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Report: In-app purchases generating record revenue
By Phil Dzikiy | 03.29.13

In-app purchases generated a record 76 percent of total App Store revenue in the U.S. in February, according to a report from Distimo, a company that tracks app performance and metrics. The new report tracks revenues generated through the App Store, so ad revenue is excluded. At least 90 percent of all Asian market revenue came from in-app purchases, Distimo claims. Despite this, freemium apps were found to generate the least amount of revenue per download — just 93 cents per download based on the top 250 apps in the U.S. App Store, which might suggest that developers are hurting themselves by giving away apps in hopes of subsequent purchases, apart from building larger user bases. Paid iPhone apps without in-app purchases generated an average of $2.25 per download, and paid apps with in-app purchases generate even more revenue. iPad paid apps average $4.04 in revenue per download.

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