Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

Summary: Phone facts: Verizon has only been selling the iPhone 4 for a few months, yet statistics show Big Red is already accounting for a third of all iPhones sold in the U. S. Free iOS games make more revenue than paid versions.

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The smartphone space moves at such a rapid pace it is fun to try and keep up with everything. New phones get rolled out almost daily, and even old standards like the iPhone generate news. Verizon has only been selling the iPhone 4 for a few months, yet statistics show Big Red is already accounting for a third of all iPhones sold in the U. S. It's easy to see why Apple wanted to get into bed with Verizon.

A set of statistics has been released by Flurry that demonstrates that mobile games generate more revenue for the developers when given away free than paid versions of top selling games on the iOS platform. A common argument levied against the Android app system is that the majority of apps are free and not paid versions. The numbers from Flurry paint a vivid picture in the iOS app ecosystem that indicate when it comes to games the freemium model is the way to go, which takes away from the argument against the Android model.

Freemium games are those given away but that generate revenue for the developer through either ads in the games or by selling upgrades directly in them. The June statistics show that a full 65 percent of iOS game revenue is generated by free games, a big advantage over revenue from paid games. Developers need to pay attention and decide if freemium is the way to go with games on the iOS platform. While selling a game for a dollar can generate revenue if the game is popular, the Flurry statistics show that free games with other revenue outlets generate more than those relying on game sales.

Topics: Hardware, iPhone, Mobility, Smartphones, Telcos, Verizon

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  • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

    Another fact, you will not make money from iOS games. The market is too saturated and with over 100,000 apps in the app store the chances of your game getting noticed are very slim.
    LoverockDavidson
    • So not a single person has made money off of games on iOS?

      @LoverockDavidson

      Is that what you are saying? Is that a "fact" or a fanciful opinion?

      Oddly, the Flurry data contradicts everything developers were indicating at WWDC just a month ago where the revenue ration of "premium" VS "freemium" was closer to 3:1. But then again, Flurry is an ad company trying to sell their wares.
      Bruizer
      • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more m

        @Bruizer

        Flurry Stats read, "The June statistics show that a full 65 percent of iOS game revenue is generated by free games, a big advantage over revenue from paid games." The 3:1 premium over freemium is for all apps. Game freemiums account for 65% of total game apps revenue (for developers). That should clear up your question(s).
        daniel.luna
    • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

      @LoverockDavidson
      Well go to Android or Blackberry or WP7... you have choices..
      Hasam1991
    • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more m

      @LoverockDavidson
      dont worry too much, if the game you make is good, then people will notice. if however its crappy it will get lost in the crowd
      rocketboy5114
    • Not correct: Apple's App Store works via 'viral'/social marketing scheme of

      @LoverockDavidson: ... how people get to know about games. If your game is not mediocre, then somebody surely will give it <b>five stars</b>, and then some obscure site will post a small review about your game, and them major review site will post review, et cetera.
      DDERSSS
    • NOpe.

      @LoverockDavidson I don't think that's the case. It just means it's harder to get noticed... Angry birds was a relatively new comer, yet it's hugely successful. It just means your quality has to be great and the value added has to be there.
      snoop0x7b
    • I disagree

      @LoverockDavidson If that was the case then no one would develop iOS apps and clearly this is not the case.
      athynz
  • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

    It's actually understandable. You pay a one time fee for a premium game, while a freemium one will generate cash for as long as the person plays the game...not to mention people are way more likely to grab a "free" game, rather than pay an upfront cost.
    Aerowind
  • At AT&T's expense

    Would anything have changed number wise had they just stayed with AT&T exclusively?
    John Zern
    • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

      @John Zern Not necessarily. While certainly a lot could be coming from AT&T, it's just as likely that Verizon Android customers are switching to the iPhone. The graph is a percentage of the total of iPhones and I'm betting more Verizon customers are just upgrading to an iPhone rather than AT&T goers breaking their contracts.
      Aerowind
      • The graph leaves out total numbers sold

        @Aerowind
        as in 'has the total amount of iPhones sold gone up', or are some people moving from AT&T to Verzion, with sales figures remaining steady, hence the percentage drop with AT&T that matches the rise on the Verizon side.
        John Zern
    • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

      @John Zern
      A lot of people I know were waiting for Verizon to get the iPhone so they could trade in for their blackberries... some went with Android and were disappointed after finding out apps don't work, you can't update your software or remove apps you don't want...
      Hasam1991
    • Perhaps

      @John Zern I wonder how the number play out as far as VZW picking up disgruntled former AT&T customers and VZW customers going from a feature phone to an iPhone or from another smartphone platform to iOS... it'll be interesting to see. James is there any way you could do a follow up on this? Does this data exist and is it accessible?

      I have a BB with VZW for work and now that our work order system is no longer exclusive to the BB platform I'm in the market for a new non-BB smartphone. For me it would be redundant to get an iPhone with VZW because I have one with AT&T so Android looks like the way to go for me personally (as I'm not all that impressed by WP7) but if I did not have an iPhone on AT&T that would be my first choice going from BB.
      athynz
  • Post hoc fallacy.

    It does not follow that a free iOS game making more money than a paid iOS game means a free android game will make more money as well. Because all things are not equal. You need to look at who buys each type of phone.
    fr_gough
  • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

    It's weird but here in Chicago almost every Verizon store I have walked into and talked to the sales or tech guys says they don't sell many iphones and usually try to sway customers not to buy the iphone but into the droid line as they feel the iphone doesn't offer much and the ones they do sell people seem unhappy with and they have alot of quick exchanges from buyers to android droid series phones. The Verizon kisks in the Costcos wont even carry the iphone or ipad as they refer to them as junk lol
    Fletchguy
    • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

      @Fletchguy <br>Of course you would say that Fletch. besides Peter Perry and Microland, your're one of the biggest Ihate members out there. You never miss a chance to bash on apple or people that choose to use an apple device.
      T-Wrench
      • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

        @T-Wrench And just like most of his other posts I suspect there was very little if any truth in there at all. Of course if he has nothing better to do in life that go from Verizon store to Verizon store check on iPhone sales then we should actually feel sorry for him as he obviously has some issues that need immediate professional attention.
        non-biased
  • RE: Phone facts: Verizon sells a lot of iPhones; Free iOS games make more money

    This definitely makes sense that free games generate more money, although I didn't realize it was the case on iPhone. On WP7 there seems to be as much as a 10:1 ratio in terms of downloads of free versus paid apps. Although we basically only do free apps on WP7, it is very clear that besides the XBox Live titles, free apps are out earning paid apps by a considerable margin.

    Free is the way to go! You don't have to sell anyone anything, just ask them to give you a few minutes of their time so you can entertain them. :-)
    Tiggster79
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