Nearly Impossible to Get into Top Tier of App Business

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By Douglas A. McIntyre Published
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For all the hundreds of millions of apps and the billions of downloads from the Apple Inc. (NASDAQ: AAPL) App Store and Google Inc.’s (NASDAQ: GOOG) Play, the same apps dominate the top of the lists over and over. Breaking into the app business on a mammoth scale is nearly impossible, unless a company already has an extraordinary presence.

The Distimo “Top Global Apps — August 2013” report lists the top paid and free apps from each of the major stores. Free apps get many more downloads than paid ones, not surprisingly.

Ironically, two of the top five free downloads at the Apple App Store are Google Maps and YouTube, which shows that the market continues to believe Google’s map product is the best in the world. YouTube has more users that almost all other major video sites combined. Google is unlikely to give up either of these positions.

Facebook Inc. (NASDAQ: FB) and Facebook Messenger are among the top five downloaded apps at Google Play. This status speaks to the popularity of the social network and the size of its billion-plus growing membership.

But free games continue to hold a disproportionate piece of both paid and free apps, and a tiny number of game publishers are particularly powerful. King.com, Pop Candy and Play Loft have much of the top of this market. King.com’s “Candy Crush Sage” is among the top five most downloaded apps on both the Apple and Google lists. Also on the list, “Despicable Me” has its own movie and a multi-title franchise. Also there, “Plants vs. Zombies” is four years old and also has plenty of versions and sequels.

Several very well-known apps are not on either top five list, but each must get millions of downloads a month. Twitter, weather apps, Pandora Media Inc. (NYSE: P), eBay Inc. (NASDAQ: EBAY), Gmail, Pinterest, Amazon.com Inc. (NASDAQ: AMZN), Skype and Groupon Inc. (NASDAQ: GRPN) already rule across the PC, tablet and smartphone “ecosystems.” None of these is likely to lose popularity, and some probably will gain more.

There are anecdotes about three people in a garage who build an app and made millions. If they exist, it must be in very small numbers.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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