Discounting iPhone Apps Increases Revenue by 159%

Dropping prices on iPhone and iPad apps drastically improves revenue and download volumes, according to one study. Developers can gain a revenue increase of 159% in a week with price changes on iPhone apps, mobile app analytics firm Distimo reports.

Price cuts have a greater effect on iPhone software, with average downloads growing by 1665% in a five-day span. For iPads, downloads increased by 871%.

Developers can see an impact in a short period of time. Distimo's study shows that in just three days, an increase is already visible. And the positive effect is lasting: the longer the sale, the larger the revenue growth.

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