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70% of iPhone apps will be free, report says

by Mark Rowland on Jun 11, 2008 at 01:13 PM

Piper Jaffray analyst Gene Munster, a WWDC attendee, decided to hang around after the keynote and survey a few developers about their work with the iPhone SDK.

One of the most interesting of Munster’s findings was the fact that a whopping 70% of developers interviewed said their apps will be free. Also, 50% of developers are making “Enterprise Apps,” with 15% using location based APIs, 20% writing video games and entertainment apps, and another 15% writing “Enterpirse-level apps.”

With only 30% of iPhone apps costing money, and with an average price of $2.29 for apps that actually charge money, it seems like not very many developers followed Apple’s advice about charging for apps no matter what. With most apps being free, and a majority of paid apps costing under $3, this really starts to bring the App Store’s profitability into question, and contradicts reports that the App store will be a huge area of large amounts of profit for Apple and 3rd party developers. 

What do you think of all this? Do you think 70% of apps will actually be free, or do you think Gene happened to mostly interview developers who will provide free apps? Sound off below in the comments.

Via [Apple Insider]

 

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