Saturday, February 2, 2013

The falling price of Applications positively affects their income

The price drop is the general rule in business applications. Developers are willing to reduce the prices of their digital creations, especially for a limited time, in order to increase revenue. Some applications even have come to place free for unlimited time, hoping to earn revenue through in-app purchases. Some examples: Evernote has temporarily free app Penultimate, and National Geographic World Atlas for free now for the first time.

Netbot, the Tweetbot for, is also now free. On Friday they released a new survey that underlined the positive effect of price changes in discharge volumes and revenues of applications iPad and iPhone in the App Store.

cambios precio aplicaciones La Caída del Precio de las Aplicaciones Afecta Positivamente a sus Ingresos

Lowering the cost of application affects a higher percentage of income

Research firm Distimo has made ​​a report which shows that if the price of an iPhone application revenue over 159% increase in seven days. Therefore, the price drop is an effective marketing tool to boost short-term profits.

The survey found that 850 iPhone applications and 930 applications for iPad changed their price at least once in 2012. Surprisingly, lower the price has more dramatic effects on iPhone applications in their counterparts for the iPad, which usually carry some extra remarkable.

Distimo says that revenues from the application purchases and in-app purchases contribute to the increase in long-term income.

ingresos apps La Caída del Precio de las Aplicaciones Afecta Positivamente a sus Ingresos

The research firm found that price cuts made ​​application downloads for the iPhone grow by 1665% (a 871% of the iPad for downloads). Most price changes are within a range of between $ 1 and $ 3, and is bigger on the iPad applications.

Specifically, over 20% of the price changes imply a change greater than $ 4 in applications for iPad on the App Store. When the price goes up again, resent downloads. Distimo writes:

"The effect on lower-priced downloads ends when the price increases again. The volume of downloads of iPhone applications in the App Store falls 46% within five days of the price increase again. For downloads for iPad, the fall is somewhat larger, losing 57% when the price increases. "

The iPhone App Store has less elasticity, which means that income more strongly react to any price change is made in the store. For iPhone applications, a price drop of 1% leads to an increase in income of 1.2% in five days (0.7% for iPad applications).

precios apps iphone La Caída del Precio de las Aplicaciones Afecta Positivamente a sus Ingresos

The App Store is home to a number of specialized applications that facilitate tracking price changes. My favorites are, for example, AppAdvice and AppShopper.

These applications allow you to define custom criteria to monitor price changes and put your favorite apps on a watch list, with prices alerts when applications change or become free.

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Track | iDownloadblog

iPadizate , best blog on the Apple iPad.

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