Posts Tagged ‘App Development’

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App refund clause nothing new

March 26, 2009

TechCrunch, and others, reported yesterday that Apple’s new iPhone 3.0 SDK agreement could bankrupt developers. Apple’s contract states:

In the event that Apple receives any notice or claim from any end-user that: (i) the end-user wishes to cancel its license to any of the Licensed Applications within ninety (90) days of the date of download of that Licensed Application by that end-user; or (ii) a Licensed Application fails to conform to Your specifications or Your product warranty or the requirements of any applicable law, Apple may refund to the end-user the full amount of the price paid by the end-user for that Licensed Application.

In the event that Apple refunds any such price to an end-user, You shall reimburse, or grant Apple a credit for, an amount equal to the price for that Licensed Application. Apple will have the right to retain its commission on the sale of that Licensed Application, notwithstanding the refund of the price to the end.

But today, CNET says it’s “much ado about nothing.” The article is pretty lengthy, but in a nutshell:

The clause has always been in the contract. And even if someone wants a refund, it’s not easy to get. Apple will most likely replace apps that have technical problems. If you really want a refund, you will have to file something legal. You can’t complain that an app didn’t live up to your expectations.

Apple has granted some refunds although it’s a very, very small number. And the money the developer loses goes towards paying the processing transaction fees.

iPhone App Store

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To Advertise or Not to Advertise – That’s the Question

February 20, 2009

Fortune has a great article out today discussing the life span of iPhone applications. If you’re a developer, or are just interested in the App Store phenomenon, you know that there are two types of money-making apps: ones people pay for and ones that are free but have advertising in them. So, which is the way to go?

Philip Elmer-DeWitt breaks it down:

In a slide show packed with hard-won insights, Jesse Rohland and Greg Yardley of Pinch Media offer the results of a statistical analysis of 30 million App Store downloads. Among their findings:

* Users tire of applications pretty quickly; fewer than 20% ever come back to run a free app the day after download.
* Time spent on any app declines by almost 1/3 in the first month, stabilizing at just under five minutes.
* Paid applications see slightly more use than free apps and are used for slightly longer periods.
* The biggest usage differentiator is category — games are used for longer periods than any other type of application.

Behind these general observations are some very useful stats:

* Appearing on the top 100 list increases daily new users 2.3 times.
* The average price cut increases demand by 130%
* The average price increase drops demand by 25%

Bottom line: only a few of the stickiest applications — less than 5% — are suitable for advertising at the current ad rates, and a developer won’t know if he or she has got one until after launch.

iPhone App Engagement Time