Does this indicate that iPhone photo app users are more price-sensitive than generally thought? To Hans Hartman, Suite 48 Analytics president and lead author of the 89-page report, the finding is more revealing of competitive dynamics among suppliers than of differences in price sensitivity among users. “The photo app market is more competitive and more mature on iPhone than on Android. There are roughly three times more photo or video apps in the iPhone store (approximately 20,000) than in Google Play (7,500). Also, whereas only 32% of Android apps have been on the market for over a year, the majority of the top ranking iPhone photo and video apps are that old.”
To Hartman, it then comes as no surprise that iPhone apps compete primarily on price, while some boost their revenues from customers who are willing to pay extra for additional features through in-app purchasing functionality.
In fact, according to the study, 49% of iPhone apps older than one year have in-app purchasing functionality, versus only 29% of those released in the last six months.
Hans Hartman will present the key findings of the report at the Business Forum Imaging Cologne 2013 “Memories are more…SMART”, which will take place February 27-28, 2013, in Cologne, Germany.
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