By November 6, 2009

Second iPhone app store revolution has begun


The first iPhone app store revolution was the launch of the app store – the first one that provided automatic updates and global distribution and very good conditions for developers – 70% of sales goes to developers. Everybody had to rethink everything then. Now second time such moment of rethinking has arrived.

Now Apple has done it again and the second app store revolution has just begun. Think about it: how it is possible that an app that is FREE is among top grossing apps, i.e. apps that earn the most money:


It is possible thanks to introduction of “in-app purchases” whereas users can download an app for free, but to get stuff (here: in-game batteries and armor). We are talking here about “Eliminate Pro” app.

When you start this app with Internet connection you get this:

… and then you can log-in to an online game:

If you start the game when you are offline, then this screen appears:

… but fortunately offline practice (“bots”) is available:

… and you can pick some facilities to play in:

… and then you can play shoot-them-up game:

But it is practice mode. In full playing mode you go online but most interestingly you can pay cash with use of in-app purchase to get batteries for your guns.

As you can see the need for “trial version” (full but expires) of an app or “lite version” (simplified but free) is slowly disappearing.

Second revolution has not started with introduction of in-app purchase but with allowing it also in free apps! Now users are being able to download apps for free and then with help of in-app purchase they can purchase new levels or batteries or something. The thing is that this annoying “lite” apps are very simple and don’t have much levels and on the other hand once users are hooked, they are much more eager to purchase things inside of apps.

This change needs rethinking although we think that “free in basic version and get more with in-app purchase” might be annoying to users. But in the end developers can earn much more money from this new model so they put more effort into apps. Tough luck but it is big progress and huge change to the whole iPhone app store ecosystem.

The second iPhone app store revolution is upon us! We have no idea what will be next, but we reckon that probably Apple will find other innovative ways to suck more money out of iPhone users…

Get it here (price: FREE):

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Apart from iPhone, you might be interested also in Windows Mobile phones!

Posted in: Phones

About the Author:

Seasoned tech blogger. Host of the Tech Addicts podcast.
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