
Smartphone apps are nothing new. They’ve been around for a number of years, but it is only recently that they have exploded onto the scene. From Windows Phone 7 to Android, everyone is loading up their devices with all kinds of third-party software. Some of these apps are free and some of them are paid, so which strategy makes the most sense for the developer?
One interesting case study to consider is Rovio and Angry Birds. The mobile game has become incredibly popular across several different mobile platforms, but Rovio has taken distinctly different strategies. While the iPhone version is a paid app that users must purchase, the Android version is a free download. That’s because it is ad-supported.
Well, taking a look at some of the Angry Birds stats that have just been released, it seems that both models have done well for the company. Rovio has sold over 12 million copies of the game, but over 30 million copies of the free game have been downloaded.
The kicker is that while the paid version typically sells for 99 cents, the free version is generating over a million dollars a month in mobile advertising revenue. It seems to have greater potential, in that regard, but the paid version makes more money up front. What this means is that if you are developing a smartphone app, there is money to be made either way. The hard part, of course, is creating and marketing an app as popular as Angry Birds in the first place.




