Lots of people I know think that their idea for an iPhone app is a great business idea, and could make them rich. I think it's a nightmare, akin to two-level pyramid scheme that generates revenue for the platform provider (Apple), while the little guy absorbs all the risk. Who is right?
This is my reasoning:
- The market for mobile apps is so visible, that it's crowded with competitors.
- Software developers are expensive, so the cost to prototype and build an application is high.
- The risk is high; even after investing in the application, there's no guarantee that anyone will buy your product.
- The market is fragmented between various platforms, so a completed application can only target a fraction of the total market.
- Platforms like Apple will take a huge chunk out of whatever revenues you manage to generate.
My question: is mobile application development a gold mine, or a lottery?