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Revenue from freemium apps shoots up, paid ones stagnate on both Android and iOS

By Daniel Petrov

Published: Oct 26, 2012, 9:22 AM

24comments

Revenue from freemium apps shoots up, paid ones stagnate on both Android and iOS

Who said freemium will never make it in the cutthroat world of apps? Looking back , the model has apparently proven very successful for developers, both on iOS and Android. AppAnnie tracks more than 700,000 applications, and found out that revenue from freemium iOS apps has increased four times for the last two years, while just in 2012 that same revenue for devs in the Play Store is up 3.5 times.

Meanwhile the income from paid apps has stagnated on both platforms. Top apps on them are increasingly moving to the freemium model, and the prediction is that by 2015 revenue from it will top $5.6 billion, a full 64% of the total take-home from apps.

Freemium is not suited for every app, of course, and people are willing to pay for a great product no hesitation, but the trend is to move towards no upfront costs for installing an application on your phone or tablet.

via GigaOM

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Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.