81% Of Downloaded iOS Apps Are Free

According to some research by Gene Munster/Piper Jaffray, of the four billion app downloads on iPhones, iPods and iPads, 81 per cent are free downloads, and the other 19 per cent average a cost of $US1.49.

Doing more maths, such numbers imply that Apple has pocketed $US428 million from apps since the launch of their App Store - about 29 cents per app - while shelling out about $US81 million to distribute said apps.

It sounds like a lot of money, until you realise it represents just 1 per cent of the $US33.7 billion in Apple's gross profit over the same period of time.

Of course, there are a few points to note:

1. Apps sell iPhones, so they indirectly produce much more profit 2. "Free" apps that included advertising were not separated in any special way 3. iAds are the clear response to this free app bundled with advertising model, meaning... 4. Apple has long seen this app revenue discrepancy, and they want a bigger piece [AppleInsider]

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