Mobile application and games have been growing fast. The recent Apple’s Iphone has kick started the mobile content growth. A US based survey by ABI research says that more than 100USD . ABI research surveyed 235 US smartphone users who installed applications on their devices in 2008.
17% of respondents says that they more than $100. That level of spending is especially significant given the low cost of most mobile applications, ranging from as little as a dollar or two at Apple’s iPhone App Store, to at most about $25.
“Apple is seen by some as hurting the market with its iPhone App Store,†says senior analyst Jeff Orr, “It drives the price of content down to $1-2, using a model similar to its successful iTunes music store. If you exclude Apple from the mix, applications for other platforms cost about $7-25 each.â€
Many developers, lacking the resources to author applications for all available smartphone platforms, have to focus on one. That means they have a “margin vs. volume†quandary: sell many copies for the iPhone at a very low price of which the developer receives 70%, or sell fewer via one of the other application storefronts, but charge a higher price and earn more per transaction.
