In-App purchases account for record proportion of iPhone app revenue

The rise to prominence of the in-app purchase is now clear for all to see, as news emerges that in app purchases account for 76% of all U.S. iPhone App Store revenue.

That figure, released in a report today from Distimo, shows a huge leap in in-app revenue. In January 2012, figures showed that in-app purchases accounted for around 53% of iPhone App Store revenue, last months figures show a huge increase that really testifies to the success of in-app purchases, and more specifically the “Freemium” app model.

revenue-breakdown

As you can see, 71% of the 76% came from Freemium apps…

Forsaking the up-front revenue gained by paying for an app, developers are instead opting to offer users in-game purchases, which in some cases has seen the revenue of popular apps quadruple, the chart above surely shows that the tactic is working.

The success isn’t globally shared however. For example, Germany’s figures remain at 61%. In Asia however, Honk Kong, Japan, China and South Korea saw 90% of its revenue come from in-app purchases.

Granted, much of the Freemium revenue may have been generated by meddling children buying gold coins behind their parent’s backs, however the results remain clear. The Freemium app model is certainly generating more income for developers than up-front costs.

Which do you prefer? Do you prefer not paying for apps? Or would you favor an upfront fee in exchange for access to all the game’s content from the beginning? Leave your comments below, and be sure to follow me on Twitter @TiP_Stephen

Via: TechCrunch

 

 

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