The relatively phenomenon of fremium apps, where the app is free but makes money from in-app purchases, seems to be paying off, according to a study by NPD. 40% of users who download fremium apps end up making in-app purchases, which is a considerable margin. The survey was carried out on 6146 people in the US over the age of two.
It’s worth remembering that this isn’t iPhone exclusive and does include Android, but it still means that many iOS users are tempted by making in app purchases. The study also revealed that females are much more likely to have played a fermium game than males, even though they are among the least likely to pay for an upgrade.
For developers, it’s definitely a great pricing strategy, especially if you have a really addictive game that leaves the user wanting more, like Angry Birds, with developer Rovio having recently implemented such a strategy in their latest space based version of the game.