A recent analysis conducted by RevenueCat has shed light on the revenue disparities within the mobile app industry. The study, which looked at data from over 29,000 apps and 18,000 developers generating a total of $6.7 billion in revenue, revealed some eye-opening statistics.
According to the report, the top 5% of apps are generating a staggering 200 times more revenue than the bottom quartile. In fact, the median monthly revenue for an app after 12 months is less than $50 USD. Only 17.2% of apps are able to reach $1,000 in monthly revenue, highlighting the fierce competition in the market.
When it comes to app performance, health and fitness apps have proven to be the most successful after a year, while travel and productivity apps are struggling to keep up. Interestingly, the most common price for a monthly subscription is $10.
The analysis also revealed regional differences in app monetization, with North America-based apps leading the pack with 4 times the monetization of the global average. Japan and South Korea were found to monetize better on Android than iOS.
However, the study also highlighted some challenges facing app developers, such as a 14% drop in the share of monthly subscribers retained after 12 months. On a positive note, more than 10% of churned subscribers were found to re-subscribe within a year.
Looking ahead, experts predict that more apps will adopt no-trial subscription plans, subscription prices will rise, and AI will be used to create more personalized user experiences. These trends signal an exciting yet competitive future for the mobile app industry.
