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
140 months ago
Also noted - When it's cold, water freezes...
Score: 8 Votes (Like | Disagree)
uknowimright Avatar
140 months ago
things sell more on sale? no way
Score: 6 Votes (Like | Disagree)
rmwebs Avatar
140 months ago
Well thats a brand new shocking statistic... :rolleyes:
Score: 4 Votes (Like | Disagree)
thewitt Avatar
140 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
140 months ago
Kinda like taxes!
Score: 1 Votes (Like | Disagree)
HiRez Avatar
140 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

USB C Over Lightning Feature

EU Passes Law to Switch iPhone to USB-C by End of 2024

Tuesday October 4, 2022 3:30 am PDT by
The European Parliament today voted overwhelmingly in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The proposal, known as a directive, forces all consumer electronics manufacturers who sell their products in Europe to ensure that a wide range of devices feature a USB-C port. This...
General iOS 16 Feature Yellow

10 New iOS 16 Features Coming Later This Year

Monday October 3, 2022 2:41 pm PDT by
iOS 16 was released to the public three weeks ago with a customizable Lock Screen, the ability to edit iMessages, improvements to Focus modes, and much more. And in the coming months, iPhone and iPad users have even more new features to look forward to. We've rounded up 10 new features coming to the iPhone and iPad later this year, according to Apple. Many of the features are part of iOS...
magsafe charger orange

Apple Releases New MagSafe Charger Firmware

Tuesday October 4, 2022 12:09 pm PDT by
Apple today released updated firmware for the MagSafe Charger that is designed to work with the iPhone 12 and later and the AirPods Pro 2. The new firmware is version 10M1821, up from the prior 10M229 firmware. Note that in the Settings app, you'll see a different version number than the firmware number, with the update displayed as version 255.0.0.0 (the prior firmware was 247.0.0.0). The...
maxresdefault

Video: AirPods Pro 2 vs. Bose QuietComfort II

Monday October 3, 2022 12:50 pm PDT by
Apple on September 23 officially launched the second-generation version of the AirPods Pro, introducing updated Active Noise Cancellation, Adaptive Transparency, improved sound, and more. Right around the same time, Bose introduced new QuietComfort II earbuds with many similar features, so we thought we'd compare the two to see which has the edge. Subscribe to the MacRumors YouTube channel for ...
iOS 16

Apple Preparing iOS 16.0.3 With More Bug Fixes Following iPhone 14 Launch

Monday October 3, 2022 7:53 am PDT by
iOS 16.0.2 was released last month with several bug fixes for iPhone 14 issues, excessive copy and paste permission prompts, and more. Now, evidence suggests that Apple is planning to release iOS 16.0.3 with additional bug fixes. Evidence of an upcoming iOS 16.0.3 software update has shown up in MacRumors analytics logs, which have been a reliable indicator in the past. There are several...
ipad pro m1 feature

Gurman: Apple Event This October Remains Unlikely, No Touch ID for iPhone 15

Sunday October 2, 2022 6:41 am PDT by
Apple is developing new iPad Pro, Mac, and Apple TV models, and at least some of these products will be released in October, according to Bloomberg's Mark Gurman. However, Gurman continues to believe that Apple is unlikely to hold an event this month. In the latest edition of his Power On newsletter, Gurman said "the big iPhone 14 unveiling last month was probably it for Apple in 2022 in...
General YouTube Feature 1

You May Soon Need to Be a YouTube Premium Subscriber to Watch 4K Videos

Monday October 3, 2022 4:29 am PDT by
YouTube may make watching videos in 4K quality on the platform exclusive to only YouTube Premium subscribers, according to screenshots posted by users on Twitter and Reddit. On Reddit (1,2) and Twitter, some users have started to recently notice that on iOS, and presumably across other platforms also, YouTube is now saying that in order to watch videos in 4K, the user must be a paying...
Apple SIM Card

Apple SIM No Longer Available for Activating New Cellular Data Plans on iPads

Sunday October 2, 2022 8:04 am PDT by
As of October 1, Apple SIM is no longer available for activating new cellular data plans on supported iPad models, according to an Apple support document. Introduced in 2014, the Apple SIM was designed to allow iPad users to activate cellular data plans from multiple carriers around the world. Initially, the Apple SIM was a physical nano-SIM card, but it was embedded inside later iPad Pro...