Apple gives app developers easy access to cash

LONDON - Apple has opened a potentially lucrative business model to iPhone app developers, by allowing them to sell app upgrades and virtual goods within free apps.

Apple has changed the rules for its App Store
Apple has changed the rules for its App Store

Previously, in-app purchases were only permitted in paid-for apps, meaning developers had to first create two versions of the same app if they wanted to offer users a free trial.

The change Apple announced last night will change the app market by reducing the cost of development and increasing the speed to market, according to Ben Cusack, group creative director at MIG.

"App promotion is now key the to success with every games developer being able to publish a free to download and pay if you like it, pay for the next level model," he said. "In-app advertising should also massively increase and the developer will not need to recoup development costs for the free version."

David Lane, Bright AI managing director said there has long been a demand for this type of app model.

"It's the sister to the ‘free app containing advertising' model, in that you get hooked with the free download and token amount of content, the user feels no obligation and can ‘pay as you play', often spending more than on other non-free applications," he explained.

Apple have been clever in this move because the uptake of in app payments in apps  has been slow, the extra work required for the average developer to implement this mechanisms now has a potential payback, and incentive to place their app well in the free chart."

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Advertising Intelligence Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content