Expected Average Price for Apps?

Alright, so now we know the deal on the App Store, and are aware that the developers are going to have the ability to set the price. My question is, how much can we expect to see as the average price per app? In my own opinion, the first few months are going to be a little too expensive for my tastes. After a while, I expect competitive pricing to kick in, and prices should go down to a more reasonable amount. This is indeed something that developers will consider when pricing new apps, and competitive pricing will definitely come into play @ some point. So, just how much is too much? Does it depend on the app? Or should every app have around the same price? What do you think?

I'm hoping for things in the 10-15 range. At that price point, I'd probably buy 2 or 3 apps that look really useful.

I probably won't pay upwards of $10 for an app unless it is something that will dramatically change my life.

I think they should be priced in the $5 -$7 range, with a lot of free apps. I also think there is a possibility for a free alternative to a lot of good apps that aren't free.

When new app launch with features,its prices little bit costly but after prices go down.Range should be b/w 10-15.

Chris3d said:

After a while, I expect competitive pricing to kick in, and prices should go down to a more reasonable amount.

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I wouldn't be so sure. You have to consider 2 facts: 1. Apple has complete control over what apps will be allowed, or not allowed, to go onto the iPhone, and 2. Apple's revenue from app sales will be a percentage of the price paid for apps.

What does that mean? It means that it will be in Apple's best interest to allow an app with certain functions be the only app on the iPhone with that function. That creates a kind of monopoly for that app in Apple's closed environment where the developer can charge inflated prices that benefit both the developer and Apple. I'm not saying this is what will happen, but it's definitely possible and Apple and developers are in it for money after all.

Regardless of that, I expect the price to be higher than most here. Of course it all depends on how powerful the app is, but I expect the average price to be in the $20-30 range.

True, they could do that...but then how do you explain the free apps? If that was the case, there would be hardly any free apps on the app store.

"And guess what the price for these apps will be... nothing." ~steve jobs, march 6 keynote

Chris3d said:

True, they could do that...but then how do you explain the free apps? If that was the case, there would be hardly any free apps on the app store.

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Do you have some inside info and already know how many free apps there will be? Despite how many there will be, I doubt any free apps will be very powerful in functionality or be a must-have killer app. There aren't many people around who will develop and provide something like that for nothing, unless they have something against making money

Also, just because an app is free doesn't mean it'll automatically be given the go ahead by Apple. Say for a moment you are Apple. Two developers come to you with very similar apps that provide a very good function that you think many people will want. One developer wants to make it free and the other wants to charge people for it. Wouldn't you accept the one that's going to put money in your pocket? Wouldn't you be hesitant to also accept the free app knowing it will reduce the number of sales of the app that costs users money and puts money in your pocket?

Now think if the two developers want to charge, but one wants to charge more. Since Apple's fee is a percentage of the revenue, it's more advantageous to them to choose the app that costs more and will bring them more money. And since it's a closed selling environment that Apple controls, Apple and the developer can get away with charging people more because Apple controls the available apps and people have nowhere else to turn to get apps. You may think this sounds crazy, but it's just basic business sense. It's like a hot dog and a soda at a ball game or the movies. You wouldn't pay up to $10 for those things otherwise, but in a closed environment like a ball game or movie you have no choice.

This is just one of many reasons why I'm not a big fan of the exclusivity of the App Store. I really think Apple should allow people to procure apps from other sources besides the App Store.

fleurya said:

Do you have some inside info and already know how many free apps there will be? Despite how many there will be, I doubt any free apps will be very powerful in functionality or be a must-have killer app. There aren't many people around who will develop and provide something like that for nothing, unless they have something against making money

Also, just because an app is free doesn't mean it'll automatically be given the go ahead by Apple. Say for a moment you are Apple. Two developers come to you with very similar apps that provide a very good function that you think many people will want. One developer wants to make it free and the other wants to charge people for it. Wouldn't you accept the one that's going to put money in your pocket? Wouldn't you be hesitant to also accept the free app knowing it will reduce the number of sales of the app that costs users money and puts money in your pocket?

Now think if the two developers want to charge, but one wants to charge more. Since Apple's fee is a percentage of the revenue, it's more advantageous to them to choose the app that costs more and will bring them more money. And since it's a closed selling environment that Apple controls, Apple and the developer can get away with charging people more because Apple controls the available apps and people have nowhere else to turn to get apps. You may think this sounds crazy, but it's just basic business sense. It's like a hot dog and a soda at a ball game or the movies. You wouldn't pay $10 for those things otherwise, but in a closed environment like a ball game or movie you have no choice.

This is just one of many reasons why I'm not a big fan of the exclusivity of the App Store. I really think Apple should allow people to procure apps from other sources besides the App Store.

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That's a good point, fleurya. I'm looking forward to seeing what the App Store will be like, as there's a few things I'd like to be able to do on the iPhone that I can't do with it at the moment, but pricing will probably be higher than I'd initially expected, and I agree that there will probably be a very limited number of free apps made available, which will likely be of limited use.

Does anyone know if the App Store is going to be available to UK users at the same time as those in the US?

I'm hoping for free!

I heard the iphone 2.0 is jailbroken now. How easy is it to update your iphone while retaining the jailbreak?

fleurya said:

There aren't many people around who will develop and provide something like that for nothing, unless they have something against making money

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Have they not been doing exactly that for months on jailbroken devices?

The only thing they have to worry about is the quality of their app. Otherwise, I see no reason why it wouldn't be on the App Store. True, I have no idea how lenient Apple is going to be with app quality...I guess I'm just optimistic

Steve Jobs introduces the App store 4:08

I'm really hoping that Apple won't take advantage of the situation also, but I just feel that even if it isn't their plan now, the temptation of profit will be too great. Plus I just find their reasons to make the App Store the exclusive provider to be poor excuses. I was a Palm user for a long time, and it didn't take much to determine which apps were good and which were junk. I just feel a little insulted that Apple thinks I can't discern good quality from bad, not to mention the fact that what I think might be a good app for me may not be exactly what Apple thinks is a good app for me.