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US iPhone users spent, on average, $79 on apps last year, up 36% from 2017

172 points| kjhughes | 7 years ago |techcrunch.com | reply

128 comments

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[+] jammygit|7 years ago|reply
It seems weird to say users are spending the money on apps if this includes Amazon or Uber. The users are not spending the money on the app, they're spending it on the product and/or service with the the app in the middle facilitating the arrangement. Its different than purchasing software that does something by itself for you (like a spreadsheet). Eg, one doesn't say that customers spend $X per year on retail, they are said to spend it via retail.

Not that the app isn't an important part of it, but a helpful and knowledgeable employee in a retail environment doesn't get the same headlines, even though s/he isn't a buggy, heavily gamed algorithm recommending baby gear to people who just had a miscarriage.

'Users are spending 36% more on eCommerce than 2017' doesn't have as nice a ring to it.

...also, what is the mean number? How much of that $79 is from there being no meaningful laws against Whaling?

[+] webmobdev|7 years ago|reply
In India, Apple continues to screw itself with its short sightedness by insisting on credit / debit cards for all Apple Payments and refusing to integrate itself with India's many innovative digital payment systems.

Even though I have wanted to pay for a few games and 1 or 2 really good apps, I can't because Apple doesn't accept my indian cards nor other alternative indian payment systems.

Nor can we buy iTunes / App store credit online. Nor are we permitted to use iTunes / App Store gift certificates from US or elsewhere.

Personally, I wonder if this is because:

1. The central bank's (RBI) rule that financial data of indians should be stored in india.

2. Indian payment systems make it difficult to bill someone automatically (without the involvement of the payee).

3. Indian payment systems prevent "leakage" of your "credit worthiness" / credit rating, unlike credit cards.

[+] zaarn|7 years ago|reply
It's not just Apple and India. As an European it is incredibly annoying to spend money at US "startups" (loosely using this terms, this included businesses that had been in operation for 10+ years); I cannot use Giropay, Sofort or SEPA Debit, I have to use a Credit Card. And I can't even use a safe prepaid credit card, I have to use a "real" credit card or else my account gets banned (mailgun did that to me, there was no warning prior and I had to go through support to find out and get unbanned).

It really makes one notice how many startups never ever spend a singular thought on overseas markets, or if they did, only about the scary regulations, not the payment systems.

[+] noneeeed|7 years ago|reply
Wish I could find it, but I read an article recently about all the work Amazon is putting into India, working with small traders to handle ordering, payment and delivery in person etc when you can't rely on things like the postal service or easy access to online payment. It makes for an interesting contrast to what you describe as Apple's lack of local awareness.
[+] ramshanker|7 years ago|reply
Uber integrated with local payment processor Paytm and they are doing excellent. Apple may be "in their own world" to accept paytm terms, feels more of arrogance issues to me.
[+] avip|7 years ago|reply
According to media coverage, Apple put the UPI integration on hold due to "regulatory issues". That's mainly RBI data localization requirements ([1] on your list).
[+] YetAnotherNick|7 years ago|reply
> I can't because Apple doesn't accept my indian cards nor other alternative indian payment systems.

Read this: https://www.isaumya.com/paypal-google-wallet-indian-debit-ca...

I use my SBI international debit card for apple music, and used HDFC international card before. Domestic card doesn't work and you need special activation. It wasn't possible to use SBI card two year before. Also, almost all credit cards are supported.

[+] masonic|7 years ago|reply
You can't buy iTunes gift cards with any of those payment systems?
[+] mscasts|7 years ago|reply
So there is no way for you to buy anything of the appstore?
[+] SllX|7 years ago|reply
Last I checked, nothing the old iTunes Store infrastructure touches including the App Store takes Apple Pay either. For that matter, neither does the Online Apple Store app, at least as of May last year when I last tried it.

I wouldn’t hold my breath waiting for Apple to stop repeatedly shooting themselves in the foot when it comes to anything at all to do with their e-commerce platform.

[+] llukas|7 years ago|reply
Title is bit misleading (non-native speaker here). Article is about in-app spending.
[+] sotojuan|7 years ago|reply
In-App makes sense. I’ve recently purchased a good amount of not-free apps but the only in-app stuff I’ve purchased has been “pro” versions of free apps I’ve downloaded. I’m guessing the former don’t count.
[+] criddell|7 years ago|reply
Would things like Evernote subscriptions count towards that?
[+] roenxi|7 years ago|reply
This information isn't very useful without knowing how the number of iPhone users are changing.

This could be interpreted as a happily growing ecosystem, or it could be interpreted as budget oriented users being squeezed off the platform leaving only people who are locked-in to subscription apps. Presumably it is the former, but we can't tell that from the article because there are no absolute numbers.

[+] graeme|7 years ago|reply
Apple said at their last call that they have 1.4 billion active devices, up 100 million from a year ago.

Not quite people, but the userbase appears to be growing.

[+] scarface74|7 years ago|reply
Why wouldn’t they if you’re buying the subscription through the App Store?
[+] post_break|7 years ago|reply
On android I spent a fortune because I knew I could refund it if the app was bad or didnt do what I wanted. On iPhone I'm scrooge. So far for 2019 I've spent $1.
[+] jplayer01|7 years ago|reply
You can refund iOS apps if that's your problem. I've never been denied a request. I don't feel I spend less on IOS than I did on Android (probably more because apps seem to be a bit more expensive).
[+] threatofrain|7 years ago|reply
Many iPhone apps aren't well described enough for the user to know what they're expecting before they buy. And even legitimate refunds are obnoxious.

Plus app store browsing and discovery sucks.

[+] maxxxxx|7 years ago|reply
I would buy much more if I could try for a few days. I don’t understand why they can’t do this. Or better, they can, but don’t want to. This is outright user hostile.
[+] stevenwoo|7 years ago|reply
I spent money on android because the Google rewards program gives it in exchange for me filling out surveys ( I assume to verify their analytics) and I spent zero dollars on iOS.
[+] rhinoceraptor|7 years ago|reply
I'm not sure what the mental block is for people. A $5 app is considered premium, and that's what plenty of people spend on coffee on their way to work every day.
[+] diafygi|7 years ago|reply
I wonder what the median amount is. Is the distribution of revenue heavily lopsided to the whales?
[+] koolba|7 years ago|reply
I recall reading that some game companies have teams dedicated to catering to individual whales.
[+] fipple|7 years ago|reply
The median is certainly lower than $79, and may even be $0.
[+] nottorp|7 years ago|reply
The details of the report say that games spending is more than 50% of in-app spending... so yes, it's game IAPs thus whales.
[+] __alias|7 years ago|reply
While I spent a fair bit using app services (Uber, lime primarily), I've just thought about it and realised I'm a heavy mobile phone user but have spent < $10 in total on apps in the last 7 years of being an Android phone user. As a fellow app developer that makes me feel pretty guilty but there's always a free version of whatever I need and I don't play any games.

Is there any must have quality paid apps out there anybody suggests?

[+] londons_explore|7 years ago|reply
On Android, the average spend per user is much much lower, partly because the audience is different, but also because free Android apps tend to be much better than free iOS apps.

There are lots of things on iOS you can't do without some paid app. Even silly things like "make my voice sound like Micky mouse on phone calls" is a paid app on iOS.

[+] crooked-v|7 years ago|reply
I wonder how much of this is the recent push by many devs for subscription apps, and, to go with that, what the breakdown is of the actual subscription apps vs people preemptively buying other apps to avoid future subscriptions.
[+] KiDD|7 years ago|reply
How much of this was due to Fortnite I wonder?
[+] pentae|7 years ago|reply
$0.00. Fortnite bypasses Apple IAP.
[+] pishpash|7 years ago|reply
Boxed software used to cost that much or more each. $79/year is meager.
[+] benj111|7 years ago|reply
Boxed software, as in productivity software that you might well use for your job? Well yes.

Even looking at something like games though, deflation is reasonable. That game I bought in the 90s

A. Probably still works now, isn't reliant on external servers. So cost/year is still lower.

B. Was resalable if I didn't like it.

C. Faced a lot less competition.

[+] m0zg|7 years ago|reply
That seems kind of crazy actually. I maybe spent $10 over the past year on apps, if that. I don't need yet another notetaking app, and I refuse to be bled dry by subscriptions.
[+] innagadadavida|7 years ago|reply
How much of this is due to people not upgrading to new iPhones as the OS got optimized and they got free batteries - people spend more money when they have more left.
[+] randomacct3847|7 years ago|reply
I would love to hear success stories of indie app makers. There must still be a sizeable long tail of indie made apps that people are buying...
[+] ppeetteerr|7 years ago|reply
Why don't we wait to see the actual report? This article seems like the cart leading the horse.
[+] mlthoughts2018|7 years ago|reply
As someone who has never once paid for an app or paid for in-app purchases, nor do I allow apps that show ads, I find this staggering.

It’s not a judgment or anything. Just the idea of this is so bewildering and alien to me.

[+] martin-adams|7 years ago|reply
I wonder if they do strictly mean iPhone or if that also includes iPad sales. I know I've spent more than $79 on iPad software which some I can also use on iPhone.
[+] habosa|7 years ago|reply
Does this count Spotify and Netflix and other subscriptions offered via IAP?
[+] dangoor|7 years ago|reply
Yes, I think this counts IAP subscriptions. Note that Netflix just stopped accepting payment that way, though, so for 2019 Apple's results will no longer include Netflix subscriptions.
[+] farazzz|7 years ago|reply
What if this is partly due to non-spenders downloading less apps?
[+] Kiro|7 years ago|reply
I've spent probably tens of thousands of dollars on mobile games.

(I posted this as a counter-example to all the "This is baffling. I wouldn't spend a single dollar on apps." comments here.)

[+] sametmax|7 years ago|reply
I have two conflicting stereotypes: on one hand I assumed people spending that much on mobile games would be uneducated, on the other hand I also assume people on HN are more educated than average.

Thanks for making me coming out of it.

So, now, you made me curious. How did that happen ?