Freemium is new trend for smartphone apps
TweetFollow Us on Twitter

Freemium is new trend for smartphone apps

Nothing is impossible when it comes to setting app prices. Freemium models are on the rise in the US, UK and Germany. Staggered prices combined with cleverly communicated value boost customer loyalty.

The international App Store Study 2012 conducted by the global strategy and marketing consultancy Simon-Kucher & Partners in the US, UK and Germany analyzed the prices of 2,400 apps by price and category. Looking at the top 100 downloads and top 100 purchases in the Apple AppStore, the study shows consensus concerning price models and ranges across the countries.

Although upfront payment is the most common price model for apps (40%), freemium models are on the rise. Almost one-third of all apps use a freemium model already: a new trend in the industry. Looking at the price levels and the differences between upfront and in-app prices, prices strongly vary.

App developers have created two different freemium price models. They offer apps for an upfront payment and then offer in-app purchases ("freemium I"), or they offer free-to-download apps with the option of in-app purchases later on ("freemium II"). The freemium approach is becoming an increasingly popular monetization strategy for app providers. What's more, there are almost twice as many apps without upfront payment than apps with upfront payment in the whole freemium market.

"'Download first, pay later’ is the name of the game here," says Annette Ehrhardt, senior director at Simon-Kucher.

The majority of app prices for upfront and in-app offers range from US$1 to $5. Yet app prices vary strongly.

"Uniform pricing for products of varying value is never the best approach," says Ehrhardt. "The cost for an in-app purchase can be up to ten times higher than for an upfront app."

For more info go to https://www.simon-kucher.com/en/node/4122 .

 
AAPL
$100.75
Apple Inc.
+0.64
GOOG
$577.36
Google Inc.
+1.00
MSFT
$46.36
Microsoft Corpora
-0.08
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

apeFilter (Music)
apeFilter 1.0 Device: iOS Universal Category: Music Price: $6.99, Version: 1.0 (iTunes) Description: | Read more »
Shred It! Review
Shred It! Review By Jennifer Allen on September 30th, 2014 Our Rating: :: GORGEOUS BUT BASICUniversal App - Designed for iPhone and iPad It might look lovely, but Shred It! is a pretty shallow endless runner/snowboarding game.   | Read more »
It Came From Canada: Angry Birds: Transf...
Anyone afraid that throwing Transformers into the Angry Birds mix would result in a Michael Bay-level of childhood pillaging can rest easy. While Rovio’s famous fowls may be a 21st century staple, Angry Birds: Transformers wears its affection for the 80s on its sleeve. But is mere retro reverence enough to justify this crossover? We find out in... | Read more »
Galaxy Trucker Review
Galaxy Trucker Review By Rob Thomas on September 30th, 2014 Our Rating: :: IN FOR THE LONG HAULiPad Only App - Designed for the iPad We got a great big convoy, rockin’ through the night… the endless night of outer space, that is. And the ships are made out of pipes. Don’t question it. It’s Galaxy Trucker and it’s now on iPad! | Read more »
Moon and Sun – children’s book Review
Moon and Sun – children’s book Review By Amy Solomon on September 30th, 2014 Our Rating: Moon and Sun is a fable-like children’s book with lush illustrations.   Developer: Marcio Monteiro Price: $3.99 Version: 1.0 App Reviewed on: iPad 3 | Read more »
Kairosoft Finally Brings The Pyraplex to...
Kairosoft Finally Brings The Pyraplex to iOS Posted by Jessica Fisher on September 30th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Yeti’s Parole Officer Review
Yeti’s Parole Officer Review By Jennifer Allen on September 30th, 2014 Our Rating: Universal App - Designed for iPhone and iPad Yeti’s Parole Officer proves that looks aren’t everything in this entertaining, if plain, piece of interactive fiction.   | Read more »
Record Keeper and World Wide Words – Two...
Record Keeper and World Wide Words – Two New Final Fantasy Games Arrive on iOS in Japan Posted by Ellis Spice on September 30th, 2014 [ permalink ] | Read more »
iPollute Review
iPollute Review By Nadia Oxford on September 30th, 2014 Our Rating: :: iPOLLUTE, uPOLLUTEUniversal App - Designed for iPhone and iPad iPollute is a delightful-looking pollution simulator, though it’s a bit light on “game” content.   | Read more »
This Week at 148Apps: September 22-26, 2...
Your Source For The Latest App Reviews   | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.