2 “ download rate of free applications.


This shift of both consumers and developers alike represents disappointing news for the Android Market, where in-app purchasing remains unsupported. It may go some way to explaining why Google’s Group Manager for the Android platform Eric Chu, recently told a conference he was “not happy” with app generated revenue on the platform.


7


Revenue generated from in-app purchase is increasing


“Apple will be the number one platform for a long time from a developer perspective, they have gotten so many things right….And paid content just doesn’t work on Android.”


Peter Vesterbacka, Developer, Angry Birds


While upfront payments for purchasing an app were the primary source of revenue for iPad apps in 2010, research by the analytics company Distimo has identified an increasing trend towards revenue generation via in-app purchases. They found that in December 2010:


In-app purchases on free apps accounted for 15 percent of total app revenue on the iPad. This figure was up from 7 percent in June 2010.


In-app purchases on paid apps accounted for 14 percent of total app revenue. This figure was up from 5 percent in June 2010.


Distimo observed that developers were making a shift to free applications with in-app purchasing as it allowed them to create revenue whilst harnessing the high


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