Newsletters
Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Computing Digital Life Discovery Space More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note

www.apc.com
Apple/Mac
Average Rating:
Rate this article:  
Apple
Apple's iTunes App Store Beats Android Market on Pricing

By Mark Long
February 23, 2012 4:51PM

Bookmark and Share
The iTunes App Store is a mature but still very closely controlled retail environment while Google's Android Market remains more open but also less secure and consumer friendly. Given the differences between iTunes App Store and Android Market, "developers and publishers use the stores in different ways," said analyst Tim Shepherd.
 

Related Topics

Android
App
Apps
Apple
iPhone



A new study released by Canalys Thursday demonstrates that the world's most popular iPhone apps are being priced significantly lower in Apple's iTunes App Store than the top paid Android apps in Android Market.

In the United States, for example, the average price of Android Market's top 100 is $3.74 per Android app, vs. $1.47 per iPhone app in the iTunes App Store.

Though it is a plus for developers to apparently be able to charge more for their apps on Android, the reality is that fewer people are willing to purchase apps on Android than on iOS today, said Rachel Lashford, managing director for mobile and Asia-Pacific at Canalys.

"Developers and publishers need to balance the iOS volume opportunity with a potentially greater value per download opportunity on Android -- where more apps command higher price points," Lashford said.

Though selling more apps at higher prices is the Holy Grail for developers, achieving big volumes on Android is no small challenge, Lashford said.

"More aggressive price competition around Android apps would help to encourage more consumers to make their first app purchases, drive greater download volumes, and ultimately be good for the vibrancy of the app ecosystem," Lashford said.

A Much Bigger Audience to Monetize

There are several key factors that are likely influencing the mobile app price discrepancy between Android Market and the iTunes App Store, said Al Hilwa, director of applications software development at IDC. For example, the early market leads that Apple gained when it launched its iconic iPhone and iPad should not be overlooked.

Developers price their apps "based on the volumes they anticipate to sell," Hilwa said. "The bigger the demonstrable audience to monetize over, the lower and more competitively you can set a price."

What's more, Apple has not only captured "the upper end of the user-base" but also has the ability to provide developers with access to a much less fragmented smartphone or tablet audience. "[This] creates a much bigger effective audience to monetize over," Hilwa said.

Yet another important effect is the level of promotion pricing. "In retail the price set is not always the price paid and so a promotionally oriented will show much higher average prices," Hilwa explained. "I think this is a big contributor to the effect."

Price Competitiveness Is Crucial

The iTunes App Store is a mature but still very closely controlled retail environment while Google's Android Market remains more open but also less secure and consumer friendly. Given the differences, "developers and publishers use the stores in different ways," said Canalys Senior Analyst Tim Shepherd. (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



UCS Invicta: Integrated Flash Why wait for the future? Unlock the potential of your applications and create new business opportunities today with UCS Invicta Series Solid State Systems. Take advantage of the power of flash technology. See how it can help accelerate IT, eliminate data center bottlenecks, and deliver the peak application performance and predictability your users demand. Click here to learn more.


 Apple/Mac
1.   MacBook Pros Get Update, Price Cut
2.   U.S. Firms Fish for Growth Overseas
3.   Will Next OS X Bring New Apple Grief?
4.   Apple and Samsung Feel the Heat
5.   Apple Faces Suit Over Work Breaks


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
U.S. Firms Fish for Growth Overseas
Tech trendsetters are going abroad.
Average Rating:
Earnings, Excitement Grow for Apple
Momentum mounts as rumors swirl.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tor Internet Privacy Service Warns Users It Was Breached
You may never have heard of the Tor Project, but the Internet privacy service is making headlines. Tor’s devs say users might be victims of an attack launched against the project earlier this year.
 
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
 
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.
 

Navigation
Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
Environment
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.