Business Models in Two-sided Markets: an Assessment of Strategies for App Platforms

„App platforms” are electronic software distribution markets for mobile devices like smartphones or tablets. They have gained popularity after Apple launched its AppStore in 2008. Since then, app platforms have transformed the entire mobile communication industry including mobile network operators, device producers, software suppliers, content providers, advertisers, etc. Platforms (like AppStore) that intermediate between two distinct groups of customers connected through indirect network effects can be analyzed effectively using the theory of two-sided markets. The interdependencies of customers, platforms and developers require consideration of strategic issues not present in traditional models. These issues may pertain to all development phases, including platform design, launch and competition and thus, have an effect on existing and new business models in this