As we’ve said before, there’s money to be made in mobile apps, though not from ads or download fees, but rather from in-app purchases. And according to recent report by Distimo, in-app purchases have never generated more revenue.
Here’s TechCrunch with the details:
Though it’s well-known that many of today’s mobile applications generate revenue through in-app purchases, a new report released today shows how powerful this money-making mechanism has become. Last January, just over half (53 percent) of iPhone App Store revenue in the U.S. was attributed to in-app purchases, but as of last month, that number has climbed to a record 76 percent.
The figure varies by region, however. In Germany, for example, it’s lower – only 61 percent of revenue in February came from these in-app sales. Meanwhile, in Asian markets the number soars. In Hong Kong, Japan, China and South Korea, at least 90 percent of all revenue comes from in-app purchases.
Not surprisingly, Distimo found that the majority (71 percent) of apps were “freemium” applications, meaning that the app itself was free, but other features, virtual goods, extra levels, services, upgrades, and more are available for sale once the app is on the iPhone. Another 5 percent of apps using in-app purchases were paid applications, and around a quarter (24 percent) of iPhone apps in the U.S. were paid applications only, without in-app purchases involved.
As the use if in-app purchases increases, so too will the bugs associated with the feature. Bugs of this variety have a very quantifiable cost, so be sure to test your mobile apps extensively before, during and after launch.