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Iphone Businesses IOS

iPhone Owners in US Spent $40 Each on Apps in 2016 (cnet.com) 131

Posted by msmash from the how-we-shop dept.
Zoey Chong, writing for CNET: iPhone users in the US are spending more and more on apps and in-app purchases. Spending climbed to an average of $40 per person last year, according to research released Monday by Sensor Tower. This is up from $35 in 2015. Gaming continued to lead the way, accounting for more than 80 percent of Apple App Store revenue in the US. Spending in that category increased from $25 on average per person in 2015 to $27 last year. This may not be the biggest surprise, given that 2016 witnessed the rise of Pokemon Go, which crossed $1 billion in revenue worldwide last month.
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iPhone Owners in US Spent $40 Each on Apps in 2016 More

iPhone Owners in US Spent $40 Each on Apps in 2016

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  • My grand total of app expenditures for all of 2016 was ZERO.
    I haven't even spent a dime on Pokemon Go and I play it daily.

    • Mine too. when I got my iphone, I spent a decent amount lining up the apps I wanted. Since then, though, I've spent nothing.
       
      I don't do IAP.

    • Re:Not me (Score:5, Insightful)

      by rsmith-mac ( 639075 ) on Wednesday February 22, 2017 @02:54PM (#53913147)

      My grand total of app expenditures for all of 2016 was ZERO.
      I haven't even spent a dime on Pokemon Go and I play it daily.

      Is that really something to be proud of, though? You spent $500+ on an iPhone, and then rejoice in not paying anything for the software you use daily?

      This current environment of ad-supported nonsense is why smartphone games are such poor games (and such good Skinner boxes). And I fear studies like this just further adds to the stereotype that smartphone owners are cheap bastards.

      • Oh man are you going to be pissed when you find out how much I spend on my desktop OS and Office suite....

      • My grand total of app expenditures for all of 2016 was ZERO. I haven't even spent a dime on Pokemon Go and I play it daily.

        Is that really something to be proud of, though? You spent $500+ on an iPhone, and then rejoice in not paying anything for the software you use daily?

        Most of the software you use daily is included in that initial outlay for the phone (phone app, camera app, etc). As far as software like Pokemon Go what do you want him/her to do? It's free.

      • Personally, I wish there was an option in the Play Store to only display apps that cost money. I have no problem paying a few dollars for an app or a game that I will like. I do have a problem with 'free' apps/games that are obviously anything but free once you try to actually use or play them.

        I like also using the Amazon Android app store. They have some of the same games, but they also have rotating set of 'free' games that are usually priced non-zero, including some 'microtransaction games' where the

      • Re: (Score:2)

        by hodet ( 620484 )

        The only idevice we have in our home is an ipad. If I need an app I specifically look for one that costs something because the free stuff is mostly in-app purchase nonsense. I don't think it is a big deal to throw a developer 6 or 7 bucks if they provide me with something that is not constantly nagging me or trying to trick me into buying something.

        My son downloaded Monster Legends. Looks like a fun game right? And its free. Total in-app purchase low value piece of shit. Always wanting you to buy gems

    • My grand total of app expenditures for all of 2016 was ZERO.

      If I find a free app useful, or if it's something I find myself playing again and again, I will usually make an in-app purchase of some sort - just to support the developer.

    • $40 sounds about right to me.

      I will often buy apps even just to try them out. It's worth the couple bucks to not have ads and the ad-related malware exposure (not that I know of anyone using the mobile ad network to spread malware, but it seem to me that it probably hasn't been overlooked by the criminals).

      That said, though, I don't think I spent more than $40 (if that) last year.

    • Think on your actions and what they lead to (Score:4, Informative)

      by SuperKendall ( 25149 ) on Wednesday February 22, 2017 @03:57PM (#53913637)

      I haven't even spent a dime on Pokemon Go and I play it daily.

      So since you are so fond of it, would you like to see MORE of it, or LESS?

      Would you like to see it improved at all?

      By not spending any money, you are in effect saying "This game I really love, I sure hope they never improve it or keep up with system updates! Maybe someday it will be so behind I'll have to stop playing!".

      I also really liked PokemonGo. I was fine not paying for anything myself, I never felt the need to - but I still spent $5 or so on Pokecoins just to support the company, to say "Thanks for the enjoyment I've had playing this game".

      My Philosophy is simple, if I see something I really like I try to support the creators by any means possible.

      • I've spent about $40 so far on Pokemon Go, and I think it's the full amount I plan on spending. I expended my item and pokemon storage slots. Fourty bucks is about the same amount of money I've spent on any other Pokemon game, so it just seemed about right.

  • A time to be glad to be below average.

    I've spent $0 on apps for smartphones 3 years running now....

  • Not to turn in Captain Killjoy Statistics Man, but this is a prime use-case for comparing mean vs median vs mode. What if the vast majority of folks spend $0, but there's a few Clash and Clans and Pokemon Go whales out there skewing everything? Recently, we saw how few people actually paid for Super Mario Run (something like 10%?) Seeing the median value as compared to the mean would go a long way to describing the actual spending habits of iPhone users, rather than this semi-meaningless statistic. (E

    • There are Lies, damn lies and statistics you know.. I'm sure Apple isn't going to share the actual statistics here...

  • Witness the Wastelandroid (Score:5, Insightful)

    by SuperKendall ( 25149 ) on Wednesday February 22, 2017 @02:49PM (#53913117)

    I thought $40 on average seemed about right, given the explosion of in-app purchases for not just games, but apps like HBO... (don't forget the AppleTV is an IOS device). I myself probably spent more like $200 last year on iOS app store purchase (which include subscription to HBO for a few months).

    However look at the other responses here, proclaiming how proud they are to have spent $0! Is there any wonder why Android continues to be a second tier when it comes to app development? It makes you question if there is any use at all in ever developing an app for Android if what you get out of it is to be anything but breadth of exposure.

    I myself am proud to spend money on apps and help support a sustainable app ecosystem where I will see real improvements to apps because people are willing to spend money...

    • I have the NHL app on my Apple TV. $140 for the year, but I'm not sure Apple gets a piece of that.

      • If it's a subscription that you bought through the AppleTV/iOS, then yes. If you paid for the subscription through the web or something, then no.

        • I honestly don't remember. I think web. Though I did see an ad for it on aTV. Maybe I did it right then.

      • You probably bought it through the web so they do not get any of that. But users can purchase a lot of sports app subscriptions through apps, which Apple does get part of.

        I bought my HBO subscription through the app, since that way HBO never gets any payment info form me, and I have to deal with zero humans or terrible billing interfaces to cancel - I just stop the app subscription.

    • Re:Witness the Wastelandroid (Score:4, Insightful)

      by gatfirls ( 1315141 ) on Wednesday February 22, 2017 @03:14PM (#53913327)

      That's just silly. You aren't taking into consideration that Android OS covers the most cheap bare bones phones/tables/etc to the comparable galaxy/etc devices.

      To make an analogy its like saying Tesla drivers spend more on Starbucks than GM drivers do. Tesla only sells relatively expensive cars while GM runs the gamut and the lower end sells much more than the higher end. A Tesla entry point is ~70K a GM is ~12k, and both top out in the 100K+ range.

      I can't seem to find any numbers of like-priced devices but I will bet the numbers are probably in the +/-5% range either way.

      • You aren't taking into consideration that Android OS covers the most cheap bare bones phones/tables/etc to the comparable galaxy/etc devices.

        That is irrelevant - they are not the Android devices Slashdot readers would be using. What I am saying is a sampling of high-end Android users here shows DELIGHT in not paying for apps. And that plainly shows in continued low purchase rates for apps on Android compared to iOS.

        • Of the few posts I saw that showed DELIGHT at not paying for apps none of them identified what phone they are using. Do you not realize that *most* of the revenue created from apps is in game purchases from games that are free to play on both platforms? Candy crush pulled in 1.3 billion alone, and it's a free game.

          So yes, it is silly to infer that Android users don't pay for things because you saw some posts on the internet about people enjoying not paying for apps. Also that android app development is s

          • Of the few posts I saw that showed DELIGHT at not paying for apps none of them identified what phone they are using.

            Come on. Do you even READ Slashdot? We already know what phone they use.

            • When I am home, I use a Western Electric 2500 set. There are several other business phones as extensions around the house, both of which I got in box lots at an Auction. They have speakerphone and hold functions that I like, but primarily they are just durable landline phones that work and seem to last forever.

              It's sad that "what phone they use" has turned into a creepy cultish thing in some circles, like asking somebody what religion they belong to.

        • That is irrelevant - they are not the Android devices Slashdot readers would be using.

          You're on a forum where people pride themselves on still using brick phones, or being ahead of the game with cheap Chinese Huaweis, and where the biggest complaint about the Pixel is that it is no longer a budget phone.

          If you don't have any perspective on the people you're talking to, I find your view of the wider market even more questionable. Especially when you claim that Android is somehow second tier to the iPhone in App development. You can start by giving me a list of things you can do on your iPhone

          • Re: (Score:2)

            by tepples ( 727027 )

            You can start by giving me a list of things you can do on your iPhone that I can't do on an Android.

            Buy music from a recording artist who makes his work available through iTunes but not Google Play Music or Amazon Music.

            Play Tiny Wings.

            Communicate with other people who use FaceTime on a Mac, iPhone, or iPad.

            • People who use FaceTime to protect themselves from the filthy unwashed have no idea how thankful we are that they self-filter themselves out of our communication streams.

              • Re: (Score:2)

                by tepples ( 727027 )

                In your opinion, what should replace FaceTime for desktop-to-desktop, mobile-to-mobile, and desktop-to-mobile voice and video over IP calling?

        • What I am saying is a sampling of high-end Android users here shows DELIGHT in not paying for apps.

          You're trying to draw conclusions from slashdot posts? Really? It's a proven fact that 37% of them lie at least half the time and 10% lie all the time.

    • Re: (Score:2)

      by imidan ( 559239 )
      I don't spend a lot of money on apps in a given year. Most often, $0. But I don't think it's because I'm cheap; I just don't spend a lot of time interacting with my phone. Most of my data usage is from tethering my laptop while traveling. I've had the (Android) phone for around 3-4 years. In that time, I have installed roughly seven apps that didn't come with the phone. They were all free, but four of them were created by megacorps and the other three are rarely used, tiny freebies that never advertis

    • However look at the other responses here, proclaiming how proud they are to have spent $0! Is there any wonder why Android continues to be a second tier when it comes to app development? It makes you question if there is any use at all in ever developing an app for Android if what you get out of it is to be anything but breadth of exposure.

      Most of the people claiming to spend $0 on apps in this thread say they are iPhone owners. You are the first one to bring Android to this discussion.

      I myself am proud to spend money on apps and help support a sustainable app ecosystem where I will see real improvements to apps because people are willing to spend money...

      How much did you pay for your ZIP utility, text editor, web browser or file manager on your PC? The best ones are free (often open source).
      I don't care about phone games. I don't pay for these kind of software on my PC. Why do you expect me to pay for apps on my phone? The best apps are free. Paying for apps won't improve the free ones. Money doesn't go to the

    • Re: (Score:1)

      by Threni ( 635302 )

      What does "I myself" add which just saying "I" lacks?

      I spend a little money on apps but I think the point with Android is you don't have to. I don't know what Apple owners are spending money on but I think it's great you can get a reasonably cheap Android device and can go months/years without having to buy an app; it means the OS and free apps/games are doing the job. Why spend money on stuff you don't need when you can save it for something you can justify? And in case you were wondering, Android is still

    • I myself am proud to spend money on apps and help support a sustainable app ecosystem where I will see real improvements to apps because people are willing to spend money...

      Clearly I am in a minority, but since you are making declarations, I will never spend money on a platform as locked down as the iPhone. I can and have spent money to support open source. I spent several years in jealousy because the iPhone was such a nice platform, and I really wanted one, but I stayed true to my principles.

      Now iPhone isn't that much better than Android (and arguably is worse), so it's easier than it ever was.

  • Since "analysts" keep claiming that phone are replacing consoles and desktops for gaming, let's look at this from a business perspective. That is equivalent to a single video game purchase on another platform. That is virtually nothing at all in comparison to other platforms right now.

    • Re: (Score:2)

      by j-beda ( 85386 )

      Since "analysts" keep claiming that phone are replacing consoles and desktops for gaming, let's look at this from a business perspective. That is equivalent to a single video game purchase on another platform. That is virtually nothing at all in comparison to other platforms right now.

      Going from average sales of five video game purchases from one group to one video game purchases from a larger group can result in increased revenue if the larger group is large enough. In this case someone might say the phone is "replacing" the console/desktop when realy the developer could be the one switching platforms and possibly game types. Getting a small fraction of a larger pool might be more attractive.

  • Seems about right to me? (Score:3)

    by King_TJ ( 85913 ) on Wednesday February 22, 2017 @03:08PM (#53913269) Journal

    I've definitely gone entire years spending nothing on apps for my iPhone, but other times I've spent considerably more -- especially when said apps work on both my iPhone and my iPad Pro.

    When I got the iPad Pro and Apple Pencil for it, it created a new need for apps that take advantage of the pencil's functionality. That was a good reason to buy 1 or 2 of the apps priced at around $10 each that are optimized for it. (For example, it opens up some new capabilities if you can easily fill out PDF forms with the pencil, including initialing or signing pages.)

    I know a lot of of kids and teens use their iPhone as an alternative to the dedicated portable gaming consoles too, so obviously, they're going to sink some money into games for it. $40 a year is probably a lot less than they used to spend for games for a PSP, GameBoy or what-not.

  • GDC conference sessions from 2016 recorded on youtube document rates of mobile game payments. They talk about less than 4% of game users spending over a thousand dollars each a year. While not all mobile games are on iphones, I could see this kind of subset really distorting the "per user" spend, and obscuring a secondary subset like how much is spent on non-game iphone apps.

    • The jargon term for big spenders on mobile games is 'Whale.' Games publishers often tailor their content expressly to keep money rolling in from their 'Whale' customers, who represent a tiny percentage of the game's playing population.

      It's a neat and tiny business plan, and the mechanism for tracking whales is built right into the games. You just look at the leaderboard and observe what gidgets and add-ons and items your games 'whale' population is buying. Add more said items on a regular basis.

      It's how

  • Misleading - whales and the big tail (Score:3)

    by ljw1004 ( 764174 ) on Wednesday February 22, 2017 @03:23PM (#53913387)

    The headline (and original report) seem open to misinterpretation.

    50% of mobile game revenue comes from just 0.15% of users according to this 2014 report. http://www.recode.net/2014/2/2... [recode.net]

    70% of mobile game revenue comes from just 10% of users according to this 2016 report. http://www.adweek.com/digital/... [adweek.com]

    So while I believe the article that the average amount spent per iPhone is $40/year (mean), it's probably equally true that the "average iPhone user" (median) spends less than $5/year. (That number is just a guess because I don't have the data.) Queue all the people who will reply to this story saying "I spent ZERO over the past year".

  • There's very few people spending a whole lotta money on apps: Only 5% of users actually "pay" for apps.
    Granted these statistics are a couple years old, but I've not spent a penny on apps - ever. and reading though these posts it sounds like everyone is a bit confused on who actually breaks out the pocket book for apps.
    https://www.appboy.com/blog/in... [appboy.com]

  • Perhaps I'm just not representative of a typical user. I don't use my phone for gaming and all the apps that I use on a regular basis are free. That includes things like google maps and Wayz for navigation, the stock mail client, the stock browser, the various apps to manage my frequent flier and other travel tools, etc.

    I think there are a lot of folks that fit that description so I'm frankly rather surprised that this number is even that large.

  • Each implies that everyone spent something, at least $40. Average would be more accurate in that the total spent divided by the number of users is $40.

    I think Steam users spend 5x that on average.

  • Does this take account of ad ridden free apps. Certainly those seem generate money too. I myself have spemy roughly 40 bucks on Android apps or the past 5 years. I tend not to pack my devices with apps I'll only use once. I've even bought Palm and Window Mobile apps.

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