UK App Developers: The App Market Bubble

UK App Developers: The App Market Bubble


Hi! This is “A Minute Of Overpass”. My name is Eric, and I make apps. Now, this week I wanna talk about “The App Market Bubble”. Okay, so a few weeks ago I went to go see the movie “The Big Short” which is really good. And you know, I really enjoyed it,
but it got me thinking a lot about the app market, and whether or not we’re in a
big tech bubble or anything like that, and it reminds me a lot of some of the
other bubbles we’ve been through, ’cause I’m in my early 40’s, so I’m kinda you know, I’ve been through a few of them . ‘Cause I can remember back in the late 90’s, I was a web developer, you know, 98…99, you know, and early 2000’s, all the way up to becoming an app developer, I suppose. And I can remember I was working for this small company in the early 2000’s and..and quite a
few people came to me and said, you know, “Hey Eric! You’re a web developer. I don’t understand why you’re not releasing this big website, a big website to make millions in it?”, and they said “I tell you what, I’ll give you my idea and… and the two of us can
partner on it. You code it, I’ll you know, I’ll be the brains behind the operation, and
we’ll make millions.” and fortunately I’m never…never did anything like that, but
eventually, what happened is that the bubble burst. Everyone lost confidence in
the web, and calmer heads prevailed. People started to realize you couldn’t just release a website and people would go find it, you know, spontaneously, and…and start spending money on it. But I was pretty well employed after that, so once
the…the tech bubble burst, which we refer to it the early 2000…2002 or whatever, then you know, I got a lot of corporate jobs. I work for a lot of investment banks, building websites for them, and not external facing websites, but just stuff for their employees, for their contacts, and all that kind of stuff. So
that was very much…a very much gainful employment afterwards. Later on like in 2006…2007, I can remember working at an investment bank ,and it seems like everybody around me in the
same job that I was, had more than one house. They were, you know, some people have like 5 or 6 houses as rental properties, because it was getting so
crazy where everybody was getting into real estate as a…as an easy way to make
money, and they were telling me that I should get into it. Now, the reason I
didn’t get into it now, was not because I thought I saw it as
the big bubble that it was, and I was smart. It’s more from fear. Like I don’t want to get involved in all that kind of stuff, and luckily I did it, because it was a few short years later or the next
year then, you know, that bubble burst and a lot of people lost their houses and
and all that kind of stuff, but… it was…it was more the…the frantic way
of…of that. So people ask me if I think now we’re…the app market is a
bubble, and I have to say “Absolutely, yes you’re right”. We are such a bubble and
the reason I say that is because you see a lot of irrationality at the moment, the
same way you did in the early days of the web, right?. When we look back at those days in the early 2000’s with pets.com and all that kind of stuff, we could see it
for as crazy as it was, but yeah you know, everybody was kind of swept up in it, and this is what you started to see…to see what the app market too. People have this, you know, they have this idea, and they think that the ideas just gonna…to lead to millions, or
will see something like a big purchase of an app by, like Google or something
like that, and think “Oh that was just a guy starting out in its garage, I could do
the same thing. So people are spending like a lot of money to produce apps, and it’s… it’s irrational because we consider how many apps are actually
being released, thousands per day onto the app market. It really is hard to
to be found so, and I’m starting to see the shift now, kind of if the
bubble hasn’t already burst, its gonna burst soon, right?. So I get like two types
of people who contact me. I get individuals or companies. So with
individuals, a lot of times it’s somebody who has a big idea that they wanna try,
and they want to, they think it will, it will make money, and it’s…it’s
really hard for me to…to gauge, and they’ll ask my opinion as to whether or not
it’ll make money, and I can’t say one way or the other, ’cause I had the same
thing with my app, you know, Ear Spy, my biggest app, was the first one I released. It was
my idea. It continues to generate income for me. I don’t have to work if I don’t
want to because of this app. I mean it’s so it’s…it does work. You can make money
through apps. However, it’s not, you know, it’s not the runaway hit. I’m not a millionaire. I don’t live in the mansion yet, but the
other type of client that does come in is…is a company, and it’s like a lot lately. Seems to be more companies are moving in the same way with the web where, you know, it stopped being the…the lone individual who wanted to…to set the world on fire,
but it can be the investment banks or whatever who wanted to build something
for their employees. So lately, I’ve been getting a lot of clients who are
just, you know, they say “Hey Eric! We have, we’ve got these these couple hundred
users, or a few thousand users, or all of our clients, we need a tool that they can
do such as such with.” and they’re not looking to become rich, but they’re
looking to have something to…to help their clients so it’s… it’s I think we’re
at the point now where the..the app bubble is going to burst. If it hasn’t already,
and cooler heads will prevail. Now, what that does, that does not mean
that you cannot make money through apps, but it…it means that you have to be more
realistic with your expectations, just like when we look back at the early days
of the web, the web didn’t go away, but people stop being so irrational about it.
People started looking at it more as a… as an investment. So I’m gonna work on
this website just because I release it then I have to start looking at, you know,
making it well in Google. I have to start working at convergence so people can get to it, all
that kind of stuff, and you know when you look at a movie like The Big Short, you
start looking at it, years from now we’ll look back at this time if they can, “Hey do you remember how everyone went so crazy about apps?”. “Do you remember when…when someone had an app idea, they would…they would carry it around with them and not let
anyone look at it, pretend it was gold?”, but that’s the way it’s gonna be. So, yes
we are definitely in an app bubble, but that doesn’t mean that it’s not gonna work
out well for us in the future, but you know, cooler heads will prevail and those
of us who are gonna stick with it which is my attention at the moment. We’ll do
well. Okay? So that’s it for this week. I hope you enjoyed it, and I’ll talk to you next week. Hey! I really hope you liked that video.
Now, I do this once a week so if you…if you wanna hear more or you wanna hear more about our experiences with the app store either Google Play or iTunes, please go ahead and subscribe to the channel, and please like this video and leave a comment.
I love reading the comments. I love hearing what you have to say, even if it’s just Hello or whatever, and like I say before, if you’re not sure what to say in a comment, like I never know what to say in a comment…I’ll make it easier for you. If you like it, just go ahead and say “Gnarley” which is an 80’s term, or if you didn’t like it…just say “Bogus”, and if you didn’t think anything of it, just say “Eh”. So that will be a big, big, big help. And another thing you could do which I’d really appreciate it. If you are on the app store and you wanna try one of our apps, look up some of the Overpass Apps. Applications either on iTunes or Google Play, and leave a review, and let us know what you think about it, either good or bad, but, you know, it’s a …we are all trying to build up in the market so… so that will be a big help. So that’s it, I’ll talk to you next week!

8 thoughts on “UK App Developers: The App Market Bubble

  1. Thanks for sharing your experience with us.
    Hey Eric, what do you think about the adblock apps?
    Do you think they are a menace for those of us who make money in our apps through ads?

  2. Very Interesting video, Well app marketing is one of interesting and emerging field in today's time, If you want to boost your app installs and get more positive reviews check : http://goo.gl/1xG7VJ

  3. Sadly, its all true. Never let yourself be swayed by the flappy bird story and if you do dont let yourself be swayed a second third fourth fifth time like me.

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