While early concerns over a 'race to the bottom' suggested only offering apps at rock bottom prices would deliver sales, the firm's Gene Munster claims an increased downloads rate on the store has actually been coupled by a rise in the average app selling price.
On the up and up
Munster's estimates suggest the average number of apps downloaded by an iOS user in a calendar year will rise from 51 in 2010 to 83 in 2011 a jump of 61 percent year on year.
Alongside this increase, Munster also reports that the average paid app selling price is increasing, up 14 percent year on year. That comes after an 18 percent decline in 2010.
"We believe this trend points to the increasing importance of an app store with a broad selection of tested apps to drive device sales," adds Munster in a note.
"Smartphone users are showing an increasing appetite to use apps to add features to their phones, and iOS has the leading app ecosystem."
However, rather than developers simply hiking the cost of their titles, the increase is partly down to the growing prevalence of comparatively high priced iPad apps, Munster states.
Win-win for Apple
Either way, it's a combination that's set to lead to increased App Store revenues in the coming years, estimated as just shy of $7.7 billion in 2012.
As well as generating cash for Apple the firm taking 30 percent of all downloads and in-app purchases made on the App Store Munster speculates that the strength of the marketplace itself draws in more consumers.
"Even though our qualitative analysis does not factor in the sale of additional devices, we believe the App Store drives device sales," he said.
"We see a virtuous cycle of Apple's robust app ecosystem adding features and functionality to the iOS devices, which drives sales, which makes the ecosystem more robust, which encourages more developers to write apps, and the cycle repeats itself."
[source: Apple Insider]
