The Freemium Trend Has Increased Revenue, But Not Downloads

Friday Jul 27th 2012 by Developer.com Staff
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Free apps now make three times as much as they did in 2010.

According to a new report from Distimo, the shift towards the in-app purchase model has led to a dramatic increase in revenue for the mobile development industry. In fact, the 100 highest-grossing iOS apps now bring in triple the revenue of 2010's 100 highest-grossing apps. Interestingly, at the same time, the increased competition in the App Store has pushed the average downloads per app to its lowest level ever.

The picture is a little different for paid iPhone and iPad apps. Paid downloads have increased 13 percent since 2010. However, app prices have dropped 16 percent. As a result, average revenues for paid apps have declined 5 percent in two years.

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