distimologoIn what seems like a logical result of economic pricing strategies, iPhone app developers who put their apps on sale see an average increase in revenue of 41% on the first day, and total increases of 22% after 15 days. App store analytics provider Distimo shared the findings in a new research report.

TechCrunch writes:

When a developer decides to put an application on sale, there’s a delicate balance that has to be achieved. The sale price has to be low enough to encourage more downloads, obviously, but it also needs to be low enough that it encourages enough download volume to make up for the lost revenue.

To examine what happens during when apps go on sale, Distimo examined the 100 top grossing apps in the iPhone App Atore, iPad App Store and Android Market. On the first day of the sale, the average revenue increase by +41% in the iPhone App Store, and by 15 days in, was up by +22%. On the iPad App Store, the day one effect was even greater: up +52% on day one and up +19% by day 15.

4 revenue effects of sale
All this is well and good, but not all developers see such impressive results. 44% of iPhone apps lose revenue during the sale, with 23% of devs seeing a drop in revenue of more than 20%. In general, offering a small discount from $7.99 to $6.99 doesn't increase revenue as much as a larger drop from $7.99 to $4.99.

The full report from Distimo goes into much greater detail, with additional details about average app pricing and more information about the impact of different price cuts on revenue.

Top Rated Comments

Biscuit411 Avatar
175 months ago
Also noted - When it's cold, water freezes...
Score: 8 Votes (Like | Disagree)
uknowimright Avatar
175 months ago
things sell more on sale? no way
Score: 6 Votes (Like | Disagree)
rmwebs Avatar
175 months ago
Well thats a brand new shocking statistic... :rolleyes:
Score: 4 Votes (Like | Disagree)
thewitt Avatar
175 months ago
We have dropped the price by 25% and seen nothing interesting in sales trends, then dropped the price by 50% and seen interesting numbers - for a short period of time.

The biggest problem when you play this game us the perceived value of your app.

If you launch at $4.99 and then drop to $1.99 on sale, what happens when you go back to $4.99? If your app is desirable enough, it keeps selling, but new customers may feel like they overpaid, and are not happy customers at all.

We have also released an app for a low introductory price, missing some planned features, then increased the price when the full feature set was in place. This rewarded early adopters and enabled us to get more real world feedback for the updated version.

Having special sales events - well publicized with clear end dates - can also stimulate impulse buys, but you had better understand your real costs before you sell several thousand copies of your app at a net loss.
Score: 1 Votes (Like | Disagree)
DESNOS Avatar
175 months ago
Kinda like taxes!
Score: 1 Votes (Like | Disagree)
HiRez Avatar
175 months ago
and when Amazon has a free app of the Day, that app's sale goes up 999%?

Most are crap, but some are legit ($15 office apps, Sketchbook Mobile)... and it keeps me checking it every day.

Apple should consider something similar.

If they do that, they had better NOT do what Amazon got caught doing, giving away developers' (non-free) apps for free as Free App of the Day without their permission, netting the developer $0. That's a way to lose trust with your devs really fast.
Score: 1 Votes (Like | Disagree)

Popular Stories

iPhone 17 Pro Lower Logo Feature 1

iPhone 17 Pro Coming Soon With These 14 New Features

Monday June 30, 2025 1:08 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are less than three months away, and there are plenty of rumors about the devices. Apple is expected to launch the iPhone 17, iPhone 17 Air, iPhone 17 Pro, and iPhone 17 Pro Max in September this year. Below, we recap key changes rumored for the iPhone 17 Pro models:Aluminum frame: iPhone 17 Pro models are rumored to have an...
A18 Pro Chip

New MacBook With A18 Pro Chip Spotted in Apple Code

Monday June 30, 2025 8:05 am PDT by
Apple is developing a MacBook with the A18 Pro chip, according to findings in backend code uncovered by MacRumors. Earlier today, Apple analyst Ming-Chi Kuo reported that Apple is planning to launch a low-cost MacBook powered by an iPhone chip. The machine is expected to feature a 13-inch display, the A18 Pro chip, and color options that include silver, blue, pink, and yellow. MacRumors...
iPhone Car Key WWDC 2025

Apple Announces 13 Automakers Planning to Offer iPhone Car Keys

Friday June 27, 2025 11:42 am PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. During its WWDC 2025 keynote, Apple said that 13...
maxresdefault

Five Features Coming to AirPods Pro 3

Friday June 27, 2025 10:52 am PDT by
Apple hasn't updated the AirPods Pro since 2022, and the earbuds are due for a refresh. We're counting on a new model this year, and we've seen several hints of new AirPods tucked away in Apple's code. Rumors suggest that Apple has some exciting new features planned that will make it worthwhile to upgrade to the latest model. Subscribe to the MacRumors YouTube channel for more videos. Heal...
macbook air spacegray purple

Apple Planning to Launch Low-Cost MacBook Powered By iPhone Chip

Monday June 30, 2025 3:20 am PDT by
Apple is planning to launch a low-cost MacBook powered by an iPhone chip, according to Apple analyst Ming-Chi Kuo. In an article published on X, Kuo explained that the device will feature a 13-inch display and the A18 Pro chip, making it the first Mac powered by an iPhone chip. The A18 Pro chip debuted in the iPhone 16 Pro last year. To date, all Apple silicon Macs have contained M-series...
anker power bank recall

PSA: Anker Recalls Multiple Power Banks Due to Fire Risk

Friday June 27, 2025 4:16 pm PDT by
Popular accessory maker Anker this month launched two separate recalls for its power banks, some of which may be a fire risk. The first recall affects Anker PowerCore 10000 Power Banks sold between June 1, 2016 and December 31, 2022 in the United States. Anker says that these power banks have a "potential issue" with the battery inside, which can lead to overheating, melting of plastic...
Chase Sapphire Reserve Apple Perk Feature

Chase Sapphire Reserve Card Introduces New Perk for Apple Customers

Wednesday June 25, 2025 2:08 pm PDT by
Chase this week announced a series of new perks for its premium Sapphire Reserve credit card, and one of them is for a pair of Apple services. Specifically, the credit card now offers complimentary annual subscriptions to Apple TV+ and Apple Music, a value of up to $250 per year. If you are already paying for Apple TV+ and/or Apple Music directly through Apple, those subscriptions will...
replay all time playlist apple music

Apple Music Debuts All-New Personalized Playlist

Monday June 30, 2025 7:16 am PDT by
As part of its 10-year celebrations of Apple Music, Apple today released an all-new personalized playlist that collates your entire listening history. The playlist, called "Replay All Time," expands on Apple Music's existing Replay features. Previously, users could only see their top songs for each individual calendar year that they've been subscribed to Apple Music, but now, Replay All...