What The Purchase of Instagram Means for App Developers

facebook, instagram iconWith Facebooks recent purchase of the popular, 18-month-old photo app Instagram for a cool 1 billion dollars, the arms race in the world of mobile app development has officially begun. Facebooks acquisition of Instagram will set in motion a tidal wave of perceived opportunity for current and aspiring app developers. Venture capitalists will be foaming at the mouth to create the next hot app that they hope will be quickly purchased by the most paranoid and deep-pocketed company in the newly forming mobile app bubble.

 How the purchase of Instagram will affect the mobile app market:


1. More investment flowing into the app sector

Demand generates value and one thing thats certain is that the demand for mobile applications and development experts is in fact growing. Companies will be looking to purchase apps with a large user base more quickly, before they get beaten to the punch by another investor and before the application reaches a value where it is no longer beneficial to the company to sell. Furthermore, this means the app bubble will continue to grow. Venture Capitalist will continue to overpay for apps. Yes, that’s right the app bubble has just started.

2. Inflated pricing and costs in the app economy (this means for development to purchase of a company)

Quality development will become even more crucial in creating a graphically-appealing, bug-free app that has a great interface and is, most importantly, fun to use. As demand increases the price of marketing agencies, app development companies, and advertising networks will increase, thereby increasing the cost of doing business. Gone are the days of .10 cent downloads and mobile app develpment that costs less than 10Gs.

3. More innovation and fresh ideas

Competition spurs innovation and uniqueness of the idea will become the crux of a successful mobile app. A fresh idea, or a new spin on a common theme, will help the app stand out from the crowd. Developers and investors are realizing its not just about making a great app, its about making a distinctive app. The bar has been raised and the stage has been set, a new generation of innovative apps are about to make their way to our mobile devices.

4. More pointless fart apps

What can we say, some people will just never get it. The desire to create pointless fart apps is a strong one that will only grow stronger in the new mobile app landscape as more people try their hand at app development.  God speed fart apps. God speed.

5. More competition from new app developers looking for a big pay day

No matter what it is, when something is doing well everyone wants a piece of the pie. It is human nature, so its no surprise that there will be an increase in competition among new developers, all looking for their quick millionor billion. Luckily competition is generally a good thing, it promotes growth, forces us to be more creative, and makes us more goal-oriented. Seize the day app developers, were looking forward to seeing what you create!

What are some other effects the Instagram purchase will have on the app economy?

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