The App Store Price Wars - Will the iPhone App Economy Succumb Under Its Own Weight?
The App Store Price Wars - Will the iPhone App Economy Succumb Under Its Own Weight?
Have you purchased Tetris for a PSP? It costs $10 to buy the game. The Tetris iPhone app on the other hand costs just $5. This is not an isolated case. The prices of iPhone apps are disproportionately lower compared to the same software being sold for other platforms. Here...
Comments
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This is an interesting and complex experiment.
I don't think Apple should change a thing. This is a win-win situation for both Apple and the developers.
For Apple it's obvious. The extra competition and lower prices is a boon for sales and people on the fence will be swayed. Should I buy a Palm or an Apple phone? In the long term Apple is the clear winner. Your cost of use is less because the applications cost less.
A win for Apple.
On the other side Apple has created an environment that developers can create and distribute products for very little cost. They are able to sell products (applications) for less given the volume of sales and the attractive profit split with Apple. A developer can not find any deal better than the AppStore to roll out a new product.
This allows the developer to play, to take chances. Developers are making products for the iPhone that they would NEVER be able to do on any other platform. This is awesome for a small developer trying to make a mark in the world and a fantastic opportunity for the big boys too.
In the end, we all win. Apple has a device people like and it has cost effective applications.
The developer has a huge resource to roll out a new product to an eager audience at minimal cost, possibly striking it rich.
The user has an incredible device that is both fun to use and economical to expand with new applications.
What more needs to be done? Will it implode? I hope not. I say let it run the course and maybe, just maybe we'll all come out ahead.
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The app store is fantastic in that it has eradicated the usual barriers of entry. Now the small guy can get into the mix and profit from the app store. However, I feel that the price wars that we see presently in the app store are causing some serious distortions. I have paid a dollar for a brilliant app and then I have paid two dollars for an utterly useless one. The market should be allowed to decide the price. There should be more places like www.iwikiphone.com and appfire to be able to see exactly what the apps are like from independent points of view and actual users. The prices can be misleading sometimes and it is just pot-luck whether or not you get value or not.
