ANY DO APP VS PREMIUM SOFTWARE

Interestingly, $8.99 is the least common price point for apps under $10 comprising only 0.36% of paid apps. More than 62% of premium apps are priced between $0.99 and $2.99. When analyzing the pricing models of premium apps in both the App Store and Google Play stores, it’s clearly a race to the bottom.

In fact, 86% of premium apps in the App store and 76% in Google Play cost less than $5. The price points of premium apps, as you might expect, are densely populated along the border of freemium. Compare this to the less than 8% of apps on Google Play that are paid. “I’ve never paid for an app, where are all these premium apps you speak of?” Somewhat surprisingly, we discovered that over 43% of apps in the App Store are premium. Continue reading for all our insights into a premium app strategy or jump to our infographic below.

But in a freemium world, is premium still a viable business model? In this data study of more than 3,900 premium apps on both Apple’s App Store and Google Play, we look at pricing, ratings, and storage space requirements across industries.

Many apps today are free, relying on advertising and in-app purchases to sustain the company’s business model.

ANY DO APP VS PREMIUM SOFTWARE

Billionaire entrepreneur Marc Andreessen famously said, “Software is eating the world.” 1 The traditional business model of collecting an upfront premium for an app must have looked like a tasty appetizer - because software seems to have eaten its hors d’oeuvre and is now washing it down with a tall glass of freemium.

Any do app vs premium