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'AppStore Secrets' From Pinch Media

February 20, 2009
Pinch Media, the same company that brought us evidence of the next iPhone revision, has posted an interesting slide show from a recent presentation given by CEO Greg Yardley at the New York iPhone Developers Meetup. The slide show breaks down application usage details gathered from over 30 million App Store downloads. The report includes quite a bit of data so we will try to touch on some of the more interesting points. The data shows that if an application isn't performing well a price cut is the best option. A price cut can increase demand 130 percent. On the flip side, a price increase drops demand 25 percent. Price applications higher to leave room for a possible decrease in the future. Applications see an alarming drop in first day usage. Generally speaking, paid applications perform better but not as much as you would think. Long-term audiences only make up about 1 percent of the total downloads. Don't forget that there is a ridiculous amount of $0.99 applications that many users may consider disposable. If you intend on developing an application, don't use advertisements because they generally don't work. Less than 5 percent of the applications available are suitable as advertising models. The "sticky" applications are the ones that perform the best but it is nearly impossible to know if your application will be "sticky." When in doubt, go with paid applications.
Paid applications have better longevity after installation but once again, not by much. In general, usage declines by about 1/3 in a month's time. The average time spent in a free or paid application stabilizes just under 5 minutes, except for games. Their usage stabilizes just under 8 minutes. What can we conclude from this data? Don't create an ad based application. Usage drops dramatically after the first day so be sure to create something engaging. Price accordingly so there is room to drop the price if need be. Finally, create a game. Sounds easy, doesn't it? The entire slide show is embedded directly below.

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