The App Store is not a free market

In previous installments I've blogged about Craig Hockenberry's (Icon Factory) and David Barnard's (App Cubby) thoughts on the economics of the App Store.

Hockenberry bemoaned the proliferation of "crapware" that higher-priced apps are forced to compete with while Barnard posted actual numbers from the App Cubby bank account.

In his latest installment, Barnard expresses his frustration with the artificial market forces that are driving down the price of apps, which in turn drives down the perceived value of his products – which he has invested significant time and money to create.

Many developers are not pricing their apps at a sustainable price, or even a fair value for their app, they are using price as a marketing tool.  In a competitive free market, price is one of the ways to compete, and heavy competition generally leads to lower prices, but price isn't the only way to compete. Apple itself proves that a premium product can be wildly successful.

As with Barnard's other post, it's a good read and an excellent insight into the App Store.