Friday, 11 October 2013

Are Apple's Paid Apps Dead?

If you buy paid apps, you will think ‘no’ and if you only purchase free apps, you will be thinking ‘yes’.  The truth is, paid apps have slowly declined since their first release when the App store was born but people do still pay money for their apps

App producers are finding it more difficult to make money on their paid apps, but many are resorting to in-app purchases.  Although many people are questioning whether paid apps are dead or not, the revenues made through apps on both the Apple’s App Store and Google Play are on the rise and have been all year.

Apple introduced in-app purchases to its App Store in 2009 alongside the release of its iOS 3.0 software. This has opened up a whole new source of revenue for developers.  The idea behind this was, instead of purchasing an app from the outset, developers could create a free-to-download app which can offer in-app purchases for added extras to the original gameplay, for example.

These are called ‘Freemium’ apps and have rapidly become the standard for many of the most successful apps and games within the App Store.  In fact, according to new statistics, in-app purchases within the U.S’s App Store make up 76 per cent of their whole revenue. Paid apps only make up just 5% of this revenue.

So, what is the future of app pricing, you ask? Good question. The main problem app developer’s face is that finding the perfect combination of impressive download numbers, high conversion rates and high prices can be difficult. An app like Candy Crush Sage though, ticks all of these boxes and does it well.

When considering an app or an idea, it is worth keeping on top of the latest trends like this to see which will be a good return on investment for you. Freemium apps might be the way to go in the interim but every App Store customer is different, so paid apps are a long way off becoming extinct.

We would like to know what you do when downloading apps. Do you buy fewer paid apps but always end up making in-app purchases, or are most of your apps paid for before downloading? Let us have your comments.

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