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The appcubby blog has a fascinating post up on App Store price ‘deterioration’. It cites numerous examples of well-known and blue-chip type apps that have had to give up on their original $10 (or $9.99) pricing and succumb to the downward price trends of the App Store, and puts forward the argument that for most apps, the price ‘ceiling’ is now $5.
It’s a pretty worrying sounding article if you’re involved in apps development for the iPhone OS, and to my mind, even if you’re just an avid iPhone apps fan and user.
Here’s just a brief example of some of what sounds so worrying:
Lots of cheap apps may seem good for the average App Store shopper, but it’s ultimately bad for the iPhone platform and the future of all mobile software development. Though the platform appears healthy and vibrant from a distance, the poor business opportunity of the App Store is not lost on those who actually have skin in the game. Most iPhone developers I spoke with at WWDC view the App Store more as a casino than a business. You can play all your cards just right and still walk away with nothing. Or you can get lucky on a single hand and walk away flush with cash. That’s true of many businesses, but is even more apparent with the hit driven nature of the App Store. Because of this, most developers I spoke with at WWDC (even the VERY successful ones) were looking to spread risk among several small apps rather than creating one amazing app.
The article also has a lot of good, constructive suggestions for how the App Store can be improved (which apparently Apple are keen to do) – and not just in the pricing area. For example:
People like to "kick the tires." Apple Retail stores are designed to help shoppers fully experience Apple’s products. The computers are fully loaded with full versions of software. The iPhones have apps pre-installed for shoppers to play with. Most everything is spaced out in a way that encourages shoppers to spend a few minutes kicking the tires. Even with software and services Apple recognizes the value of offering demos. MobileMe, Aperture, and iWork all have full featured, timed demoes. Developers need a way to let shoppers fully kick the tires. "Lite" apps are woefully inadequate and introduce all sorts of problems of their own. A timed (5 days?) or triggered (by completing a certain number of levels, etc.) trial period would be best.
Anyway, the appcubby blog post, and lots of coverage of it round the web, got me thinking about my own attitude to apps pricing and whether I’m still willing to go as high as $10 for an iPhone app.
While I can definitely say that my price expectations have come down over the course of the App Store’s life – and I’m as keen to spot the $0.99 and $1.99 apps as the next guy – I can also say that I will still happily pay $10 for an app if I feel that it is a seriously strong app and one i”m likely to get regular and frequent use out of.
I will sometimes pay (and have paid) $10 for a game if I think it fits the regular, frequent use bill – but I’m much more likely to want to go to $10 for a productivity app.
One example I can offer is Things, the superb task manager app from Cultured Code. It is currently priced at $9.99. I bought the app when it first came out (as well as its excellent desktop Mac version) – and would buy it again at $10 in a heartbeat.
How about you all – will you pay $10 for an app? If yes, which type, or which ones would you go for at that price level? Does the downward trend on prices and the idea of a $5 ceiling for iPhone app prices worry you?
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{ 18 comments… read them below or add one }
Sure I would pay $10 for an app, I have bought a couple of them. Mostly they have been productivity apps like PocketInformant, Things, etc. When it comes to games though, I look for a lite version to help me decided whether it is worth it or not. No lite version, then I just skip over the game no matter how it is rated and raved about.
I have paid $44 for an app, with 2 $20 add ons. even though the app store is riddled with $.99 apps there is nothing wrong with paying $10, $20, or even $30 if the perceived value of the app is there. Pricing is a developers prerogative. They are not forced to charge less because others do. They get to antsy for the quick sale instead of just knowing the quality of their product will bring buyers over time. That said…
I typically won't pay $10 for a game. I go through them to quick. $4.99 is the max and even that is a stretch. So I guess ultimately genre is an important factor in the decision.
I have paid $9.99 for many apps. Some were good like NFS underground, IM+ and Doom. Some were really horrible like offmaps and few others that I have deleted the same day :s. A trail period would a very good idea.
I've also paid $10 for certain apps. Phrasebooks and the StandAlone Crossword app come to mind. I would also pay $10 for a good productivity app, if it let me edit and sync documents, and I knew it was good. Don't need to pay for a to-do app via the iTunes store, as I use RTM and pay them an annual fee for their Pro service. But I would pay via iTunes for a good to-do app otherwise.
Part of what makes me reluctant to buy more of the higher-priced apps is the lack of ability to test them first. I agree with appcubby's point about trial periods. I don't want to spend too much on an app that I'm only relying on user ratings for. If I could have a trial period, I'd be more likely to pay a higher price.
Usually, i try an app using a cracked version, then (if it satisfied me) i buy it. I think i've spent more than 50€ on appstore. So far the most expensive app i've bought is beeijive, at 13€.
So yeah, i'd buy a 10 bucks app if it's worth
@ Sean, J, Ra'ed, Lesley, Diego – glad to see there are at least a few of us who are still willing to pay $10 and more when an app's quality and usefulness merits it. Diego – I have to say I'm against cracked apps, but if you are genuinely using them in place of a trial well then … all the more need for the App Store to start offering trial versions. Ridiculous that they haven't managed that yet.
Yeah, that's the problem. I know i could use lite version, but they are, uhm, lite. Usually there aren't some of the feature you want to try out, so you have to use cracked versions. I'm a student, i'm eighteen, i can't afford buying apps in this "blind" way.
I hope they're going to address that soon – seems such a big, obvious one.
Pfff… let the market decide. If you want to generate revenue and a $10 price point isn't moving, your choices are to sell less apps, or lower the price. Either a developer wants a piece of the sweet market growth, or they don't. Either way, the market will continue to expand.
I believe the market will continue to grow as well – but do think some of the fears about quality of apps are legitimate concerns, given the quotes in that post from some heavy hitters in the apps development arena.
I too have paid $5 to $10 for a couple of apps. I've regretted a couple of purchases, but probably far more of the $.99 versions. I think that a trial period would allow more sales of these apps. You have to really think about the $10 app and as Diego said its hard buying apps 'blind'. All in all though I have no problem buying the higher priced app if I think I'll use it. I am just going to really take a look and see if anyone else I know has it and if they like it. Some of the best apps though I have say are ones that were free. Its just amazing that someone would take the time to develop an app and then give it away…kudos to them.
I've probably made the most mistakes at the lower purchase points as well. And I completely agree that there are some amazing free apps out there.
What everyone seems to miss in all of this talk over app store pricing is not every app is an app that everyone is going to want. Take Jaadu VNC for example, very high cost app, took me a while to decide (had to see some sound reviews on if first) once I did though, it's been worth every penny, but to my point the number of people that are going to need this app (or even want it) is going to be significantly less that the number who will buy "doom" (or whatever) THe other point (seems obvious to me) people miss is, many "buyers" of apps are all of about 12 or 13 (hence the massive number of fart apps) and would be on the less sophisticated end of the spectrum and not likley to buy many serious apps.
All this "hand wringing" and "gnashing of teeth" over app store pricing gets tiresome. The market will eventually sort itself out. Unfortunately for some devs/companies it may take longer than they can survive.
That said, Apple really needs to get off their duff and implement something like "smart playlists" for the app store so we can have a remote chance of seeing the wheat in all the chaf. Fawd I'd kill for the ability to screen out all those devs who produce 25, 50, 100 or more one trick pony apps (call dad, call mom, call for some kind of freaking relief from retard developers without a clue!!!!)
Please Apple, give us some serious tools to mine the app store. Now!!!
Rich
I agree with your first couple points, mostly. Of course not all apps appeal to a wide audience, and each of us has our priorities and preferences. On the idea that many buyers are 12 and 13 year olds – that may be true, and likely some of them will use less 'serious' apps – but I wouldn't class them all that way too quickly – hell, there are 12 year olds out there developing apps.
I would like to see something like smart playlists or a Genius type feature in the store. And I would love to have a way to banish the one trick pony apps from my line of sight, for sure. In fact, though I'm not sure it's at all feasible, I'd like to see a 'Novelty' section established and have a lot of harmless / useless stuff moved to that section.
I'll totally buy one if it comes with a subscription to content. E.g. I would pay $50+ for the NYTimes app.
Wow – surprised to hear that. I don't think I'd pay that much for any single news source.
I think the situation is as it should be with the market dictating how much a developer can charge. Don't forget that the App Store is delivering unprecedented volumes of sales to many successful developers. Many are making up any lost revenue in volume.
I have thought that Mobile applications have been over priced, with many rivaling desktop application pricing, despite being far less complex. This has been particularly true with Window Mobile Applications. With Apple finally handling distribution, and giving developers a fair cut of the sales, developers realize they can make a lot of money even when charging less than $5.00 per application.
The biggest issue developers need to address is marketing. Many think all they need to do is put their app in the app store and people will find it. Those that really want to succeed need to find new ways to reach those of us with an iPhone, so we know about their work.
Prices for the WinMo platform have been very steep I must admit. Seems odd to think how much we paid for apps on that platform. I agree that marketing is a critical area as well.
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