the amount of personal computers by 2014, the mobile apps industry will grow exponentially. We live in a society where technology is essential. There is an app for just about every aspect of life. You are able to utilize your phone as a remote for your car. You can play games or catch up on the news. Although this is a very competitive industry, it is fairly easy to enter. All that is really required is an idea, a computer, and a programer and you can create an “app”. As I read techcrunch daily, I constantly hear about start-up app companies receiving seed money from venture capitalists or being bought out by big tech companies. Companies like Facebook and Apple provide a platform for the app world, allowing these companies to reach their consumers, which are in excess of 500 million. About 81% of apps downloaded today are free. The way they are able to generate revenue is through advertising. The app industry is said to be a $15.1 billion industry. 16% of it, or $5.2 billion, comes from advertising. It is said that by 2014 that 30% of the revenues will come from advertising. Any company who advertises is taking note of this. They are creating ads for the apps allowing them to reach a wider customer base.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.