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WWDC 08 - Analyst: Most iPhone Apps Will be Free

Thursday, June 12th, 2008 at 9:20 AM - by

Apple may be pressuring developers to charge for the apps they offer through the App Store, but it looks like the majority of the third-party iPhone and iPod touch offerings will be free. Piper Jaffray analyst Gene Munster spoke with several attendees at Apple's World Wide Developer Conference and found that about 70 percent of the handheld apps they are developing will be available for free.

""We found the average cost of iPhone apps on the App Store to be US$2.29, with 71 percent being free," Mr. Munster said.

Apple will take a 30 percent cut off of every app sold through its App Store, and will not charge developers hosting or download bandwidth fees. The company will not bill developers for hosting free applications, either.

Mr. Munster interviewed 20 developers out of the 5,200 present at WWDC, so his statistics represent only a small subset of the overall iPhone and iPod touch coder market. They do show, however, that developers appear to be interested in offering low cost and free programs through the App Store.

[Thanks to AppleInsider for the heads up.]

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