Data Reveals In-App Purchases Are Now More Popular The They Ever Were

Ali Salman

A new report has emerged from Sensor Tower detailing the popularity of in-app purchases over the years. The report shows how the numbers have climbed over the past few years taking into account both parties, smartphone users, and developers. If you're in the number crunching scenario, you should know that iPhone users spent 23 percent more on in-app purchases in 2017 compared to the year before. So let's dive in to see some more details on the matter.

Popularity  Of In-App Purchases Grew Year-Over Year With Games Leading The Way

Data from Sensor Tower reveals that the “average amount spent per active iPhone” increased and hit a new milestone of $58 last year. In 2016, the average amount spent per active user was $47. Moreover, there is a ratio of that $58 percent that narrows down to $38 spent on games followed by entertainment, music, social networking and the remaining contributed to lifestyle apps.

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Do take note that the amount spent directly falls under Apple's first-party in-app purchases system. For instance, subscription in apps like Netflix and more. In addition to this, the number does not add the transactions made through apps like Uber and Amazon.

If we're splitting hairs, there was a 10 percent increase in the number of download per smartphone. Users installed at least four more apps in 2017 than they did in the previous year in the United States. This bumps up the total number to 45 apps. Games increased by 7 percent while photo and video apps fell by 10 percent on an annual base.

Games again made up the largest share of those apps at just over 13 installed per device, up from 12.3 in 2016, a 7 percent increase year-over-year. Among the remaining most-downloaded categories on iPhone last year in the U.S., Entertainment grew 7 percent from 2.9 per device to 3.1 on average, and Utilities grew 4 percent from 2.3 to 2.4 per phone.

Social Networking was unchanged at 2.9 installs per device, while Photo & Video app installs per iPhone decreased 10 percent year-over-year from 4 installs to 3.6 per phone.

It can be seen that the pricing model has proved worthwhile for the developers. Do you think the growing success of in-app purchases is justified? There will be more to the story, so be sure to stay tuned in for more details.

This is all for now, folks. What are your thoughts on the increasing rate of in-app purchases' popularity? Let us know in the comments.

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