Comment Payouts and application revenue (Score 1) 269
The main thing that's happened is that simple horizontal applications are approaching a price of $0. The answer is don't code simple horizontal applications if you are looking to make money. That doesn't mean the whole model is broken but that there is massive oversupply of particular types of applications.
Apple app store payouts are about $5b growing at a rate of about $1b / year. I'm having a hard time seeing a medium sized and rapidly growing revenue stream as not existing. It is absolutely concentrated though that's true. Where it isn't concentrated is money from vertical and custom applications which far exceed the app store payouts.