Yes, free apps do make millions of dollars. To explain how this process works i will be using the Messaging app WhatsApp as an example.
WhatsApp is an instant messaging service for texting, calling and sharing media. The app has multiple attractive features which has only increased it's popularly over time, some of these features include; free calls and encrypted messages from end to end meaning only the recalcitrant can read the messages which are being sent.
The app which was launched back in 2009 now has over 1 Billion users as of 2016 with the app recently being acquired in 2014 by social networking giant Facebook for $19 Billion when it only had 400 million users. WhatsApp is currently one of the most download apps in the world with it frequently staying in the top 10 free apps in the app store along with others of its kind such as Snapchat, Twitter and Facebook.
WhatsApp's revenue fell slightly in late 2016 after a blog post from January 2016 announced that the app would be putting an end to subscription fees for it's users, this meant that the companies revenue was limited and this wasn't the best direction in order to make money from the app in the coming future, Many users thought WhatsApp would introduce the usage of third-party apps, however this is not the case even as of today. The messaging apps primary makes money from selling software and services which are integrated within the app itself.
Not only have these tools helped the app make money it has also boosted its user base and growth massively since the Facebook takeover in 2014, WhatsApp boasts impressive stats which included;
- Users send over 55 Billion messages per day
- There are over 1 Billion active users on the app
- Over 200 Million voice messages are sent each day
Further add on's to the app appear to be coming soon, as in September of 2017 WhatsApp announced they were going to be launching a new business friendly app allowing users to connect with businesses on a more simple and personal basis.
At the current time WhatsApp seems like it wants to grow it's user base rather than make the most amount of money possible. Although others apps of it's kind are trumping WhatsApp in terms of profit, the app still remains the most used messaging app on the planet and although Facebook has yet to make large profits from the messaging app reports from Forbes.com estimate that WhatsApp could make anywhere between $5 Billion and $20 Billion over the coming years as long as the monetisation strategy remains effective and strong.