Tag: mobile apps

Economics of mobile applications evolving

| March 5, 2013

Mobile Application EvolovingPricing disparity in mobile applications is gaining notice

The world of mobile applications is evolving. App developers are beginning to push the boundaries as new, more advanced mobile devices are introduced to the global market. These devices are governed by their operating systems, of which the most prolific are the iOS and Android platforms. Each operating system boasts of a devoted consumer base, which often clash against one another as the two flaunt the performance and capabilities of their favored platform. The disparity between the two platforms is becoming more apparent in the arena of mobile applications, however, and the divide separating the operating systems is quickly becoming one of cost.

SoundHound shedding light on pricing disparity

SoundHound is a simple instant music search and discovery application. It is not the first of its kind, but has become very popular with mobile consumers around the world. The application is available to both the Android and iOS operating systems  and is used quite regularly by consumers in both camps. Mobile applications are typically cross-platform, but their universal nature is punctuated by the fact that they do not cost the same on every platform. This issue is becoming highlighted by the SoundHound platform, as well as many others that are available to consumers.

Differing costs resulting from business model experimentation

SoundHound is available on the Android for $6.99 through Google Play. On Apple’s App Store, however, it is available for $5.99. The price disparity is not gargantuan, but SoundHound is one among many mobile applications that do not have singular pricing across all mobile platforms. This is because developers are beginning to test various business models and pricing points in several markets. Notably, the SoundHound application is available for the Windows Phone operating system for free.

Experimentation may be a risky venture in the mobile applications business

Testing new business models and pricing points can be very risky when it comes to mobile applications. Pricing disparity can often confuse or enrage consumers, leading to heavy criticism and causing applications to fail in the market. SoundHound has not been free of this criticism, but has managed to avoid the prospect of failure. The app has also begun to highlight the fact that the economics of mobile applications continue to evolve and that no concrete business plan has yet emerged to create a standard in the mobile space.

Mobile commerce may suffer trust issues in the future

| February 26, 2013

Mobile Commerce App SecurityStudy highlights concerns consumers have in mobile commerce and elsewhere

MEF, a global community focused on improving mobile commerce, has released a new study concerning online privacy. Over the past few years, privacy has become a major concern for consumers all over the world. With companies, social networks, and even mobile applications, sharing people’s personal information with advertisers, many consumers have become weary of sharing any personal data through applications, especially those concerning mobile commerce. The MEF study highlights some of the concerns that consumers have regarding how their information is used.

Consumers show concern in what information is being collected from them through applications

According to the study, which is called the Global Privacy Report, approximately 37% of consumers are comfortable with sharing their personal information with a mobile application. The study draws upon information collected from ten countries, all of which have strong representation in the mobile space. MEF analysts suggest that many consumers are disinterested in sharing their information with applications because of concerns over security and how this information is being used.

How information is being used is a top issue among consumers

The study shows that 70% of consumers believe it is important to know how their information is being used, and what kind of information is being gathered through mobile applications. Mobile commerce applications, in particular, are of high concern to consumers because of the their use of financial information. While this information is not traded, other personal information is often made available to advertisers and many consumers have expressed concerns that the availability of this information makes it a target for hackers and other malicious parties.

Mobile commerce may suffer from gaps in mobile security

While consumers show a strong concern with how their information is being used and what information mobile applications are collecting, only 18% of consumers lack confidence in the security of their information. The study suggests that there are significant gaps in the realm of mobile security, however, especially when it comes to mobile commerce. If these gaps are continually exploited, the trust that consumers have in their mobile security may wane significantly.