Is it just pure market share from marketing efforts? Is it upfront investment to keep like major server requirements or something running?
To me, who knows nothing, it seems like an app that just uses native features on your phone (camera for example) would be easy enough to replicate/produce. So why is Snap or TikTok such powerhouses?
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Value of an app isn’t just the tech being used or even what a consumer pays to use it.
The value of an app lies in how many people are using it and how well that app can be used to market things or get tasks completed.
For example, Snapchat got started pretty cheaply (compared to apps today). The developers probably only really spent a few hundred hours writing the code to make the app work. The servers the app used probably also only cost a little bit (compared to now).
However, Snapchat saw a rapid explosion of users. All users who they could advertise to or sell features to. That user base is what’s providing the company value.
In the case of something else, like Microsoft Excel, that makes business tasks more efficient, their value is determined by the value of the time they save. For example, companies would’ve spent hundreds of man hours to keep track of budgets before Excel. But now that Excel is a thing, each and every company using it is saving on thousands of hours worth of time.
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