Blog

Apple Enables “Freemium” Model for iPhone Apps

Apple said that it will let iPhone application developers offer their users the option to buy additional content or features within a free app on its App Store. In an email sent Thursday to registered iPhone developers, Apple said in-app purchase options are now available for all software in its App Store: “You can also simplify your development by creating a single version of your app that uses In App Purchase to unlock additional functionality, eliminating the need to create Lite versions of your app,” the email reads.

Apple introduced in-app microstransactions for premium apps in March–developers can market new levels in an iPhone game, additional chapters or books in an ebook app or new tools in productivity apps. However, that meant pricing apps at a minimum of 99 cents.

Developers say that the latest announcement helps in two ways. First, it makes it much easier for them to make a business out of free apps. Until now, developers sold ads within their free apps or tried to convert users to a paid version with more content. The new capability could also help clean up the App Store because it would make it less necessary to offer both a free “lite” version and a paid version of the same app, a strategy that many developers used to try to make money.

Source: Wall Street Journal

Leave a Reply