21 Feb 2009
A study into the way people use downloaded iPhone applications has shown that most are barely used at all.
The research from analytics firm Pinch Media showed that only 30 per cent of people who had purchased an application from the Apple App Store actually used it within a day of installing it, and the figures were even worse for software that was free.
"Paid applications generally retain their users longer than free applications, although the drop-off is still pretty steep," said the company.
"Users stop using the average applications pretty quickly. The long-term audience is generally one per cent of total downloads."
The findings, presented at the New York iPhone Software Developers Meetup, contain worrying news for software developers working on the iPhone platform.
The bulk of applications have a very short half life, and most are abandoned by users relatively quickly. While users value paid applications more than free ones, the actual usage rates barely differ.
Price, however, is important. Dropping the price of an application increases demand by 130 per cent, Pinch Media said, while raising the price cuts downloads by 25 per cent.
Advertising within applications is not as effective as charging for the initial download, according to the data. Advertising rates are so low that it is better to charge for the application rather than rely on revenues from long-term users watching adverts.
In the short term, sports applications were the most popular among users. But it is games that hold users' interests in the long term.
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A worrying omen for the consumer apps market
Such low usage figures for free and - in some cases - paid-for apps is a worrying omen, and one that does not bode well for the consumer apps market moving forward. In contrast, business apps are far less likely to fall victim to the same fate. Organisations are crying out for intuitive, tailored apps that combine cost savings with increased productivity levels - particularly given the current economic climate. With this in mind, developers would be wise to diversify - the business realm could benefit enormously from their creativity and skill. Rikke Helms, Dexterra
Posted by: Rikke Helms 26 Feb 2009
It is about the net utility of the iphone instead of the value of a single app
I know this article is supposed to represent the developer's view, but let's look at the user's view (in this case, my view as an iphone user/owner). From my perspective it is not about the value of any single app. Instead it is about the net utility of the iphone itself. Sure I download lots of apps that I don't use very often but each and everyone has a specific purpose at a specific time/place and adds to the net utility of the iphone itself. For instance, I have an app that shows the NYC metro system - I only use this app when I go to NYC which is about 3 or 4 times a year but when I'm in NYC I use this app all the time and it makes the iphone a more useful device (and I don't need to carry around a separate metro map). Similarly, the CompareIt application - I only use this app when I'm shopping but when I do want to compare sales prices it is perfect - once again it makes the iphone a more useful device and I don't need to carry around a separate calculator. Similarly, the Shakespeare app - I don't use it often but when I need to look something up it is immediately available - once again it makes the iphone a more useful device and I don't need to carry around a book with the complete works of Shakespeare. So please consider how how each app adds to the value of the iphone before claiming that iphone apps are useless.
Posted by: Greg Lomow 22 Feb 2009