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Over 1.5 million devices using pirated iPhone apps

updated 01:45 pm EDT, Wed October 14, 2009

Most pirates located outside of US

Piracy is a minor but still important problem for iPhone app developers, says analytics firm Pinch Media. The company notes that shortly after the launch of the App Store in 2008, it began receiving complaints that Pinch tallies of new users were exceeding official figures displayed by iTunes Connect. The discrepancy is now believed to be attributable to piracy, tracked by Pinch since May of 2009.

Of the iPhones and iPod touches tracked by Pinch's systems, some 4 million are currently said to be jailbroken. Jailbreaking is a necessary step before using an unsanctioned app; only 38 percent of hacked devices -- roughly 1.5 million -- are known to have used a pirated app however, a comparative minority. Real piracy is believed to be somewhat higher, mainly due to pirate efforts at evading detection.

Regionally the largest ratio of pirated apps, over 37 percent, is said to be found in China. Almost 25 percent of Russian apps are pirated, and in Brazil the figure is approximately 22 percent. Japan, Great Britain and the US are said to exhibit the smallest piracy rates, no higher than 5 percent and closer to 3 percent in Japan. Piracy is believed to be roughly correlated to the poverty of a country, as rates are higher in countries with lower per capita gross domestic product.

Over 60 percent of paid apps are said to have been pirated at one point, and once cracked, an average 34 percent of a title's installs are thought to be illegal. Pirated copies are disposed of faster than paid counterparts though, seeing high usage for the first two or three weeks after release, only to dwindle into "low but significant" activity for the remainder their lives. They are also used less often as a rule, and for a shorter period of time.

Reasons may be connected to bulk installations, and a higher likelihood of crashes. Few pirates are said to be interested in testing apps before buying them; while the conversion rate for legitimate trial apps is 7.4 percent, illegal apps generate a conversion of just 0.43 percent.

 
Previous Comments

true

10/14, 03:26pm reply

It's true that pirates don't often convert to paid customers, but then again, they are just randomly trying apps, because for them its free.

The idea that this person would have been a paying customer is absurd. Even a trial app person only converts to paying at rate of less than 10%...this article says 7% my guess is closer to 2%.

in other words if you could eliminate piracy via copy protection mechanisms that are uhackable, these pirates would certainly be converted into trial customers instead, but they would be only slightly more likely to purchase the app, than they were before.

Because, finally one article got it right, they don't have money to buy the apps, and it cannot be wished from nowhere.

No examination of the actual facts, should be construed as an endorsement of piracy.

Piracy is wrong, and should be eliminated by better copy protection mechanisms, which are getting better every day.

But, there should be no fantasy about it, the reason companies don't spend millions perfecting copy protection, is because they well know it isn't going to cause a boom in sales.

Jonathan-Tanya

Fresh-Faced Recruit

Joined: Oct 2004

+4

why they don't

10/14, 03:29pm reply

The reason why companies don't perfect copy protection, even though the tech has the promise of being almost 100% effective - it's expensive. Too expensive to be worth the effort, for only marginally better sales.

The reason why they prefer the far less effective method of asking the government to make everything a felony and put teenage mothers in jail -- because its free.

It shifts the costs from their budget, to the public budget. Regardless of how little it helps, its free, to them, and it helps, a little. So they go for it.

As citizens, we should think about defecits, taxes, costs, and what we think is the reasonable answer, and our motivations may be different from apple corporate.

Jonathan-Tanya

Fresh-Faced Recruit

Joined: Oct 2004

+3

AntiCrack is an easy solution...

10/14, 04:01pm reply

I'm using AntiCrack http://www.drobnik.com/touch/anticrack and have no problems with apps getting pirated! I even gain money out of these illegal copies offering ad-mop to users and transfer many of them back to the App Store buying my app ;-)

mobiledata

Fresh-Faced Recruit

Joined: Oct 2009

-2

iTunes Home Sharing

10/15, 09:50am reply

Ever think of people who have multiple devices that use the same app? With this new iTunes sharing, or anyone authorizing on more than one computer, or someone who "backs up iTMS purchases" before wiping an iPhone/iTouch can somewhat legitimately store or use their app in more than one place.

danviento

Fresh-Faced Recruit

Joined: Dec 2005

+1

If you have an iPhone, money is not the issue.

10/15, 11:45am reply

Seriously, if you can afford an iPhone and the data plan, money is not an issue for you to buy most apps which are in the .99-4.99 price range. To put that in perspective, that is less than the price of a typical McDonald's value meal.

Money is not a barrier in any country for people with enough money to acquire an iPhone. The barrier is amorality and a belief (caused by open source) that software has no value. These pirated apps are out there in the jailbreaking community and some people with no sense of right and wrong or those who think that just because some software is offered for free that all software has no monetary value.

Open source software is offered free by choice of the authors but that does not mean that the cost of developing software is free in terms of money or the monetary value of time spent. Other people choose to charge money for their software and that is their "right" as copyright holders to dictate the terms of distribution.

aristotles

Senior User

Joined: Jul 2004

-3

Re: money

10/15, 04:37pm reply

Um, aristotles, you do realize that the iPod touch also comes into play here, and probably makes for a far larger base of iPhone OS devices than the iPhone.

testudo

Fresh-Faced Recruit

Joined: Aug 2001

-1

poverty correlation is illusory

10/16, 02:43pm reply

I guess aristotles has already said it, but it has to be pointed out that the correlation to poverty within the countries with the highest piracy rates is just a made up "factoid." It could be for any number of reasons and just picking one out of thin air like that is poor analysis at best. to say that the countries with high piracy rates are impoverished is just an observation, there is no reason (at least no reason given), to link it to the piracy. All of these countries are going to have things in common that other countries with low piracy rates might not have, the simple correlation doesn't imply causality in any way.

If one was going to make an assumption in the first place, it would make mores sense to stay within the scope of the issues being discussed (breaking the law), and pin the discrepancy to the legal systems of the countries involved and their efforts to stamp out piracy. Again, as aristotles implies above, the countries in question are very well known to be "hotspots" of corruption, illegality, and immoral and generally selfish behaviour to one's fellow citizens. Places where the "social contract" and the belief in the law and government is generally as weak as it can be.

Gazoobee

Fresh-Faced Recruit

Joined: Feb 2009

0

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