11 JUL

iOS Device Owners Downloading More Apps at Higher Prices, Analyst Says

by Marianne Schultz
 

Fortune reports that Apple iOS device owners are downloading more apps this year than before at higher prices, according to a client report by Piper Jaffray analyst, Gene Munster. Munster’s report comes on the heels of Apple’s announcement last week that more than 15 billion apps have been downloaded from the App Store.

Munster reportedly built his own model to calculate what’s going on with the App Store, coming to the conclusion that iOS device users will download more apps in 2011 compared to 2010 and that the average selling price of apps is up in 2011 compared to a decline of in 2010.

More apps: The average iOS device owner will download 83 apps in 2011 vs. 51 in 2010, a 61% increase year over year. “Smartphone users are showing an increasing appetite to use apps to add features to their phones,” Munster writes, “and iOS has the leading app ecosystem.”

More expensive apps: The ASP (average selling price) per app is rebounding. ASPs are up 14% y/y in 20111 vs. an 18% decline in 2010. “After the initial race to the bottom in App Store pricing,” says Munster, “we are seeing users pay up to add features and games to their iOS devices.”

The breakdown of paid vs. free apps in App Store sales over time

Image courtesy of Fortune

Compared to Apple’s App Store with more than 425,000 apps, Android’s App Market offers less than half as many apps with around 200,000 available. While 200,000 is not a small number by any means, it speaks to the robustness of Apple’s ecosystem comparatively and goes a long way to explain the growing sales and popularity of iOS devices.

Munster also notes that the majority of apps in the App Store are free – 82% of them, according to his calculations. And speaking of free apps, our sister site TouchArcade points out a report from Flurry, a mobile analytics firm, stating that freemium (free to download with in-app purchase upgrades available) games are earning more revenue for developers than paid games. With this kind of solid data, developers have incentive to make apps free (while offering additional virtual items and features for purchase in-app), a scenario that can be ideal for the budget-minded iOS device owner or those who like to test drive apps before plunking down any hard-earned cash.

I would be remiss if I didn’t remind you that AppShopper can help you get even more apps for free or at a lower price by notifying you of sales through our Wish List function via email or push notifications on your iPhone, iPod touch, or iPad through our official AppShopper app. The app is free (ad-supported with permanent ad removal costing $1.99 via in-app purchase) and is universal to offer an optimized interface on the iPad, iPhone, and iPod touch.

1 Comment

  1. frd750

    I needed an update on an application on my Mac that was donation ware. at the developers site the update was free. At the Mac app store it was $9.99 suggesting it might be a good idea to check all options in the future.

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