Distimo, a US based firm recently published a report based on the analysis of a study showing statistics of the revenue generated by in-app purchase of iPhone applications which has increased to a whopping 71% from 53% in the January this year compared to the mere 24% of the paid applications. The figure shows the potential or the worthwhile of developing in-app iPhone applications. Identifying the potential, several of today’s smartphone application developers have started generating revenue through in-app purchases. So much so that Apple has to add a warning to the App Store stating ‘offers in-app purchases’ about such apps.
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What is In-App Purchase?
In-App purchase is practically very simple thing. You develop an application, and then upload it to the Apps Store but what you upload is not the full or complete version of the app. You retain the more exciting features or levels to the complete or upgraded versions and offer the most basic app. The users then not able to restrain the temptation of upgrading the app and go for the premium or full version of the app. This can be offered through the free as well as paid applications. It is like buying different car versions where you have the basic model with limited features. You can choose the higher models by paying the extra cost. So, instead of charging the full cost of the application, the developers charge higher amount by offering in-app paid apps with full features.
The Trend is Encouraging:
This trend of offering the in-app purchase is increasing at a very high rate though the figures vary region by region. Germany showed 61% of the total revenue earned by in-app purchase last February whereas in Asia, this figure is much higher compared to any other regions. In the countries like Hong Kong, Japan, South Korea, China, etc. the in-app revenue share is as much as 90%! Given the statistics, the trend of in-app purchases for iPhone applications is simply more than encouraging and by adopting this method as the more preferred business model, professional iPhone application developers and the publishers alike can earn big profits as there are no signs of stopping it.
Offers Better Opportunity of Success:
With more than 800,000 of iPhone applications available to the users worldwide in the App Store, it is a Herculean Task for the developers even to be noticed to the users rest alone to be found, purchased and used. Therefore, the developers offer free applications initially to get noticed because in such a scenario, if you label the app with a price tag, the users would never opt for your app. So, such a trick is the only resort left to the apps developers competing globally among each others. Whether it is an unscrupulous practice or not, it does give the developers better opportunity and visibility to their applications. And once the app is installed on the device, they are likely to earn revenue.
So, in-app purchase is just the trend which is fast catching up for iPhone application development. This is just the right time to hire an experienced and professional iPhone application developer from India or any Asian countries where this trend is experienced higher to exploit the growing trend to its fullest potential.