Reasons Why Most Mobile App Startups Fail

An article by the Forbes magazine quotes the percentage of successful mobile apps to be point zero one (00.01) percent. The economics of making a financially successful mobile app seems tremendously difficult to master. And the truth is that most mobile apps do not even manage to hit it off with the consumers on a creative or functional levels.In this Article we describe 5 Reasons Why Most Mobile App Startups Fail as there are many internet startups which are coming up focused mainly with Mobile Apps.

why mobile app startups Failure

Why is it that most Mobile app startups fail? We’re here to tell you.

Not understanding Customer’s Needs.

This can be divided into two points 1. Not Listening to Customer Feedback.

This is without doubt the most common reason to be found. You often see entrepreneurs who come into business with a set agenda, to fulfil their own mission. No one is denying the value of their dreams, but in the trade, the trick is to listen to your consumers and change along with their expectations. You cannot improve unless you are flexible. You cannot innovate unless you are listening. You have to take the advice of users and change the features even when you disagree personally.

Most mobile apps fail because they don’t impact on users positively, and there are an array of different reasons for that. But the silver lining is that this is NOT a permanent problem. Taking consumer feedback and implementing it in an effort to make the mobileapp user-friendly as possible is half the battle won.

The other part of failing to understand the customer’s needs is 2. Not pre-defining the Target Audience for the mobile app. You must focus on who you are creating the mobile app for while you start to formulate the idea in your head. Your marketing strategies must be aimed particularly at them.

Poor App Design.

A whopping eighty percent of gaming apps fail because they are badly designed. What exactly is a bad design though, and how can you not make the mistakes that have been made before?

Well, there are some characteristics that all well-designed apps have in common : user-friendly interface, simplicity, smooth placing of buttons, clear images with a high resolution. And even though good design and good presentation should never be confused, the latter is almost as important as the former. There is no need to make something flashy or glittery, but your app needs to look appealing to the consumer. Reduce the job of the user as much as possible. Your UI should leave no room for doubt in the user’s mind, be clear and engaging. Keep the loading speed at optimum, and make sure there is no stalling.

Another huge issue is the application on different operating systems. Does your app pop a bug on a particular iOS? Does it have any issue with particular device model? These problems need to be addressed immediately and also need checking from time to time.

Lack Of Capital.

An mobile app startup proceeds much faster than an offline or even any other online business. Hence when you are starting off and launching the mobile app, you already need to have a complete hundred percent of the needed capital ready with you. Most companies go down the same dismal path of not planning ahead monetarily. The mobile app business is a take or make place, and if you haven’t planned ahead and allocated your money wisely, you are out of the game. You will be off the road before you start the engine.

I would just like to reiterate that you must be extremely cautious while plannig the budget. You should have backup and backup for the backup. Assume that you will be in loss in the beginning and barely start to break even for about an year or so. Because that is exactly how it will be. Consider the worst case financial scenario (and prepare for it) before you take the plunge.


Marketing is one reason for mobile app startups.Most entrepreneurs invest most of their time and energy and money into developing the mobile apps as they believe that the mobile app itself needs to be the best there is. Though your product remains of maximum importance, you cannot rely on word-of-mouth publicity for something like an mobile app. We are living in an extremely oversaturated mobile app landscape where there is an app released daily for every reason you can imagine. In fact, there is an app to know how many apps are out there! There are as many as five million competitors for you on the main stores, and that’s not even counting alternative markets.

If you do not create an effective marketing strategy, your mobile app will fail no matter how good it is. If you are a technical person, you might want to hire an SEO expert for social media and digital marketing.

The Competition.

A related point that most app developers fail to think about is the competing apps. As mentioned before, planning to launch an app into an already over-saturated app landscape is not a decision you can take lightly. One must study the other apps that are out there for the same purpose.

While is true that most mobile app startups are advised to focus on their own venture rather than getting distracted by the competition, ignoring and neglecting this factor leads to failure for many different sub-reasons. Don’t steal anyone else’s ideas, but keeping track of your competition will give you a clearer sense of direction and pointers on what you want your own USP to be.

Bad Launch Timing.

Not keeping tabs on the competition and the consumer can lead to you picking a bad launch timing for your app. An mobile app startups containing all your medical history, doctor contact information and soft copies of your X-rays, etc might not have worked five years ago when doctors would not have accepted it. Or perhaps not paying attention made you miss out on a time where you could have profited tremendously from the app. Also remember not to launch too slowly or too fast. Keep a constant optimum speed for your updates and market surveys and app delivery, that is, regulate your update efficiency.

So that’s it, these are the most frequent mistakes that mobile startups make. Make sure to avoid these mistakes and you will be sure to succeed beyond all expectation. I hope you have learnt about mobile app startups failures .Are you in process of developing or launching an app? Share your story in the comments below.

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