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4% of apps are generating 72% of all iPhone App Store revenue says Distimo

That's the proportion using IAP

4% of apps are generating 72% of all iPhone App Store revenue says Distimo
While the headline figure from Distimo's presentation deck from the Verizon Developers Conference was that 72 percent of revenue for iPhone apps comes from in-app purchases, that's not the whole story.

More striking is only 4 percent of iPhone apps include IAP.

The figure seemed so low, we had to check with Distimo that it was correct.

It is.

Freemium cash-in

The reasons are partly due to legacy issues, as IAP was enabled in June 2009, almost a year after the App Store launched.

The other is that although IAP works well for certain categories - notably games - the upfront paid model (or purely free) remains the most popular business model. Obviously, although games are the single largest App Store category, overall it's a minority.

Still, IAP is more popular for certain types of content.

According to Distimo's analysis, as expected, the proportion of free games that include IAP is significantly higher at 11 percent.

It's a similar situation with iPad apps; 7 percent of dedicated iPad content includes IAP, rising to 20 percent for free games

But, the conclusion remains that a mere 4 percent of iPhone content on the App Store is generating 72 percent of the revenue.

And that's why you should be including IAP in your games.

Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

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