The problem described here is partially inaccurate. The problem of the app store market is that it is largely misunderstood by investors, as it is way closer to the CD-Rom market of the 1990s than it is close to the web of the post Google web. Most apps in the app store are games/utilities/social products...and this is what consumers go out and look for.<p>Games and utilities can be searched, but the Best Buy truth is that only a few actually make some money, and this tends to be the best ones that are featured in the Top 25 rankings (Turboscan, most camera+ or camera add ons, or SuperCell/Minecraft, etc...). Like at Best Buy, where being featured in the shelves triggered more sales (ask Intuit). Some vendors have created niche businesses for themselves, but they tend to be not VC-funded.<p>Social is a category with a lot of large mobile only players (Instagram, Snapchat, Tango, WhatsApp, Viber, Voxer, Vine, Grindr, Waze, Kik...) and a lot of web players (Facebook, Twitter...).
None of the mobile only players monetize their user base right now appart from WhatsApp.
What are the odds that another one can emerge from there in a niche? It's tough, and it's not a discovery/search problem, because the day that Facebook launched in 2004, Mark Zuckerberg could not count on search to drive traffic to Facebook as nobody was typing "pictures of my Harvard Econ 102 classmates" on Google.<p>If you go back to the web, with the exception of a few social products (Linkedin, Facebook, Twitter), which businesses make money online?<p>ECommerce? They do pretty well on mobile if you look at older models like eBay or new ones like Uber or Instacart.<p>SaaS? This one is a tricky one, the Apple Store tax of 30% even on SaaS subscriptions discovered on mobile does not help this market to thrive.<p>Media? Media is already tough to monetize on the web, but on the mobile with lower CPM, it's mission impossible.<p>Lead Generation? This is a very search oriented field, and the Google search ecosystem will dominate this market until the Google search stronghold disappears.<p>Overall, I am not saying that mobile app startups are easy - but I think that there is a misconception about what they really are - thus comparing to their web counterpart, when the right analogy might be the software rack at Best Buy.