Hi AppNewser readers - we're now a part of Mediabistro's SocialTimes.com. For more great App news, reviews, guides and tips, head over to InsideMobileApps.

How Price Drops Affect Sales Ranking in the App Store

Dropping the price of your app in Apple’s App Store can help increase revenues, according to a new report by Distimo. The report, which looked at the effect of downloads based on price drops found that cumulative downloads grew by an average of 1665 percent five days after a price drop in the Apple App Store for iPhone. While not as huge, cumulative downloads grew by an average of 871 percent on the iPad.

Despite a lower price point, this huge spike in downloads leads to increases in revenue. According to the report, revenue increased by 95 percent for iPhone apps three days after a price drop and revenue increased by 51 percent for iPad apps within three days of a price drop.

Here is more from the report: “The effect on downloads of a lower price ends, when the price increases again. Download volumes in the Apple App Store for iPhone drop by -46%, aggregated over five days after a price raise. In the Apple App Store of iPad, the drop in downloads is somewhat higher, -57%.”

Related Stories
Mediabistro Course

Pinterest Marketing

Pinterest MarketingPin your way to a wider audience! Starting December 1, work with the VP of Marketing at SheKnows to learn how to leverage Pinterest for your brand. In this course, you'll learn how to create a Pinterest Playbook to develop and measure your marketing strategy, grow a follower base, run an effective contest, and stay updated on the best practices for this platform. Register now!