22 May '13, 2pm

Ecosystem economics swell rise of Android and iOS – VisonMobile: The economics and business models of app ecos...

Ecosystem economics swell rise of Android and iOS – VisonMobile: The economics and business models of app ecos...

The economics and business models of app ecosystems are based on network effects. By connecting users to developers, ecosystems create network effects, that is, they drive demand between users and developers: the more users, the more handsets, and therefore the more developers, the more apps and so more users. It’s a positive feedback loop that gives non-linear growth properties that outcompete traditional linear economies of scale. Network effects take place not just between users and developers, but also between all four sides of app ecosystems, including handset manufacturers, and network operators.

Full article: http://www.electronicsweekly.com/eyes-on-android/android-...

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