The iPhone 5s is outselling the 5c by a Factor of 3.4x

So much for demand for a “cheap” iPhone. In the first weekend it was available, the iPhone 5s outsold the 5c by a factor of 3.7 worldwide, says mobile and app analytics company Localytics. Apple hasn’t released the breakdown of sales for the iPhone 5s and 5c, and has only announced that 9 million iPhones were sold in the first weekend. Localytics, however, gets data from bits of code inserted into apps on users’ phones, which report back data like the model of phone being used. They make for an indirect but reasonably good measure of how many of each kind of phone there are.

One might expect that ratio to be skewed especially heavily towards the 5s in the US, where consumers are richer and the upfront price difference between the two is only $100 when buying them on a two-year contract from a mobile carrier. But in fact the iPhone 5c performed relatively worse against the iPhone 5s in the US, with 3.4 iPhone 5s selling for every 5c. (We’ve asked Localytics to tell us about the ratio of the two in emerging markets, but haven’t heard back yet.)
5s vs 5c us

Localytics didn’t release absolute numbers for how many iPhone 5s and 5c models its service saw; instead it looks at the proportion of all iPhones in its data that were the 5s or 5c. As expected, sales in the US, as indicated by the proportion of all existing iPhones that the 5s and 5c represent, were much higher than anywhere else in the world.

active iphones_global

And the network with the biggest sales of those iPhones was AT&T.

carrier

Methodology

Localytics is the leading analytics and marketing platform for mobile and web apps across more than 1 billion devices, 20,000 apps and 5,000 customers. Localytics processes 50 billion data points monthly. For this study, we examined over 20 million unique iPhones and investigated the breakdowns by United States carriers and by global activations. The timeframe for this study is all active iPhones from when the iPhone 5s and 5c were first released on September 20th, 2013 until 8 pm EST, Sunday September 22nd, 2013.

[Source: Localytics]

App Cost Evolution: iPhone users pay average of 19 cents per app, Android users pay just 6 cents

Many consumer surveys point to an obvious conclusion: most people hate seeing ads on smartphones and tablets. But the truth is, contrary to the desire for an ad-free experience, when faced with the choice between free apps with ads, or paying even $.99 for apps without ads, consumers overwhelmingly choose the free apps and tolerate the ads.

In this post we explore that revealed preference for free content over content free of ads by examining four years worth of pricing information for the nearly 350,000 apps that use Flurry Analytics.

Our Apps Tell A Story

Each time we download an app, we reveal a little bit about ourselves. A glance at the apps on your phone can indicate whether you are a fan of sports, gaming, or public radio, and whether you love to hike or cook or travel. But our choices of apps also reveal our individual tolerance for advertising, and how we feel about the trade-off between paying for content directly, or paying indirectly by (implicitly) agreeing to view ads.

In many cases, apps are available in two forms: free (with ads) and paid (no ads). If you truly can’t stand to see ads in apps, you can usually pay $.99 or $1.99 to eliminate the ads and possibly get some additional functionality too. Even when a specific app does not come in paid and free versions, there are often other apps to choose from, free and paid, that perform very similar tasks like calling a taxi or looking up recipes.

So what are consumers choosing? Let’s start by considering iOS apps since they have been available for longer than Android apps. Note that all of our measurements in this post are weighted by user numbers so the apps with more users contribute more to the total trend.

People Want Content To Be Free

The chart below shows how the proportion of free versus paid apps has changed over the years in the App Store. Between 2010 and 2012 the percentage of apps using Flurry Analytics that were free varied between 80% and 84%, but by 2013, 90% of apps in use were free.

Chart 1 resized 600

Some might argue that this supports the idea that “content wants to be free”. We don’t see it quite that way. Instead, we simply see this as the outcome of consumer choice: people want free content more than they want to avoid ads or to have the absolute highest quality content possible. This is a collective choice that could have played out differently and could still in particular contexts (e.g., enterprise apps or highly specialized apps such as those tracking medical or financial information).

Android Users Are Even Less Willing to Pay For Apps

Up until now, we have focused on iOS apps because they have been around longer, but what about Android? Conventional wisdom (backed by a variety of non-Flurry surveys) is that Android users tend to be less affluent and less willing to pay for things than iOS users. Does the app pricing data support that theory? Resoundingly.

As of April 2013, the average price paid for Android apps (including those where the price was free) was significantly less than for iPhone and iPad apps as shown below. This suggests that Android owners want app content to be free even more than iOS device users, implying that Android users are more tolerant of in-app advertising to subsidize the cost of developing apps.

chart 2 resized 600

These results also support another belief derived from surveys and some transaction data: iPad users tend to be bigger spenders than owners of other devices, including iPhone. On average, the price of iPad apps in use in April of this year was more than 2.5 times that of iPhone apps and more than 8 times that of Android apps. This is likely to be at least partly attributable to the fact that on average iPad owners have higher incomes than owners of other devices.

Developers’ Pricing Decisions Were Data-Driven

On the surface, the rise of free apps could be seen as herding behavior: maybe app developers saw how much free competition there was and decided to make their apps free too. It’s certainly possible that may have happened in some instances, but by digging deeper into app pricing patterns over time, we were able to see that many developers took a much more thoughtful approach to pricing.

We looked at historical iOS app data (again because iOS apps have a longer history) to identify apps that have been the subjects of pricing experiments. That typically took the form of A/B testing, where an app was one price for a period of time then the price was raised or lowered for a period of time, then raised or lowered again. This lets developers assess users’ willingness to pay (i.e., price elasticity of demand) based on the number of downloads at different price points.

The chart below shows the percentage of tested and untested apps that were free (again, weighted by user numbers). The vast majority of untested apps in green were free all along, so it’s most interesting to look at the trend among apps that were subject to pricing experiments, in blue. As shown, there was an upward trend in the proportion of price-tested apps that went from paid to free. This implies that many of the developers who ran pricing experiments concluded that charging even $.99 significantly reduced demand for their apps.

PricingExperiments FA2

The People Have Spoken; It’s Time To Change The Conversation.

While consumers may not like in-app advertising, their behavior makes it clear that they are willing to accept it in exchange for free content, just as we have in radio, TV and online for decades. In light of that, it seems that the conversation about whether apps should have ads is largely over. Developers of some specialized apps may be able to monetize through paid downloads, and game apps sometimes generate significant revenue through in-app purchases, but since consumers are unwilling to pay for most apps, and most app developers need to make money somehow, it seems clear that ads in apps are a sure thing for the foreseeable future. Given that, we believe it’s time to shift the conversation away from whether there should be ads in apps at all, and instead determine how to make ads in apps as interesting and relevant as possible for consumers, and as efficient and effective as possible for advertisers and developers.

[Source: Flurry]

Automator for Mobile: “If This Then That” available for iPhone

If This Then That (IFTTT) is now available for iPhone.

If you’re not familiar, IFTTT is a service that lets you connect two different apps or services together based on specific parameters, in a way that makes using both services a lot more useful. Think of it as a string that ties together everything you use on your computer or phone.

Connections between things on IFTTT are called recipes. Exceptionally simple to use, all you have to do is specify the “This” and the “That” of your equation to create your own recipe.

For instance, you might ask IFTTT to save all the photos you upload to Flickr to your Dropbox, or send you an SMS message whenever you’re tagged in a photo on Facebook.

Previously available only on the web, the service officially launched for iOS Thursday, bringing with it a few new iPhone-specific features.

“We’re always trying to make things easier for users,” Devin Foley, IFTTT’s mobile lead toldMashable. “We think the app is a great step forward in simplifying the process of connecting channels together, and making recipes and using them.”

IFTTTapp

The IFTTT iPhone app adds support for the Contacts, Photos and Reminders functionality on your iPhone; this means you can set IFTTT up to interact with those functions in unique and useful ways.

For instance, each time you take a photo with your phone’s forward-facing camera, you could have the image backed up on Google Drive automatically.

With Reminders, you can automatically track those you’ve completed on a spreadsheet. What’s more, when you add a contact to your phone, you can automatically send that person a “Hello!” email containing your own contact information.

The possibilities are endless, but if you’re struggling to come up with ways to use the service, IFTTT has an app-accessible section that includes recipes others have created to help you get started. You can sort shared recipes by what’s featured or trending on IFTTT, as well as recipes that have been the most popular over time.

“100,000 shared recipes have been created on IFTTT so far,” Foley said. It’s a number that will likely get much larger with the introduction of the mobile app.

In addition to helping you create recipes on-the-go, the IFTTT app also shows a timeline view of all of the recipes it has completed for you, as well as a handpicked recipe that the service thinks you’ll find particularly useful.

IFTTT is available now in the App Store.

[Source: Mashable]

5 Years Later: A Look Back at the Rise of the iPhone

June 29th marks the 5 year anniversary of the first iPhone release, an important milestone not only for Apple but for the entire mobile industry. This revolutionary device set the stage for explosive growth in the smartphone market, drastically changing the complexion of the mobile industry and, consequently, the entire digital landscape in just a few short years. In July 2007, barely 9 million Americans owned a smartphone – representing just 4 percent of the entire mobile market. Today nearly 110 million Americans own a smartphone and by the end of the year smartphone owners will become the new mobile majority in the U.S.

image_1_iphone_blog.png

Today, iOS ranks as the second largest smartphone platform in the U.S. after Android, commanding 31.9 percent share of the market with its 35.1 million iPhone owners in May according to comScore MobiLens. During the last five years, Apple has introduced five different versions of the iPhone and extended its reach beyond AT&T to other major carriers, including Verizon and Sprint. A more detailed look at the iPhone ecosystem by device generation found that nearly 3 in every 4 iPhone owners currently uses the iPhone 4 or iPhone 4S, with the iPhone 4 accounting for the largest overall share at nearly 40 percent of iOS smartphones in May 2012. The original iPhone released on June 29, 2007 now accounts for just 2 percent of current iOS smartphone owners, with new generations of the device making the original virtually obsolete.

image_2_iphone_blog.png

As with many consumer electronics products, early adopters of the iPhone skewed male, young to middle age and wealthier than the average consumer. In 2007, 61 percent of iPhone owners were male, more than half were between the ages of 25-44 and 48 percent had a household income of $100,000 or greater.

As the iPhone reached critical mass and gained wider consumer adoption – supported in part by the introduction of new device generations, lower price points, availability through more wireless carriers and a general consumer movement toward smartphone adoption – iPhone owners, too, have evolved. In May 2012, females accounted for a much more prominent share of iPhone owners at 47 percent vs. 53 percent males. Though people age 25-44 still represent a strong percentage of the iPhone user base at 46 percent, the youngest and oldest age segments have witnessed the largest increases in overall share. And while those earning $100,000 and greater still command a hefty portion of the audience, users with income levels of $50,000-$75,000 represented the fastest growing audience income segment, now accounting for nearly 1 in every 5 iPhone owners.

image_3_iphone_blog.png

The smartphone market, with the iPhone at the center of it, has witnessed incredible growth and evolution over the last five years, creating a strong foundation for the rise of the mobile media consumer and creating value for players across the ecosystem. With consumer adoption on the rise and the continued integration of new, innovative technologies, we can only imagine what the next five years will bring. But despite how quickly leadership positions can change in this market, something tells me that iPhone will still be blazing new trails into the future…

[Source: ComScore]

Which Came First: iPhone or Android?

Did the iPhone really come first, meaning Android ripped Apple off? Or did Android come first? Is it possible that both companies independently arrived at the idea for a touchscreen smartphone around the same time?Lately, I’ve been a little… obsessed… with these questions. Apple fans are convinced iPhone came first. Android fans are convinced their open-source smartphone OS came first.Who’s right?I decided it was time to find out, once and for all. So I started digging. I searched and researched and then I searched some more. And in the end, I found that the history of the iPhone and the history of Android are a lot more complex than you may realize.It occurred to me that the best way for our readers to get their heads around this issue was to present it visually, as a timeline that shows you, point-by-point, exactly who did what, when. With the help of our sister site Infographic Labs, we put together the following infographic. Our intention here is not to point fingers or cast blame — or even to draw conclusions, despite the fact that we’re an Apple-centric website. We created it to try and clarify this very muddy issue, so you can see the facts neatly and clearly, and draw your own conclusions.

[Source: Which Came First: iPhone or Android?]