in-app purchase

Microsoft has issued some new statistics concerning downloads of apps from both the Windows Store and the Windows Phone Store, and perhaps the most interesting number in this update is that all of the top 20 highest grossing Windows Phone apps have some kind of in-app purchase feature.

Microsoft also said that of the top 50 highest grossing Windows Phone apps, 44 used in-app purchases. The company stated:

"In-app purchase of durable and consumable digital products is the model that has grown the fastest in the Windows Phone store, and is becoming an increasingly significant source of revenue in the Windows store. Advertising also continues to grow, although it is a more significant source of revenue in Windows than Windows Phone. The paid apps model is beginning to show a slight decline as developers move to the "freemium" app model that offers both in-app purchases and/or advertising as a potential revenue source. As the adoption of in-app purchasing continues, particularly of consumable in-app purchases, we expect this to become an increasingly significant source of revenue."

Microsoft added that while the majority of Windows Phone apps have in-app prices at or below $2, the apps in the top 20 have in-app purchase options that go up to $99.99, "with the average being $24.84 and a mean of $10.99."

Microsoft also offered some general updates on app downloads for the Windows Store and Windows Phone Store. Windows Phone 8.1 became the primary download source for the entire Windows Phone platform in September, and 70 percent of all downloads from the Windows Store now come from Windows 8.1

Games remain the most popular app category for both Windows Phone and Windows 8.1. The US is by far the biggest market for Windows Store downloads, with a solid 33 percent of the worldwide market share. For Windows Phone, the US still leads at 12 percent but China is right behind at 9 percent, India is third at 8 percent, Brazil is fourth at 7 percent, and the UK is fifth with 6 percent.

What do you think of these latest app download statistics and the rise of in-app purchases for Windows Phone apps?

Source: Microsoft