by Cory Elsmore | Twitter.com/thefndtn
Since the release of the iPad, many developers have been releasing apps at a higher price point (sometimes significantly so) than equivalent iPhone versions of the same apps. It is noted in the latest Distimo report that the average cost for an iPad app is about 20% higher than an app for the iPhone (Report Summary).
The other very interesting piece of information in this report is that 80% of apps downloaded for the iPad are paid for by their users, whereas on the iPhone platform the percent of paid apps is only 73% (see graph below). Based on both the higher average price points and the higher percentage of paid applications, the iPad is definitely drawing more dollars per app out of end users.
Is this a simple case of price gouging by developers attempting to draw more money from the early adopter? That is too simple a stance to take. If apps were priced too high, I would expect the data to skew toward people sticking to free and low cost apps. That is not the case. Users are embracing the more expensive software, and this shows that they plan on use the iPad for more than novelty purposes. Apps on the iPhone can be very cool, but the small screens and slower performance provide a more limited experience. This means the apps built for the iPhone are built with this limited experience in mind. Most are skewed down versions with fewer features than you would expect from a desktop level app. The iPad changes that.
Apple has repeatedly said that the iPad is a brand new type of device; one with the goal of changing how we work and think. Developers are pouring huge amounts of effort into bringing beautiful apps to the platform. More importantly, developers are delivering iPad apps with the same features that you would expect in a full fledged desktop application. The next several months are going to be very interesting as we see the iPad find its niche more completely, and users really decide what the device is.
To download the latest Distimo Report, click here.
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