In honor of fashion week, it seems that this season for mobile apps – free is in. As posted on the Software Testing Blog Today, many developers assume that mobile users will be willing to pay a a certain amount of money if the app provides a significant value and is of good quality. However, this is not necessarily the case due to the fact that free downloads account for almost all mobile app downloads. A recent report from Gartner says that free apps account for 89% of downloads.
As covered by Ingrid Lunden of TechCrunch:
“Among those downloads, free will continue to reign supreme: 89% of those downloads worldwide will cost nothing. That is also appearing to have a knock-on effect on apps that are sold for a price: 90% of paid apps will cost less than $3.
These are pricing trends that will only become stronger. By 2016, Gartner is predicting the the mobile app market will see almost 310 billion downloads, with 93% of those free apps. These numbers point to growing opportunities for those companies that help app developers monetize their apps in other ways: not just through mobile advertising, but also through developing models for in-app purchases, subscriptions and other ways to get users to pay later for content. Indeed, in-app purchases, Gartner predicts, will drive 41% of all app revenues by 2016.”
Read the full post here.