Paid Apps Aren't Dead — but They Are on Life Support

For iOS app producer David Barnard, making money from paid applications in Apple's App Store is becoming more difficult. Barnard is the founder of Contrast (previously App Cubby), which makes apps such as Launch Center Pro [iTunes link] and Perfect Weather [iTunes link].

Perfect Weather, Contrast's latest app, was timed around the release of iOS 7. The app was featured in a number of iOS 7 app lists (including ours) and managed to reach #6 on the Paid Apps rank in the U.S. App Store, quite a feat in the competitive world of app rankings.

SEE ALSO: 20 Apps That Look Great on iOS 7

When it came to revenues for the app, however, Barnard was shocked. Perfect Weather launched at $2.99, the same price as his last app, Launch Center Pro. Both apps managed to hit #6 on the paid apps chart in the U.S. Perfect Weather got an added bump by being featured in iTunes's "Designed for iOS 7" section.

Some, including Tapity's Jeremy Olson, are going as far as saying that paid apps (as opposed to free apps that generate revenue through in-app purchase) are dead.

Barnard, who often writes about his experiences in the indie app development space on his blog, isn't ready to go that far. But he does see that the market surrounding paid apps is shifting.

"Last year the strategy was to build up to a big launch, spike high in the charts, and make most of your money in the first month or so," Barnard told Mashable. "That's exactly what happened with Launch Center Pro. Launch Center Pro made as much in its first month as it did in its subsequent 10 months."

Are users spending less money on applications? According to the latest statistics from analytics companies such as App Annie and Distimo, app revenues for Apple's App Store and Google Play continue to be on the rise.

So what's going on? Chalk it up to a shift in consumer behavior, thanks in part to the rise of in-app purchases in games and other applications.