App Economy

Definition - What does App Economy mean?

App economy refers to the range of economic activity surrounding mobile applications. Mobile apps created new fortunes for entrepreneurs and changed the way business is done. The app economy encompasses the sale of apps, ad revenue or public relations generated by free apps, and the hardware devices on which apps are designed to run.

In 2007, virtually no mobile apps existed. As of 2011, more than 25 billion apps have been downloaded.

Techopedia explains App Economy

Apps have helped shape the leaders in mobile technology. Apple Inc., which was first out of the gate with the promotion of its App Store in 2008, gained a large chunk of market share with its iPhone. Apps were part of the iPhone's initial draw. Android has since gained ground with its Android Market, which peddles apps for Android-based phones.

Apps are also effecting a shift for online businesses, which are often accessed through an app on a mobile device, rather than over the Web. As a result, websites that get most of their revenue through online ads have had to consider what apps mean to their business model.

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