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Apple’s App Store May Be Proving A Costlier Affair Says Fiksu Report
Apple Inc.’s virtual marketplace for applications may have turned out to be a costlier affair than previously bargained for, claims a report from Fiksu, a digital marketing company.
While application developers have been paying more to attract buyers & users, their apps have not been able to clock higher amount of downloads. According to Fiksu, developers who engage in an active campaign to garners users ended up paying close to US$ 1.44 to attract each loyal user. At least that was the case in June this year. This is approximately higher by 13% than last year.
Owing to rapid increase in number of free & ad-based alternatives to many useful applications, premium priced applications are finding fewer takers. This clustering has resulted in over-crowding of the app markets & forced developers to resort to artificially jack-up popularity of the applications. Tricks like ad-word bidding & compromising pricing ratios (sharing of the profits with Apple) to garner customers have resulted in developers ending up paying more for getting people to buy their applications.
Interestingly, from the millions of apps on Apple App store only about 200 or so clocked about 4.63 Million downloads per day. That’s up marginally by 2.7% compared to the 13% increase in expenditure. However, as per revenue sharing data, Apple has so far paid out about US$ 5 billion to developers whose apps feature on the app store & are bought by users. Additionally, some 30 Billion apps have so far been picked up. Such statistics do reveal a healthy platform to earn a sizable income. In fact, Flurry, a mobile-research company predicts the market for apps, be it Google’s Google Play for Android its OS or Apple’s iTunes for its iOS will generate almost US$ 9 Billion, a massive 60% Year on Year (YoY) Growth! In the words of Tim Cook, CEO of Apple, “Most developers aren’t complaining.”
With India’s scenario fast mimicking the western trends in terms of app downloads & usage, what more should Indian developers work on?
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2012-08-10 00:20:20
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