(SAN FRANCISCO, California – March 13, 2012) Velositor, Inc., a leader in mobile app research, today released financial data related to the freemium app business model, with in-app purchase, for the Apple iPhone App Store.
The model examines in-app purchase revenue from apps that were free to download. This type of freemium business model is growing steadily among mobile app developers and is forecasted to earn the lions share of app revenue over the next few years.
In-app purchase revenue US and Canada
Using combined data from 2011 and 2012, the average iPhone app developer that designs a free app with in-app purchases, not including game apps, and targets Canadian iPhone users is expected to earn $4,226.71 in the first month of its launch. But, when looking at the US market this value increases by more than 5x to $23,482.15.
If game apps are included in the average, along with all the other iPhone app categories, this value balloons to $11, 558.18, from Canadian iPhone users. Within the US this figure rises to $63,885.34, again more than 5x the value of the Canadian market.
Highest revenue generating iPhone app category
“When looking at the app revenue by iPhone category types, social networking, gaming and productivity apps are expected to generate the largest amounts of in-app purchase revenue in the first 3 months of an apps launch”, said Raza Zaidi, founder and CEO of Velositor.
Further details from the study
For the full study ‘iPhone Freemium Revenue Model, In-App Purchase Revenue’. The full study includes the average in-app purchase revenue for the first three months. Additionally, it is broken out by over 20+ iPhone app categories including books, business, education, entertainment, games, fitness, lifestyle and medical to name a few.
Velositor’s mission is to inspire and nurture creativity within the mobile app space by providing human and market insights to mobile app creators. This comes in the form of app research from around the world and market intelligence such as financial models to project developer app revenue. The only market research firm exclusively dedicated to supporting mobile app developers, the majority of the content is free while the small amount of content that is priced with at home app developers and startups in mind.
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