Whenever I evaluate a business, regardless of industry, my first few questions are always centered around:
1) Industry: What is the size of the addressable market? Who are the major players in the space? Is the market relatively fragmented? What are the near term growth or expansion opportunities?
2) Sales: How does this business make money? (i.e. free application that gets paid based on advertisement revenue, software as a service, subscription model, paid upgrades, etc.)
3) Audience: Who is paying for this software / buying this item and how difficult is it to acquire each additional user?
In addition to the WSJ article, Mitchell released a poll last week that Baby Boomers are more likely to download and purchase health apps when recommended by a doctor. This of course sounds very reasonable, but should also send a lightbulb to healthcare companies regarding who they should market to — get doctors on board, and soon patient users will follow.