Eneko Knörr , CEO of Ideateca, gave the opening conference of the DevUp 2011 event organised by the company in Barcelona. In it, he presented some of Ideateca’s data and then went on to explain his feelings about the mobile application market and the App Store. For him, the future can be summed up in one sentence: “Paid applications are dead” .
It’s a pretty straightforward phrase, but according to Eneko the market trends support it. While a large percentage of the App Store’s applications are paid, users prefer to download the free applications. That’s why Ideateca’s CEO has advised all developers to focus on creating free applications and monetizing them with the options Apple offers.
In fact, several examples have been presented that show that companies that have launched paid applications have seen their revenues multiply as they removed the price from the application and moved on to monetize it with advertising, purchases within the same application (such as Angry Birds’ Mighty Eagle) or options to buy points or special advantages in games.
Of course, the word ‘free’ is very attractive in the App Store . Not to forget about apps at prices as attractive as 0.79 euros, but according to Eneko the future lies in free with payment options or properly implemented advertising. Apple has seen this trend, and that’s why it has encouraged to launch its own iAd network. Is this reflected in your devices? What percentage of the apps you have installed in your device with iOS are free?