Tag: mobihand

Mobihand Under Financial Strain and Looking For Acquisition


Last week we wrote about Mobihand not paying a developer that was owed over $100K because it was having cashflow issues. Now, Mobihand has publicly admitted that it is under “significant financial strain” and it’s looking at selling the company. What’s odd, is that accounting for a middleman style company should be pretty straight-forward. If you owe a developer $100K, you should have that money guaranteed because it’s backed by the consumers that bought the app.
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UPDATE: Mobihand Possibly Nearing Bankruptcy: Doesn’t Pay Developer(s)


We received an interesting letter from an app development shop that sells their apps through Mobihand. Mobile Stream is apparently owed a total of $163,976 from Mobihand, and it looks like the 3rd party app store is keeping mum about whether they plan to pay any of the money owed to the developer. Read more after the jump.
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Developers: Maybe It’s Time to Drop Mobihand Entirely


app pirate

Have you checked whether or not your app is being pirated? A development shop recently reached out to BBCool to say that they’ve noticed a particular Mobihand user that has been purchasing their software and then posting the JAD files on his website and Twitter. This software pirate is from Malaysia and sells a $10 VIP membership to offset the cost of buying the apps. According to the developer it’s getting really bad and the download rate for pirates apps is 2 to 1 compared to paid, and it’s all coming from this one guy. Obviously, we’re not going to write the pirate specifically because we don’t want to drive any traffic to him.

We’ve been on a tirade against Mobihand lately and this is just one more reason we don’t think developers should be giving them their intellectual property. When speaking with developers, the general consensus seems to be that only 10% or so of sales comes from Mobihand and the rest from App World. The reason why developers are staying with Mobihand these days seems to be because they want a closer relationship with the bloggers and giveways through Mobihand make it easy to reach out to the community. But if only 10% of your revenue is coming from Mobihand, you should consider simply finding other ways to reach out to the community. Sure, App World has its downsides, but if your software is being pirated then it’s worth losing that 10% revenue and finding a new way to market alongside bloggers. Gift cards are an easy giveaway as they can be sent remotely.
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Mobihand Reducing Commission Payments and Unable to Compete with App World


Mobihand traffic has taken a considerable hit this past year.

It looks like Mobihand is on the decline and having a hard time staying relevant in light of App World. Recently, Mobihand sent out a letter to their distribution partners saying that they are reducing commission rates in order to accommodate the fact that they are paying developers 10% more on their sales. Developers used to get 60% from Mobihand and they now get the industry standard 70%. According to Mobihand:

Due to this 10% increase given to the developers, we need to lower the shared sales rate you earn to a maximum of 13%, with lower rates applicable to lower amounts of sales, effective July 1, 2011. This is an unfortunate revenue reduction for us and our network partners, but we believe the new developer rate evens the playing field and will have developers promoting our network of stores as much as they have done in the past.

What Mobihand doesn’t seem to understand is that they’re shooting themselves in the foot. Developers don’t make much money on Mobihand. From all the developers we’ve spoken to, it seems the average developer sees about 20% of their total revenue come from Mobihand and the majority comes from App World. The reason Mobihand is great is primarily because of the distribution partners. Mobihand and its distribution partners make a great marketing team and spread the word about apps to the partners’ readership. An additional 10% to developers isn’t going to amount to much in the end. Lowering the commission rates could create a sour relationship with the distribution partners who are keeping the company alive. The distribution partners are also driving a lot of traffic to Mobihand and lowering commission rates could have a negative impact on traffic as partners move elsewhere. From the above graph, it’s clear that Mobihand’s traffic is on the decline and it’s only a matter of time until the company either sells, goes bankrupt or pivots to remain competitive. Click through for the letter from Mobihand to partners.
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BlackBerryCool Launches New Store for Apps, Games, Themes and More


BlackBerryCool is now working with Bplay to serve apps, games, themes and ringtones. We still have a mobihand account so you can find your apps on our store. The difference is that the site no longer links to Mobihand and we’re going to be working with Bplay to help build their app catalog. This new change won’t affect coverage in any way, and the only difference is we’re making it easier to find premium content. Here are the links to our store sections:

The main store page is at blackberrycool.bplay.com.
Our games page is at blackberrycool.bplay.com/games.
Themes can be found at blackberrycool.bplay.com/themes.
Ringtones are here blackberrycool.bplay.com/ringtones.

Also, be sure to check out the mobile versions as they’re fully optimized and look great on touchscreens. Enjoy!

The Next Wave in the Mobile App Economy: Distribution, Sophistication, Payments and Identity


Moving from rivers of monetization to lakes of commerce exchange [click to enlarge]

EDITOR’S NOTE: Terry Hughes, former President of Widality, is Wmode’s as Head of Market Development. Be sure to check out his past editorials too.

The mobile app market is maturing nicely; apps are becoming more sophisticated, routes to market are broader, development times have been greatly reduced, there is a plethora of billing options available, and perhaps most valuable, apps have moved from being the domain of a few niche players to being a critical part of the branding and engagement strategy of most companies. In this sense, the mobile software market has started to resemble the PC software market with a few key platforms to worry about, standardized development tools, and open APIs to enable the many parties in the value chain to connect together.
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