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February 20, 2009 1:34 PM PST

Most iPhone applications gathering dust

by Tom Krazit

iPhone users have very short attention spans.

Just 30 percent of people who buy an iPhone application actually use it the day after it was purchased, according to Pinch Media, which analyzed over 30 million downloads from Apple's App Store. And the numbers plunge from there: after 20 days, less than 5 percent of those who downloaded an application are actively using it. The drop-off is worse for free applications.

Those are amazing numbers. It's not a new pattern--GigaOm and TechCrunch noticed this last August--but back then, with the App Store just a month old, it was hard to know whether that usage model would last.

Now it's clear that seven months, 15,000 applications, and 500 million downloads later, things haven't changed. App Store activity continues to be huge; Apple has made the App Store the centerpiece of its iPhone marketing over the last few months, highlighting the breadth and depth of applications that are available on the App Store for business and entertainment.

But if most people don't find iPhone applications very compelling, does it matter how many exist? It's enough to wonder if the App Store is starting to get a bit saturated.

Pinch Media CEO Greg Yardley looks at it a little differently. In his view, Apple has built such an easy-to-use distribution (as well as payment processing) platform for iPhone applications that people find it very easy to move onto the next thing that catches their fancy. The lack of a "try-before-you-buy" feature means iPhone users have no choice but to take the plunge, and given that most iPhone applications are free and the ones that do cost money are very inexpensive, there's little incentive to carefully shop around for the one application that best meets your needs.

Only about 10 percent of iPhone applications appear to retain an audience over time, and most of those are games, entertainment applications such as movie listings, and things like Facebook ("their user sessions must be off the charts," Yardley said).

But developers are still making plenty of money from the other 90 percent, he said. As noted, people are very willing to try new iPhone applications, meaning that building a better mousetrap is still a very viable business model for the world of mobile computing. His advice for developers is to get your money up front, and charge something for your application rather than trying to depend on a free/ad-subsidized model, because the number of people viewing those ads will plummet the day after the application lands on their iPhones.

At some point, however, Apple will need to find a better way to help developers promote their applications within an ocean. "The App Store fails as a promotional mechanism. There's only so much screen real estate" that Apple can use within the App Store window to promote applications, Yardley said, and if you don't get on those Top 100 or Staff Favorites lists, your application languishes.

Yardley thinks there is still a great deal of opportunity for developers on the App Store, which isn't that surprising given he makes his living by advising iPhone developers. And it's true that if the installed base of iPhones continues to grow, there will be more and more niche opportunities to cater to the needs of high-school students and seniors, and everyone in between.

Still, how many more currency conversion (37), recipe (67), and fart-joke (30) applications do iPhone users really need, especially if they aren't using the ones they've already got?

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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Add a Comment (Log in or register) Showing 1 of 3 pages (53 Comments)
by Jetsoftdev February 20, 2009 1:57 PM PST
The dirtly secret of software. Most software on any platform is not used after 30 days.
Reply to this comment
by Hep Cat February 20, 2009 3:27 PM PST
DUH. Krazit can sure write a pageview-rich headline, though.

In other news, each song purchased from the iTunes store by consumers is not listened to in an endless loop, but instead may be randomly accessed or accessed at the user's discretion, with very little actual "listening" occurring.

God, what a stupid story.
by chrgeorgeson February 20, 2009 2:08 PM PST
Some of the reason's why the numbers are so low (in my opinion) is that Apple has locked the phone down so much.
EX: You can't have Fire Fox on the iPhone because "It replicates an application that already exists on the iPhone." Why don't we have a full Turn by Turn Voice activated GPS on the iPhone? Well Apple claims that it's against there TOS.
Hell earlier this week Apple denied (for the second or third time) the South Park app because some people can find it "Offensive.". Well if that's true then people don't have to download it right? Of course Apple doesn't mind selling episodes of this possibly offensive material to the people who might want to buy it from the iTunes store.
Reply to this comment
by seven7dust February 20, 2009 8:25 PM PST
wat r you talking about again ?
this has nothing to do with Apple's rejection policies !
by francissawyer February 22, 2009 2:42 PM PST
It certainly does have to do with Apple's rejected policies and half-assed SDK. Apple prevents developers from developing a vast number of truly useful applications, by preventing third-party iPhone apps from communicating with apps on the computer. They also prevent applications from using the USB and dock connector on the iPhone, which eliminates a whole other legion of apps for interating with other devices or the outside world. Then you have other moronic omissions, like Bluetooth keyboard support.

These pathetic stats are no surprise at all, confirming that most iPhone apps are not productive; they're simply gimmicks.
by Penguinisto February 20, 2009 2:10 PM PST
Like the first guy to comment said... after all, when was the last time you used WordPad, Hyperterminal, or the like... and that's just Windows apps that come with the OS.

(Hell, in the CG realm I have an ancient install of 3D VIZ (think: "3DS Max lite") that I haven't touched in eons...)

OTOH, some apps you just can't seem to live without. Take IrfanView (google it, or download it from CNET's download.com site) for instance. Ever since I introduced my Windows-using missus to it a few years ago, she uses the thing almost daily. For me, BBEdit on OSX and WinVi (on the 'doze work machines) are perfect for scripting of any kind when I don't have good old vim or Kate handy.

/P
Reply to this comment
by Vegaman_Dan February 20, 2009 3:31 PM PST
Penguinisto wrote:

"WinVi (on the 'doze work machines)"

These would be the Windows systems that you have publically stated previously that you do not own, use, or support? Or would these be some OTHER set of Windows machines that you failed to mention before when you said you didn't have/own/use/support any Windows systems?

Nailed yet again by your own comments.
by sciontcya February 20, 2009 4:30 PM PST
Mr. Ballm...er, Vegitable-Dan,

You sure have a chip (AMD?) on your shoulder about your great 'Doze boxes don't you?
I've got some - have 'em at work.
I can comment.
They make me 'doze.
Well, almost as much as your incessant whining...
by Rolker February 21, 2009 2:50 AM PST
Dear Penguinisto,

You can continue going down on Windows, Linux, and keep shouting "apple rules". But the fact is that most people own a Windows base machine.
Secondly, most people use the iphone for? calling other people!. Yep, it is a cell phone. Also using the calendar, notes, etc., which are included in the iphone, can come in handy. But most people just don't need more functions than the applications that come with the phone.
Ho, and just for you knowledge, most of the people around the world (yes, there are other countries outside the US) use Windows/Linux base computers, and don't have an iphone (great phone, btw).
by billmosby February 20, 2009 2:29 PM PST
I've noticed that when I upgraded my App, sales increased by a factor of 3. After two or three weeks, it fell back off. There are quite a few tracking sites out there which provide alerts when most anything about an
App changes, and at that point some people who haven't bought it before tend to buy it.

But it is tough getting noticed, all right, just within the App Store, even in the expanded view of it you get in iTunes. So far it's like owning a ski resort- it's a great way to make a small fortune. Out of a big one.
Reply to this comment
by ewelch February 20, 2009 2:36 PM PST
And of course, Pinch media, which sells developers tools to include in their apps don't have any agenda of their own, do they? I find any company that analyses and sells something at the same time most likely has a hidden agenda for promoting the idea that the way things are not is bad, and they have the answer for making it better.

I'm calling bull hockey on this study.
Reply to this comment
by firi February 20, 2009 3:02 PM PST
They are not supposed to be used daily, they are very specific like conversion apps, level apps, even faking a call (well maybe some use this one on daily basis) but when the moment comes it's really useful. Same way you donīt listen to your entire music catalogue month after month, or maybe the same way you buy things for you kitchen that you use occasionally, but you need to have them. The way i see it is "completly obvious, for the most casual of the observers with limited technical knowldege"
Reply to this comment
by chutinger February 20, 2009 3:05 PM PST
Sure. No one has ever asked me.

Your numbers are Wa-a-aaaa-y off. i've even purchased expensive ($69.00) iPhone apps and use them on a daily basis.

Just put a negative spin on the world, maybe time will slow down.
Reply to this comment
by spectator1 February 20, 2009 3:12 PM PST
I am sure Apple and Developers don't mind as long as Apps keep moving.
Reply to this comment
by JASGA February 20, 2009 3:13 PM PST
Let's face it; the few really good apps are hidden by a plethora of absolute rubbish. Finding the gems on App Store is near impossible.

Not using iPhone apps is the modern day ?shelf-ware?, something that has been around since software was invented.

If I could give Apple some advice it would be:

1. Clean-up App Store and make it easier to navigate.
2. Let the market decide. If an application isn?t getting traction after a fixed period of time, say six months, then kill it and make room for the apps people do want.
Reply to this comment
by seven7dust February 20, 2009 7:43 PM PST
I agree the app store was a great innovation
but Apple has dropped the ball on the way they r arranged
and this whole business of 99c apps is the worst idea ever
Apple should stop the 99c apps
if they want the platform to develop into something more than the walmart of software
by superswiss February 20, 2009 3:41 PM PST
The App Store is a classic example of a middle man not adding any value. All it does is generating revenue for Apple, but finding good applications in there is like finding a needle in a haystack. Plus with the Apple way or highway attitude, better alternatives to native iPhone applications are non-existent, because they all get shot down by Apple. What's wrong with googeling for applications on your PC or Mac, then go to the vendors website and download the application right from there and install it on the phone via Bluetooth? It's worked well for the PC, Mac, Windows Mobile and pretty much any other platform out there. Now MS and Google all are jumping on this consalidated software store concept. I can see that the App Store makes it easier for small developers to distribute their application, but at the risk that nobody will ever discover the application.
Reply to this comment
by seven7dust February 20, 2009 7:50 PM PST
actually most developers have websites and provide links that lead you to the app store
from where u can download so the problem is not with the way it's delivered
but the way the apps r arranged ,and also this whole 99c app crap is to blame

Apple needs to do something about this in a big way before it get totally out of hand
it's bad enough now imagine when they r more IPhones and apps !

IMO adding the genius feature to the app store to find apps most similar to ones people have installed will be a great move

also I hope they kill the 99c apps these don't benefit n e one in the long run !
or atleast there needs to be a premium section for more expensive quality apps !
by Weudel February 23, 2009 11:17 AM PST
<IMO adding the genius feature to the app store to find apps most similar to ones people have installed will be a great move>

I don't think this would work as well with apps as it would with music/ games/ movies... Usually, when you download an app your need is met (hopefully), so you don't need a similar app to do the same thing... I find this trouble on other websites where, let's say, you buy a digital camera, and it decides that you would like more digital cameras... but you just got your camera and don't need another one for quiute some time, thank you...

just sayin'
by mexic0 February 20, 2009 4:15 PM PST
I love my Mac software. I've bought audio, video and graphics software for it. But months go by before I return to some of these applications. Why? Because I don't spend my entire day playing with my music collection, making videos or creating art. In fact, there are times that I don't even USE my computer! The same logic applies to the kiitchen - and probably even Kravitz' kitchen. I have a bottle of buffalo wing sauce from last month just idling in my refrigerator. Does that mean I can't buy mayonnaise or salad dressing until I use it up? I think not. A month or so from now when I feel like having wings again, I'll grab the sauce from the fridge. Stuff lasts forever. Apple store apps have a long shelf life, too.
Reply to this comment
by sciontcya February 20, 2009 4:32 PM PST
Just like:
Singles bought at the iTunes store.
Shoes.
Ties.
Cologne.
Magazines.

So what's the point?
Really?
Nothing against Tom, but this kind of article is amazing for it's lack of meat.
How much software on VersionTracker gets downloaded and never used?
Do we care?
Reply to this comment
by cs2368 February 20, 2009 4:40 PM PST
Jailbreak your Iphone. You can unleash its potential. I have mine jailbroken and I'm lovin it! I can do just about anything with it. I can change the UI to different themes,colors etc.. Too much to describe. Free your Iphone! Get it jailbroken!
Reply to this comment
by SururD February 20, 2009 5:28 PM PST
The point you people are missing is that the advertising-supported model will not work for most software. It doesn't matter why you dont use the app much, if you dont use it a lot those add impressions will never pay the development bill.
Reply to this comment
by patrick_i February 20, 2009 6:31 PM PST
I have maybe 8 to 10 pairs of shoes. I don't use every one of them every day but each one may or may not have a specific purpose and I do use them when I need or want to. Same thing with Apps, I have a unit converter that I need sometimes but not all the time; I have games that I play with when I have FREE time (thankfully I still have a job and not much free time), I have software that has actually helped me lose weight, I have apps for my young daughter that helps keep her occupied and educated at the same time when we NEED it (meaning not every day, every hour). Many apps are like insurance (or condoms), better to have it and not need it than to need it and not have it. Furthermore, unlike Blackberry with it's many models that do all the same thing (messaging), an iPhone (or Touch) is basically a phone that the owner can use for pretty much any purpose they would like it for.
Reply to this comment
by nSeika February 22, 2009 10:15 PM PST
There's also apps you would leave when there is a better alternative.
Having 10 applications that do the same things, 8 or 9 will ends up unused by the user.

I used to download trials I fancy of, because of curiosity. Then most of the time before the trial period ends, I found out that I didn't really need that function.
by homercles82 February 20, 2009 6:40 PM PST
It is a money sink. Apple is no better than any other company out there.

But the drones will never admit it.
Reply to this comment
by sciontcya February 20, 2009 6:43 PM PST
HAHAHA, LOL.
Well "homer" you're wrong.
Apple has a nice pile of roughly 26B in cash, and no debt.
Steady sales, and that looks better than most to ME.
Counterpoint?
by JASGA February 20, 2009 9:02 PM PST
The counterpoint is the that it is not about Apple, it is about the market. If people can't find useful apps among the crap, they will go elsewhere. Nobody is invulnerable. Apple needs to stop being a arbiter of taste (South Park) and start being an arbiter of quality.
Reply to this comment
by Sporlo February 20, 2009 9:30 PM PST
The fact that I don't use many apps very often is the biggest reason I rarely buy apps.
It also sucks that the apps that get featured the most in the Top Paid/Free and Hot/New sections don't come close to showing the best apps out there.
I wish there were more "Best" classifications that can be used to display apps/music. Sure there's the Top and Most Popular things, but naturally anything that's NEW will be displayed, then slowly float to the bottom as the newer items take their places. What I'm most interested is a way to show the apps/songs with the most CUMULATIVE downloads per day since its release (I wish there could be a cumulative views per day for Youtube videos too...). To me that's the best indication of a popular item.
Reply to this comment
by iheartcr February 21, 2009 5:09 AM PST
Not having used the iPhone much I would like to know there is a way for users to vote on apps within different categories. rather like CNET's download section?
If there was such a system maybe Apple could remove anything ouitside of the top 100 every month on a 6 month rolling view. It might tidy things up and make it easier to use aswell as promote innovation and competition to be better.
Reply to this comment
by mac voodoo February 21, 2009 6:30 AM PST
This isn't a surprise to me. The same goes for my own PC or Mac. I tend to use very few applications every day and some hardly ever.
The iPhone/iPod apps I have downloaded have specialized uses, like looking up a local restaurant, checking on a flight, checking out prices for car repairs in the area, finding a level, etc.
It's nice to know that they're there when needed and don't take up a lot of room on the device.
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