Hunger Grows for Apple Store Apps
It’s no surprise that the number of apps in the Apple Store keep on growing and growing exponentially. The question is what will the traffic bear? What value do users place on these apps? According to a recent report by analyst Gene Munster of Piper Jaffray, who’s been following the Apple Apps downloads rates against the number of units sold, IOS device owners are not only increasing their app usage, but paying more for them as well.
Munster reports that the typical user will download 83 apps this year compared to 51 in 2010. That’s a whopping 61 percent increase in one year. “Smartphone users are showing an increasing appetite to use apps to add features to their phones and iOS has the leading app ecosystem.” Actually, it looks like a voracious appetite. Granted, the price per app is not that high. Munster reports that 82 percent of App Store business is from free apps, while the 18 percent of downloads that are paid apps average $1.44. This price went up recently, Munster says most likely because the iPad apps are higher than the iPhone an iPod touch.
In fact, Apple says that 15 billion apps have been downloaded from their store over the past three years. Munster adds that this trend demonstrates “the increasing importance of an app store with a broad selection of tested apps,” that are driving Apple device sales. “Smartphone users are showing an increasing appetite to use apps to add features to their phones, and iOS has the leading app ecosystem.”
All this bodes well for app creators and developers. It shows there is a market for their wares. However, it also shows that the competition is going to become even keener, and that it will be continually more difficult to stand out amidst all the contenders.
[Source: CNN Money]