Paid Apps On The Decline: 90% Of iOS Apps Are Free, Up From 80-84% During 2010-2012, Says Flurry
The trend toward more mobile applications going free continues, app analytics provider Flurry confirms this morning in a new report focused on app price changes over time.
Context & Ripple Effects
The paid-download model had been under pressure since iPhone app prices began falling in 2009. In 2010, Distimo found Android was already markedly more free-led than iPhone; Flurry’s new reading shows iOS pricing has moved decisively toward that free-app distribution pattern.
First-order effects
- iOS developers charging upfront face a catalog in which free entry is the default, making the initial price itself a sharper competitive disadvantage.
- Flurry’s pricing data gives app publishers a clearer benchmark: paid placement is becoming an exception rather than the baseline on iOS.
Second-order effects
- Competition shifts from securing a paid download to retaining users after installation; Flurry’s earlier data identified news and communication apps as loyalty leaders while personalization apps showed high churn.
- Android’s earlier free-heavy mix ceases to be as clear a point of differentiation as iOS developers adopt the same zero-upfront-price posture.
Third-order effects
- If the pattern persists, mobile app competition will be organized less around upfront purchase prices and more around whether publishers can sustain use after a free install.
- The app-store market becomes more dependent on post-download business models, increasing the strategic importance of publishers’ ability to convert engagement into revenue.
The trend: Mobile software is moving from paid downloads toward free distribution, with retention becoming more consequential to app economics.