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In-app Purchases Amount for 72% of iPhone App Revenue Says Verizon

New data released by Verizon reveals that 72 percent of iPhone app revenue comes from in-app purchases.

Considering the fact that only 4 percent of the apps utilise the in-app purchasing capabilities offered by Apple, it’s a big deal.

The company studied data from 200 highest grossing apps on the US Apple App Store as of July 2011, to declare the results.

According to the company, free apps with in-app purchasing feature account for 48 percent revenue, paid apps with in-app purchasing account for 24 percent while paid apps without in-app purchasing account for 28 percent.

Apple’s App Store, which recently breached the 15 billion app download mark, also saw increasing number of free and paid apps download. The downloads for free apps increased by 34 percent over 2010 while paid apps download only increased by 7 percent.

The App Store currently leads the market with more than 500,000 apps while Google’s Android trails behind. However, Android Market is expected to surpass the App Store sometime this year or early next year.

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Ravi Mandalia

Ravi Mandalla was ITProPortal's Sub Editor (and a contributing writer) for two years from 2011. Based in Ahmedabad, India, Ravi is now the owner and founder of Parity Media Pvt. Ltd., a news and media company, which specializes in online publishing, technology news and analysis, reviews, web site traffic growth, web site UI. Ravi lists his specialist subjects as: Enterprise, IT, Technology, Gadgets, Business, High Net Worth Individuals, Online Publishing, Advertising, Marketing, Social Media, News, Reviews, Audio, Video, and Multi-Media. He has also previously worked as Dy. Manager - IT Security at (n)Code Solutions.