Tuesday’s Apple Rumors — Free Apps Make Money

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Here are your daily Apple news items and rumors for Tuesday:

Free Apps Just $14: Mobile analytics firm Flurry has released a study (reprinted at TUAW) breaking down the revenue generated by mobile apps in multiple price ranges on Android and Apple (NASDAQ:AAPL) iOS devices like the iPhone and iPad. According to its findings, app developers might want to start offering their products for free and invite customers to purchase content within the app rather than offering the full product at a low price. The average user of a free app that offers paid add-on content spends $14 in the app, 13% of users spend more than $20, and half of all revenue generated by free apps with add-on content is generated by that 13%.

Time to Face the Change: The June 30 deadline Apple set requiring all businesses selling wares through the App Store, particularly competitors offering e-books and electronic periodicals, to offer the same products through the Apple-controlled storefront and the Web has come and gone. Apple made some revisions to its stringent new policy in June when it said businesses would be allowed to offer lower prices on some publications through their own Web stores than in the App Store, but they would not be able to link to those outside sources from an iOS app. A Monday report at Apple Insider listed a number of businesses who have had to change their business on the iPad and iPhone as a result of the changes. Amazon (NASDAQ:AMZN) and Barnes & Noble (NYSE:BKS) all had to release updated versions of their respective Kindle and Nook e-reader apps removing the “Buy” links that redirected to their websites. The News Corp.-owned (NYSE:NWS) Wall Street Journal is no longer selling content through an iOS app at all, opting instead to sell digital editions directly through its website to avoid Apple’s 30% take of all App Store purchases. Google‘s (NASDAQ:GOOG) Google Books App was briefly taken off of the App Store entirely, but according to 9 to 5 Mac, it returned sans links to the Google Books Web store.

33 More Countries: The Apple App Store broadened its reach Thursday, opening for business in 33 new countries. The company’s iPhone and iPad storefront now does business in 123 countries.

As of this writing, Anthony John Agnello did not own a position in any of the stocks named here. Follow him on Twitter at @ajohnagnello and become a fan of InvestorPlace on Facebook.


Article printed from InvestorPlace Media, https://investorplace.com/2011/07/apple-rumors-free-apps/.

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