Apple [AAPL] has added a new feature to the iPhone Application store that lets users purchase extra content through free iPhone applications.
Previously, this feature was only available through iPhone applications that cost money. This is bound to be good news for developers who will be able to offer free iPhone applications and then let users purchase additional content for a small fee. This new feature, known as “In-App Purchases,” opens up a plethora of opportunities for both developers and users.
Benefits for Developers
For developers, this change is monumental. It allows them to reach a broader audience by offering their applications for free initially. Once users are engaged with the app, developers can monetize their work by offering additional features, content, or services for a fee. This model is particularly beneficial for game developers who can offer new levels, characters, or power-ups as in-app purchases.
Moreover, this approach can lead to a more sustainable revenue stream. Instead of relying on a one-time purchase, developers can generate ongoing income as users continue to buy additional content. This could also lead to more frequent updates and improvements to the app, as developers have a financial incentive to keep users engaged.
Advantages for Consumers
This is also good news for consumers who will now be able to try a free application and then decide whether they wish to purchase additional content, without the need for having to pay for an application they may not want or need. This try-before-you-buy model reduces the risk for consumers, making them more likely to download and try new apps.
For instance, a user might download a free photo editing app and use its basic features. If they find it useful, they can then purchase additional filters, editing tools, or cloud storage options. This flexibility enhances the user experience and allows consumers to customize their app usage according to their needs and budget.
It is also bound to increase competition amongst developers, the majority of which will probably offer more free iPhone applications to customers, and then make their money from the additional content. This increased competition can lead to higher quality apps as developers strive to attract and retain users.
It will be interesting to see how many of the current paid applications are now offered free by developers to entice users to purchase the additional content. This shift could potentially disrupt the current app market, leading to a new standard where most apps are free to download with optional in-app purchases.
Additionally, this model can benefit niche applications that might not have a large user base willing to pay upfront. By offering the app for free, these developers can attract a larger audience and monetize through specialized content or features that appeal to their specific user base.
In conclusion, Apple’s decision to allow in-app purchases in free applications is a win-win for both developers and consumers. Developers gain a new avenue for monetization and user engagement, while consumers benefit from the ability to try apps before committing financially. This change is likely to spur innovation and competition in the app market, ultimately leading to better and more diverse applications for iPhone users.
via Gadget Lab
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