In-App Purchases generate record revenue percentage in Apple App Store

Distimo, which tracks over 2.6 billion downloads per quarter for major developers worldwide, has released a new report that’s based on an analysis of the all-time revenues and downloads of the top 250 highest grossing applications in February 2013. The analysis covers revenues generated through Apple’s App Store, and therefore ad revenue is excluded.

The major findings are:

• In-app purchases generated a record 76% of all revenue in the Apple App Store for iPhone in the U.S. in February 2013. At least 90% of all revenue was generated by in-app purchases in the Asian markets, which include Hong Kong, Japan, China and South Korea.

• The average revenue per download (ARPD) of the top 250 apps released since January 2012 is $0.99 in the U.S. This number is significantly higher in Japan, where the average user spends more on apps, and the ARPD of the top 250 apps released since January 2012 is $3.12.

• Among the top ten apps for February 2013, which were released since January 2012 in the U.S. for iPhone, the ARPD ranges from $0.37 to $7.04.

• Of the three various business models, freemium apps generate the least amount of revenue per download with an average of $0.93 when looking at the top 250 apps in the Apple App Store in the U.S. Ninety-two freemium apps generated less than $0.99, which is the lowest price point for paid apps.

• Paid apps without in-app purchases generate $2.25 in the Apple App Store for iPhone in the U.S. Paid apps with in-app purchases generate even more per download, indicating that users are not put off by the fact that they also have to pay for additional features within the app, in addition to the one-off fee they initially paid for their app.

• The average revenue per download for paid apps is higher on iPad than on iPhone in the Apple App Store in the U.S.: $4.04 versus $2.25, respectively.

• The average iPad download generates more revenue with in-app purchases than on iPhone. Freemium apps have an ARPD of $2.26 on iPad versus $0.93 on iPhone.

Read more in the full report available here.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.