Choosing the iTunes Store over Google's Play Store for its seniority, Flurry's analysis reinforces this notion:
As you can see, 90% of all iOS apps are now offered for free, with 6% going for $0.99 a pop while the remainder is split among the higher price tier. “But why?” is a natural thing to wonder, and on this account we have to agree with the report – consumers have made their choice. Yes, ads are annoying, but they're a necessary evil and, as this turn of event exemplifies, preferred over paid content.
What's more, iPad owners really are the cash-cows that iOS devs should be targeting – and they do: according to Flurry, iPad apps on average cost over two and a half times more than iPhone apps, and over eight times as much as Android apps. The company notes that this is, at least partially, due to the higher income class iPad owners usually belong to.
No one likes getting skinned for their money, and the company's research agrees. According to an experiment it ran, many previously paid-for apps went free after significant testing of the price elasticity of demand for their apps. In simpler terms, that's simply how much demand for apps fluctuates according to a price change. The results indicate that an increasing amount of paid apps, even the ones that cost as little as $0.99, have decided to go free after testing the waters and finding out that even a dollar is a significant roadblock to demand. Demand that they can otherwise monetize via ads.
source: Flurry via TechCrunch