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Thread: Apps - The New DotCom Bubble?
16-04-2012, 02:23 PM #1
Apps - The New DotCom Bubble?
So many news story recently about these app developers getting bought up for millions and even billions of pounds got me thinking.
Are those companies really worth that money? because really looking at it I don't think they are. I feel that a lot of companies are seeing some apps get the the top spot and really want to buy them even though getting to the top spot doesn't really mean a thing. Just look at Draw Something most people download the free app giving them no money, I guess adverts might give you some money but not really that much and I really don't see anyone buying the colours or extra words among my friends.
This happened before when the internet was first coming about, people bought websites and blogs just because they were in and were seemingly popular but found out later that they weren't getting money out of it and it crashed.
I can see it all happenning again with the app market.
16-04-2012, 04:40 PM #2
I've thought the same myself. I mean Instagram is a bit of a fad surely? A lot of people will soon tire of having photos that look like they're from the 70s.
1 billion is a crazy price, even assuming Facebook get's some other use out of the tech behind it and some developer talent to boot.
I can definitely see it cashing but I'm sure thee will be a few more eye watering deals before then.
16-04-2012, 04:45 PM #3
App means application, it's a bloody Buzz word that gets investors excited, like 'intellectual property franchise' and 'unique selling point'.
Of course its a bubble, but this said all luxury products are.I am once again writing a blog, vaguely about playing games the wrong way
16-04-2012, 04:49 PM #4
If USA keeps going on with QE3, QE4, QE5,......,QE infinity, this is the best you will get.
If Central Banksters keep printing fiat money, those papers have to go to somewhere. You westerners should feel lucky that those notes are collected by companies that at least produce "something". In the East, those notes go to real estates, and rocketing house prices leave thousands homeless. For us it's no longer an economic problem. It's a social stability issue that jeopardizes our very safety.
Who knows, maybe a decade later this development will be reviewed as a boost in mobile computing technology.
We often consider Dotcom development in late 1990s to early 2000s as a bubble. Yet the Internet businesses we are in this day is the legacy of that "bubble". We are human beings, not gods. You have to tolerate mistakes for the greater good.
Last edited by squirrel; 16-04-2012 at 04:55 PM.
30-04-2012, 05:09 AM #5
- Join Date
- Aug 2011
It's getting a bit ridiculous. Most 'app' developers aren't really part of this bubble, but they'll be affected by it. It goes further than apps though in my opinion. I think some technology companies are getting far to overvalued. Apple for instance might have a huge amount of cash, but I can't help but feel they are valued at far more than they are worth. Facebook will almost certainly float at a silly level as well.