Tuesday, July 21, 2009

The $.99 iPhone App Deliberation

If you're like most iPhone and Touch users, the next best thing to a free application is one for $.99. Consumers flock to low priced apps. I have pages of them! The value oriented applications subsequently rank high on sites that track app sales due to their high volume. While shoppers are drawn to the lower priced applications many have found the quality is equal to the price they paid. Now that's not always true and there are some excellent applications for $.99. However, vendors who feel they produce an excellent quality product feel a tremendous amount of pressure to price towards the lower end just to compete with the sheer volume of $.99 applications. For a developer, an apps revenue stream can be greatly diminished by the low end pricing pressure. In a world with thousands of applications, how does one complete with $.99? Apple is discussing if it makes sense to reorganize their categorization in an attempt to address this. It does make sense for "top" applications to have additional dimensions other than just volume of sales. Ratings should certainly be part of the equation. More expensive applications need a way to stay competitive on "top 10" and "top 100" lists. Perhaps "top" lists by price point is the way to go. Any ideas?

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