The App Store is not a free market

Summary: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.

salesIn 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.

Topics: Apps

About

Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984. He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging.... Full Bio

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