Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home CRM Systems Customer Service Business Intelligence Sales & Marketing More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Mobile Tech
Register for a certification exam.
Average Rating:
Rate this article:  
Apple
Apple's iTunes App Store Beats Android Market on Pricing

By Mark Long
February 23, 2012 4:51PM

Bookmark and Share
The iTunes App Store is a mature but still very closely controlled retail environment while Google's Android Market remains more open but also less secure and consumer friendly. Given the differences between iTunes App Store and Android Market, "developers and publishers use the stores in different ways," said analyst Tim Shepherd.
 

Related Topics

Android
App
Apps
Apple
iPhone



A new study released by Canalys Thursday demonstrates that the world's most popular iPhone apps are being priced significantly lower in Apple's iTunes App Store than the top paid Android apps in Android Market.

In the United States, for example, the average price of Android Market's top 100 is $3.74 per Android app, vs. $1.47 per iPhone app in the iTunes App Store.

Though it is a plus for developers to apparently be able to charge more for their apps on Android, the reality is that fewer people are willing to purchase apps on Android than on iOS today, said Rachel Lashford, managing director for mobile and Asia-Pacific at Canalys.

"Developers and publishers need to balance the iOS volume opportunity with a potentially greater value per download opportunity on Android -- where more apps command higher price points," Lashford said.

Though selling more apps at higher prices is the Holy Grail for developers, achieving big volumes on Android is no small challenge, Lashford said.

"More aggressive price competition around Android apps would help to encourage more consumers to make their first app purchases, drive greater download volumes, and ultimately be good for the vibrancy of the app ecosystem," Lashford said.

A Much Bigger Audience to Monetize

There are several key factors that are likely influencing the mobile app price discrepancy between Android Market and the iTunes App Store, said Al Hilwa, director of applications software development at IDC. For example, the early market leads that Apple gained when it launched its iconic iPhone and iPad should not be overlooked.

Developers price their apps "based on the volumes they anticipate to sell," Hilwa said. "The bigger the demonstrable audience to monetize over, the lower and more competitively you can set a price."

What's more, Apple has not only captured "the upper end of the user-base" but also has the ability to provide developers with access to a much less fragmented smartphone or tablet audience. "[This] creates a much bigger effective audience to monetize over," Hilwa said.

Yet another important effect is the level of promotion pricing. "In retail the price set is not always the price paid and so a promotionally oriented will show much higher average prices," Hilwa explained. "I think this is a big contributor to the effect."

Price Competitiveness Is Crucial

The iTunes App Store is a mature but still very closely controlled retail environment while Google's Android Market remains more open but also less secure and consumer friendly. Given the differences, "developers and publishers use the stores in different ways," said Canalys Senior Analyst Tim Shepherd. (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Apple Smart Watch Patent Surfaces
2.   iPhone 6: Bad for Apple Tablet Sales?
3.   GoTenna: Work-Thru for Dead Zones
4.   Nokia X Phones Had Identity Crisis
5.   Microsoft Axes Android Phones


advertisement
Android SMS Worm on the Loose
Malware lets bad actors cash in.
Average Rating:
Review: Microsoft's Surface Pro 3
Is it a tablet and laptop replacement?
Average Rating:
iPhone 6: Bad for Apple Tablet Sales?
Most likely, it will be a huge hit.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
34 European Banks Hit by Android-Skirting Malware
Criminals have been finding gaping holes in Android-based two-factor authentication systems that banks around the world are using. The result: 34 banks in four European countries have been hit.
 
New Web Tracking Technologies Defeat Privacy Protections
Recently developed Web tracking tools are able to circumvent even the best privacy defenses, according to a new study by researchers at Princeton and the University of Leuven in Belgium.
 
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 

Enterprise Hardware Spotlight
Contrary to Report, Lenovo's Staying in Small Windows Tablets
Device maker Lenovo has clarified a report that indicated it is getting out of the small Windows tablet business -- as in the ThinkPad 8 and the 8-inch Miix 2. But the firm said it is not exiting that market.
 
Seagate Unveils Networked Drives for Small Businesses
Seagate is out with five new networked attached storage products aimed at small businesses. The drives are for companies with up to 50 workers, and range in capacity from two to 20 terabytes.
 
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 

Mobile Technology Spotlight
Apple Patent for Smart Watch Comes to Light
Does a new smart watch patent issued to Apple provide a preview of the expected wearable from the tech giant? Some Apple-watchers are parsing the patent for signs of the coming product.
 
Will iPhone 6 Cannibalize Apple's Tablet Sales?
Could Apple’s iPhone 6 -- it’s so-called super-size phone due to hit store shelves this fall -- come back to haunt the smartphone maker? Some observers say yes; others say preposterous.
 
Axed Nokia X Phones Suffered from Lack of Identity
So long, Nokia X, we hardly knew you. The Nokia X phones Microsoft discontinued blend two rival operating systems, but leave out the best of each. As a result, the devices didn't become a runaway hit.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Business Intelligence | Sales & Marketing | Contact Centers | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.