Almost 90 per cent of apps downloaded in 2011 were free. According to Gartner, less than 3 billion of the almost 25 billion apps downloaded last year were paid apps. Gartner forecasts that the ratio of free to paid downloads will continue to rise through 2016.
This is why, as we’ve highlighted before, freemium is the dominant business model in mobile apps. A paid app can deter potential revenue-generating customers. And pricing often becomes a race to the bottom. With freemium, developers can let consumers test-drive a free app and determine if they want to upgrade.
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