Led by apps for mobile devices, the "app economy" is responsible for almost half a million jobs in the U.S., estimates a new study sponsored by CEO network TechNet. But the study also says figures may represent "jobs not lost."
by Lance Whitney February 7, 2012 10:15 AM PST
The surge in mobile software and other apps has also led to a surge in jobs, almost half a million just in the U.S., estimates a study out today from CEO network TechNet.
Dubbed the "app economy," the million or so apps created just for iOS and Android devices represent jobs for programmers, designers, marketers, managers, support staff, and other professionals, according to TechNet's report "Where the Jobs Are: The App Economy."
But how just many jobs? Analysis conducted for TechNet by Michael Mandel, president of South Mountain Economics and former chief economist for BusinessWeek, found that the app economy has been responsible for adding an estimated 466,000 jobs in the U.S., up from zero in 2007 when the iPhone was first unveiled.
However, it's important to point out, as the study notes in its executive summary, that these are estimates and "may represent 'jobs not lost' rather than net jobs gained."
That total includes jobs at a business like Zynga, which creates Facebook apps, as well as app-related jobs at companies like Electronic Arts, Amazon, and AT&T. It also naturally covers jobs at top app players such as Apple, Google, and Facebook.
As detailed in the study, the core platforms in the "app economy" include Google's Android, Apple's iOS, RIM's BlackBerry, Microsoft's Windows Phone, and Facebook's own apps.
The top metro spot for app economy jobs proved to be New York City and its surrounding counties, according to Mandel's research. But San Francisco and San Jose combined exceeded the jobs created in and around NYC. California got the nod as the highest state for app economy jobs. But the rest of the country is also benefiting, with almost two-thirds of the jobs counted outside California and New York.
Mandel compiled his data through a variety of methods, such as searching help wanted ads by certain keywords, comparing the number of ads with the number of jobs, and looking at third-party app developers.
The full report describes in much greater detail exactly how he conducted his research.
Still in its early years, the app economy is growing rapidly, noted the report, and is likely to shift even further over the coming years.
"It must be noted, of course, that the App Economy is only four years old and extremely fluid," Mandel said in the report. "Both the location and number of app-related jobs are likely to shift greatly. It should also be noted that the figures presented in this paper are estimates, based on innovative techniques developed for this project. Finally, these may represent 'jobs not lost' rather than net jobs gained. Yet the basic principle holds. Innovation creates jobs, and in this case, lots of them."
Abundant hype, wildly overvalued IPOs, overnight millionaires, questionable business models, scores of startups offering gimmicky and Social Media Bubble frivolous services, the social media bubble has it all – it’s a dream come true for Generation Y techies and investors who missed out on the Dot-com bubble or for those folks who simply feel nostalgic for the heady days of the late 90s.
The social media boom has its roots in the relatively recent successes of a leading new wave of tech companies (and acquired startups) such as Google, Youtube, Apple, Facebook, Groupon, LinkedIn and Twitter. Successful early employees and investors of Google and Facebook have become venture capitalists looking to find and invest in “The Next Facebook.”
There’s nothing inherently wrong with social media or social media companies per se; what has become a bubble is the level of hype and mania surrounding social media startups, IPOs and, most importantly, the wild valuations that investors are eagerly paying for these companies. Social media has become the latest in a long line of investment fads. (Remember solar and alternative energy stocks in late 2007? That didn’t end very well.)
During the peak of the late 90s tech mania, before the crash, the Price/Earnings ratio of the Nasdaq 100 was far over 200 (a healthy level is 20 or less). A high Price/Earnings ratio is a sign that investors are willing to pay very high prices for a stock due to their expectations of blazingly high earnings growth.
The social media bubble is certainly trying its very best to beat the Dot-com bubble, in terms of insane valuations:
The word should be banned so people actually have to apply some intellectual horsepower and actually describe the situation as it is.
FB: up 0.6% on IPO day, and only because the underwriting banks bought the stock to put a floor at $38. Zynga: Actually went down 6% on IPO day. Groupon: Up 40% on opening day and down 55% since then Linkedin: OK that one doubled on opening day and it's up 10-15% since then, but it actually makes good money and has a good business model and plenty of scope to monetize further.
I'd say the history of social media so far is one of most people seeing through the bullshit, but there still being just enough fools to buy the stock on opening day.
Nothing like the dot com bubble where you were having 500% pops for companies that had earned less nett income than a tramp on the corner who sold one paper bag.
Overvalued, yes. But a bubble requires asset price inflation and these (LinkedIn excepted) have tanked almost out of the gate, and rightly so.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
The internet was a piece of shit back in the dot com days. All there was was dialup, irc, and a handfull of decent games. Now it's good and everyone is on it. Even ya mum.
I was watching a documentary on abc about facebook and it's amazing the fucken gayest games that twats get addicted to on there. There was some guy handing over money for some golden pooh on some pet game.
I wish I knew what twats wanted. I mean look at that angry bird game, I got over that after about 5 minutes.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
How about a game where you kick boomers out of their homes, and get bonus points for creative ways of blaming them for all of your problems?
I think you're in the wrong country. You and your ilk belong in Mexico or Columbia. Criminal scumbag paradise.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
With your attitude, the only place you'll ever be able to afford a home is in the Mexico slums.
With your attitude, a slum you shall be in when the great crash occurs.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
With your attitude, a slum you shall be in when the great crash occurs.
Yep, saw the writing on the wall prior to the first GFC, then consolidated my opinion on where things were heading when I saw the response and realised i needed a low overhead high return get out of jail card within two - three years as the meltdown was going to cost everyone dearly and jobs would be like hens teeth when things really turned shit.
Invested heavily into developing a bespoke platform for rapid flexible deployment across all devices, platforms, etc with fast integration highly flexible design etc and am looking to leverage the platform to deliver upto 20 (this year and the same again next) apps, social media, streaming broadcast (NBN was a music to my ears), sporting, medical, interactive etc, etc - hopefully over the next 24 months I can chip in and employ plenty of people as they head back from the mines.
Not to mention pour the profits into the bottom of the real estate market.......
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