Free mobile applications are continuing its growth, as per a new survey / study which found that “iPhone users spend an average of 19 cents per app downloaded, while Android users spend only 6 cents per download”.
This indicates that iPad owners are less reluctant to spend money on mobile downloads than Android users. On average the Apple app is about 50 cents per app.
This is however another story for Android users. They are much more reluctant to pay for software and have spent only 6c per download. This is just under one third of what iPad owners pay and “more than eight times less than the average spent by iPad users”. This is as per analytics firm Flurry who collected this data from more than 350, 000 applications on iOS and Android.
According to Mary Ellen Gordon, what this suggests is that in exchange for free content, especially Android users, are willing to see in-app advertising.
It has also been found that many developers, after testing their pricing structure, eventually choose to give their apps away gratis. Gordon says this bodes well for the future of in-app advertising.
“Another reason for the download trend of application prices is an increasing reliance by developers on in-app purchases”. A study has found that 71 percent of iPhone app revenue comes from “freemium” titles, in other words, those which are free to download, however any extra content is available through in-app purchases.
It is for this reason that the Apple iOS App store is known as a major platform whereby developers can earn money for their software. Thus the App Store is the default choice for developers even though, in terms of market share, the Android is the major smartphone platform.
According to a study, top applications on iOS can earn as much as 4.6 times more than those on Google’s Android platform. In fact, in April the top 200 grossing applications on the iOS App Store had an income of $5.1 million per day as opposed to Androids top 200 grossing downloads which made $1.1 million per day.