Paid Applications on the App Store

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This week, we’re focusing on paid applications. By providing some analysis of paid applications, we hope to answer some common support questions and give developers a sense of how their application’s performance compares to the ‘typical’ paid application.

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Paid Applications on the App Store

  1. 1. “PaidApplications”<br />Adapted from Presentation by Greg Yardley at 360|iDev<br />
  2. 2. Paid apps drive revenue<br />We think paid apps have been about ~610MM of the two billion AppStore downloads so far, and have generated ~$900MM in revenue for developers in 15 months. <br />They make up 77% of the AppStore, and they’re purchased by over 50% of iPhone / iPod Touch owners.<br />Photo Credit:flickr-AMagill<br />
  3. 3. The mythical typical paid app<br />If your paid app was exactly average, it’d have:<br />~9,300 downloads<br />(vs. average free app downloads: ~71,000)<br />~$12,100 revenue<br />(net to developer: ~$8,500) <br />But no app is average! The AppStore is so top-heavy, you’ll either do dramatically better or – more likely – much much worse.<br />
  4. 4. Top-heavy distribution<br />
  5. 5. Downloads not linked to price<br />Note: Adjusting the price of an app raises or lowers sales predictably – you can’t sell more copies with a price increase! <br />
  6. 6. Paid apps are used more than free apps<br />

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