Has your iPhone been snooping on you?

Stephen Withers
Friday, 20 February 2009 03:52

IT Industry - Market

Yardley's analysis shows that given the amount of time that people spend using a particular application and current advertising rates, there simply aren't enough opportunities to display ads as an alternative to charging for the app.

"Only a few (<5 percent) high-performing applications are suitable for advertising right now, and you don't know if you've got one until after launch," he points out.

"In other words - unless there's something inherent about the app that screams free, sell it."

Given the pocket-money pricing of most apps, that's hardly likely to make much difference to the typical iPhone owner, who seems to be prepared to drop a few dollars on apps every month.

Yardley's advice will be good news for Apple.

The company takes a 30 percent cut of App Store revenues - and 30 percent of free is nothing.

Even a moderate increase in the proportion of paid apps could boost the App Store's profitability.