Half of iPhone app income is now generated in-app

Following the wake of successful apps that are distributed for free but charge customers to enhance their app experience, it seems like more app developers are switching to this method of selling apps on the iTunes App Store. In the latest results published by the Distimo monitor, there has been a trend of in the dropping of app prices across the whole app store, with a huge number of apps on the top 100 lists. While developers reduce the prices of their apps or give them away, they have started charging for in-app content to compensate and it looks like the move is working. Reports show that almost 50% of all iPhone revenue is now made from in-app purchases. So if you’re a developer looking to sell your game, you might want to take note of this trend and make use of it. Then again, the mindset of people change, and this year things might be different. How many of you prefer purchasing in app content to enhance a free app instead of paying a price up front for the whole thing?