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The Freemium Trend Has Increased Revenue, But Not Downloads

Friday Jul 27th 2012 by Developer.com Staff

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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