Paid Apps Vs Free Apps in Apple (AAPP)
October 28, 2009 1:46 PM
The debate on paid apps vs free apps for Apple (NASDAQ: AAPP)continues. Paid applications are used better and longer when compared to the use of free applications, according to a report. By paying for applications a user seems to develop an attachment to it. Users do not seem to mind the price attached to the apps to a certain price limit.
However,once the application price crosses $ 4.99, then, users display strong sensitivity to the price. 610 million of over 2 billion Apple Store downloads were paid applications. It estimates that these downloads mean $ 900MM revenues to developers since the launch of Apple Store. It stated that bulk of the Apple Store revenues were due to application downloads. However, these revenues are not evenly distributed.
