The iPhone app pricing quandary
Sunday, June 22, 2008

As July 11th approaches (the opening of Apple's App Store), one of the most frequently asked questions we are getting is how much will Mariner Calc for the iPhone cost?
Good question.
In discussions with Apple and several other developers these past few weeks, I've discovered that no developer really wants to be the first to "set the stage." Sure, a few game companies at the WWDC keynote announced they were coming in at the $10 price point, but what about productivity apps? professional apps? what about consumer apps? how about educational apps? No offense to gaming apps as some of them are jaw-dropping impressive, but I wonder if their $10 precedent suggests other apps should be priced higher since there is a greater perceived value in them? Another mindset which might be considered is that an app that will be marketed to corporate America will have a higher price point because the perception is that "I'm not buying it, the company is." Equally important in determining a price for an iPhone app is the new price of the iPhone itself. I know if I'm spending $200 on a phone, I'm going to look long and hard at a $30 app. A few of those and I've spent as much on software as I have on the phone!
Have an opinion? I'd love to hear it.
Mike
Labels: App Store, Apple, iPhone, iTouch, Spreadsheet









5 Comments:
If you are referencing what price the typical consumer would pay for a spreadsheet, I would say anywhere from $15-$25.
NARKO
It's the value of the application, not the aggregate cost of software that matters. I love my iPhone but still have to carry my Palm Treo for the applications (excel, word, filemaker, etc) it has on it that I can access while flying or in a remote country without web access. $10-$30 is reasonable.
The real quandry here is how satisfied id the user going to feel for the amount spent. You could post the app at say $20 only to have a user find out that the app isn't fully what they were expecting, this could damage sales, however strategic pricing at say $10 - $15 for the first release to see what the market reaction is, this would give you a baseline to price maybe a second release, at an increased cost, and more features
I am a teacher so the fact I pinch my pennies is quite well known. However, if this supports the full xls functionality (dropdown boxes, radio buttons, etc.) and if it is compatible with the ipod touch (as it should because most istore apps that do not explicitly require iphone hardware (e.g. the camera, speaker or mic.), I would have no problem paying upwards of 50 for the software. It is worth it. Right now I am using an online sql database to manage student info BECAUSE THIS SOFTWARE IS THUS YET UNAVAILABLE. However, as soon as it is, I am onboard. Thanks in advance for the lovely app.
Thanks for all the feedback everyone. Calc for iPhone is getting close (I can tell because the development team gets sleep-deprived and crabby the closer we get! :-).
Echo - rest assured, you won't need to pay $50 for a copy. :-)
Mike
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