Three-quarters of revenue among top apps now generated by in-app purchases

By on September 22, 2011 at 3:00 AM.

Three-quarters of revenue among top apps now generated by in-app purchases

Freemium applications are driving in-app purchases according to a new report from Distimo, which was completed for the Verizon Developer Community. It is like getting a free ice cream sample at Baskin-Robbins: give a consumer a taste of something for free and then let them come back for more. Just 4% of all iPhone applications feature in-app purchases but, among the 200 highest-grossing applications in the iTunes App Store, 72% of the application revenue came from those with in-app purchases. That figure is up from just 28% last year. The revenue landscape is similar in the Android Market. 68% of the 25 top-grossing apps in the Android Market offer in-app purchases. Distimo also found that the average application in the iTunes App Store costs $3.84 while the average Android application costs $3.30. More →

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Apple’s OS X Lion downloaded 1 million times on launch day

By on July 21, 2011 at 5:40 PM.

Apple’s OS X Lion downloaded 1 million times on launch day

Apple’s OS X Lion was downloaded more than 1 million times during its first day of availability, Apple said on Thursday. The Cupertino-based company made the announcement just as Microsoft announced its earnings results for the fiscal fourth quarter — merely a coincidence, we’re sure. Presuming these were paid OS X purchases and upgrades, Apple grossed more than $30 million from Lion in just one day. “Lion is off to a great start, user reviews and industry reaction have been fantastic,” said Phil Schiller, Apple’s SVP of Worldwide Product Marketing, in a statement. “Lion is a huge step forward, it’s not only packed with innovative features but it’s incredibly easy for users to update their Macs to the best OS we’ve ever made.” OS X 10.7 Lion is available now in the Mac App Store for $29.99. Apple’s full press release follows below. More →

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HP may launch new NFC-enabled tablets and phones later this year

By on June 13, 2011 at 10:35 PM.

HP may launch new NFC-enabled tablets and phones later this year

HP is working on phones and tablets with built-in near-field communication (NFC) technology for mobile payments, Bloomberg reported on Monday. Much like Google Wallet, which will soon launch for the Nexus S and eventually other Android devices, HP hopes its customers will be able to use the company’s products to make mobile purchases in retail outlets. Similarly, HP has a plan to create an entire ecosystem where users will be able to to receive coupons or other benefits, such as loyalty points, from NFC-enabled advertisements. While sources told Bloomberg the products could launch by year-end, HP hasn’t been known to deliver new mobile devices to the market very quickly in the past. It’s also still unclear who the company’s mobile payment partners will be. More →

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Apple takes Lodsys patent fight to court

By on June 10, 2011 at 4:30 PM.

Apple takes Lodsys patent fight to court

A few weeks back, a patent-holding company called Lodsys began contacting developers and asking them to cough up money for using their in-app purchasing technology without a license. Apple intervened briefly and said that its developers are covered under its own license, but now the company has taken the matter to court with an official movement to intervene. The motion officially states:

Apple Inc. hereby respectfully moves to intervene as a defendant and counterclaim plaintiff in the above-captioned action brought by plaintiff Lodsys, LLC against seven software application developers for allegedly infringing U.S. Patent Nos. 7,222,078 and 7,620,565. Apple seeks to intervene because it is expressly licensed to provide to the Developers products and services that embody the patents in suit, free from claims of infringement of those patents.

Hit the jump for more of the back story. More →

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Apple defends developers in letter to Lodsys

By on May 23, 2011 at 4:40 PM.

Apple defends developers in letter to Lodsys

Earlier this month a company called Lodsys began sending letters to iOS app developers using Apple’s in-app billing system, asking each to license its technology separately. In a blog post on May 15th, Lodsys explained on its website that “the scope of [Apple’s] current licenses does NOT enable [Apple] to provide  ‘pixie dust’ to bless another (third party) business applications.” On Monday Apple issued a response to Lodsys explaining that iOS developers are safe under its licensing program. “Apple is undisputedly licensed to these patents and the App Makers are protected by that license,” Bruce Sewell, Apple’s senior vice president and general counsel, said. “The technology that is targeted in your notice letters is technology that Apple is expressly licensed under the Lodsys patents to offer to Apple’s App Makers.” It sounds like developers that have received the notification letters can breathe easy knowing that Apple appears to be offering some support. Hit the jump for more from Sewell’s letter to Lodsys. More →

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Apple hit with class action suit alleging targeting of minors with pricey in-app purchases

By on April 15, 2011 at 1:03 PM.

Apple hit with class action suit alleging targeting of minors with pricey in-app purchases

A Pennsylvania man has filed a class action lawsuit against Apple in a U.S. District Court in San Francisco alleging that the firm deliberately targets children with free applications that have appealing in-app purchases. Garen Maguerian believes that kids are purchasing in-app content and unknowingly costing their parents bundles of cash. In-app purchases are a great way to purchase extra content, such as levels or characters, in games. However, games such as Smurf’s Village or FarmVille can charge up to $99.99 for extra content that can be used to advance further in the game. “These games are highly addictive, designed deliberately so, and tend to compel children playing them to purchase large quantities of Game Currency, amounting to as much as $100 per purchase or more,” the suit says. Maguerian believes Apple is fostering these actions by allowing children to buy currency with the same iTunes App Store password they use to download free games. Since minors are entering the agreement with Apple to pay-up, Maguerian thinks that the contracts are not valid. “Apple has not offered to return to its account holders any of the millions of dollars it received from their minor children’s purchases,” Maguerian said in the lawsuit, which he is seeks refunds (including interest), damages, and legal fees. More →

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Apple App Store hits 10 billion downloads

By on January 22, 2011 at 1:34 PM.

Apple App Store hits 10 billion downloads

Just over a week has passed since Apple posted up their 10 billion App Store download counter, and that’s all the time it took to hit this ridiculous milestone. Yes, Apple has sold / delivered over 10 billion apps to customers in just a few years. With Apple’s developer following and customers growing rapidly, we’re sure it won’t take nearly as long to hit 20 billion. The person who downloaded the 10 billionth app will be announced within a couple days according to Apple. More →

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