There's no longer any doubt that freemium apps (apps that are free to download and generate revenue from in-app purchases) dominate Android. A new report from App Annie found that in the first quarter of 2014, freemium apps accounted for 98 percent of all revenue for the Google Play app store.
The report also noted that both downloads and revenue for Google Play increased by 50 percent year-over-year in the first quarter. Games continue to be very important to the mobile development industry, accounting for 90 percent of Google Play app revenues and 40 percent of Google Play app downlaods.
"Games played a major role in the acceleration of Google Play revenue growth, but almost all app categories experienced expansion," App Annie said. "The freemium business model advanced its domination of Google Play app revenue, and represents a growing proportion of downloads."