Freemium beats Premium, says App Annie

App Annie Intelligence, which tracks more than 700,000 apps, reports that freemium apps – free apps that have in-app purchases – are experiencing impressive revenue growth worldwide, far outpacing premium apps in both iOS and Google Play stores. Over the last 24 months, worldwide revenues for freemium apps on iOS have more than quadrupled. In 2012, worldwide freemium revenues on Google Play have grown 3.5X. Now, freemium apps generate 69 percent of the worldwide iOS app revenue and 75 percent of global Android app revenues. Meanwhile, premium revenues for both app stores remained relatively flat in these time periods.

This confirms earlier reports of this trend by Distimo, IHS iSuppli and others.


Author: Stijn Schuermans

As a Business Analyst, Stijn focuses on visualizing and quantifying the business models of the different players in the mobile domain. His particular interest is in understanding how technology becomes value-creating innovation and which consequences this has for mobile company strategy. By applying modern economic theory to the mobile industry, Stijn supports the workshops, reports, presentations and blog posts of VisionMobile.

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