A new report from App Store analytics company Distimo suggests that the prices of the most popular iPhone apps on the App Store have decreased by 15% over the first quarter of 2010.
Whilst the average price of all apps available worldwide remains unchanged, the prices of the top 100 apps on the App Store have dropped by over a sixth, with the prices higher in Europe than anywhere else in the world.
The most popular apps in Europe worked out on average to be $3.86 whereas applications in North America ($2.43) and Asia ($2.69) came in considerably lower. Whilst it could be assumed that apps in other continents were generally less expensive, Apple employs a fixed price structure for any currency other than the US Dollar reducing the price if rates fluctuated.
The report found that the most expensive European applications were Navigation related apps, helped by the fact that companies would release different apps that covered different regions in Europe. TomTom for example offer apps that cover Western Europe, Eastern Europe, UK and Ireland.
The report adds credibility to the suggestion that iPhone users are becoming a lot more selective about making purchases via the App Store. The App Store has matured to feature over 100,000 apps and price can be one of the key influences when making the decision to purchase from a selection of similar apps.
There has also been a considerable increase in the availability of in-app subscriptions within free applications giving iPhone owners the opportunity to test the free offering before parting with their money. There is no mention of whether in-app subscriptions count towards the figures but could help to lower the average price of popular apps if taken into account.
There’s no mistaking iPhone apps bring in a huge amount of revenue for developers and Apple. The price fluctuation could just indicate a shift in consumer purchasing, requiring developers to streamline their pricing structures to compete effectively in an increasingly saturated market.
[Source - MoCoNews]
and can't it just be that there are significantly more “free” apps being introduced?
and can't it just be that there are significantly more “free” apps being introduced?
and can't it just be that there are significantly more “free” apps being introduced?
and can't it just be that there are significantly more “free” apps being introduced?
It's not going to burst if prices are decreasing- Apple just opened stores in 13 new countries- so look for higher demand for apps.
It's not going to burst if prices are decreasing- Apple just opened stores in 13 new countries- so look for higher demand for apps.
It's not going to burst if prices are decreasing- Apple just opened stores in 13 new countries- so look for higher demand for apps.
It's not going to burst if prices are decreasing- Apple just opened stores in 13 new countries- so look for higher demand for apps.
Without looking at the numbers, wouldn't the high cost of satnav apps and the subsequent price drop in those apps, be inordinately responsible for the reduction in the top apps?
If you have two or three satnav apps in the top ten that are all priced over $50 that then drop their price by $10, the change in only this one category and in only a few apps will have a bigger effect due to their outlier status in terms of original price.
A more accurate reflection would be to look at the top 100 apps and see what percentage of those apps had a price drop.
Without looking at the numbers, wouldn't the high cost of satnav apps and the subsequent price drop in those apps, be inordinately responsible for the reduction in the top apps?
If you have two or three satnav apps in the top ten that are all priced over $50 that then drop their price by $10, the change in only this one category and in only a few apps will have a bigger effect due to their outlier status in terms of original price.
A more accurate reflection would be to look at the top 100 apps and see what percentage of those apps had a price drop.
Stuart, this is a very good point. When looking at the most consistently downloaded apps across Europe on the store, they tend to be games like Doodle Jump, Angry Birds, Plants vs. Zombies coming in at 59p (or associated regional price).
Distimo's CEO did say that prices were initially raised when the Sat-Nav apps were introduced, the lower average reflected now is a correction since they have been more competitively priced.
Stuart, this is a very good point. When looking at the most consistently downloaded apps across Europe on the store, they tend to be games like Doodle Jump, Angry Birds, Plants vs. Zombies coming in at 59p (or associated regional price).
Distimo's CEO did say that prices were initially raised when the Sat-Nav apps were introduced, the lower average reflected now is a correction since they have been more competitively priced.
Stuart, this is a very good point. When looking at the most consistently downloaded apps across Europe on the store, they tend to be games like Doodle Jump, Angry Birds, Plants vs. Zombies coming in at 59p (or associated regional price).
Distimo's CEO did say that prices were initially raised when the Sat-Nav apps were introduced, the lower average reflected now is a correction since they have been more competitively priced.
Brands will still want to be on there as they have different objectives like awareness, lead gen, loyalty etc etc lalala
Is the App Store Bubble About To Burst? abner@comemail.net