Analyst: Apple customers downloading more apps (and paying more, too)

Piper Jaffray report sees 61% increase in App Store downloads over 2010

Photo credit: Cristiano Betta/Flickr

Apple users have an increasing appetite for applications downloaded from the App Store -- and that includes paid apps.

According to a Monday report to clients from Piper Jaffray analyst Gene Munster, owners of devices powered by Apple's iOS mobile operating system will download an average of 83 apps this year, a 61 percent increase over the average of 51 in 2010.

(Also see: Vast riches await a lucky few iPhone apps developers)

Further, the average selling price of App Store apps in 2011 is $1.44, up 14 percent over 2010. Last year the ASP fell 18 percent.

Munster writes to clients (as reported by Fortune's Philip Elmer-Dewitt), "After the initial race to the bottom in App Store pricing, we are seeing users pay up to add features and games to their iOS devices."

For all of the App Store's tremendous success -- Apple noted last Thursday that it has just surpassed the 15-billion download mark -- it contributes just 1 percent of the company's revenue, as Elmer-Dewitt notes. That's because 82 percent of the apps are free.

Still, without the App Store's 425,000 apps -- more than twice the number available in Google's Android Market -- those iPhones, iPods and iPads would be far less useful (or time-wasting) to their 200 million or so owners.

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