

Why iPhone Apps Are Too Cheap - jacoblyles
http://20bits.com/articles/the-099-app-store/

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makecheck
The proposed iPhone API for in-app charges may finally start to change this.
And the extra costs will not reduce an app's popularity.

Before, your _entire_ app revenue was locked up in that initial download. You
either convinced people to try your app, or not.

But now, it's more sensible: if you have logical ways to extend your app, or
improve it, there will be a way to let customers pay you for those
enhancements.

And customers can use this to reward you for making an App That Doesn't Suck.
You may (eventually) pay $20 for something in $.99 upgrades, but only if you
use it for a long time. If you download an app that you end up hating, you've
spent only $.99 instead of $20.

Then there's the fact that people seem to like incremental costs, even though
they'd often balk at the equivalent cost up front. $59, or 3 easy payments of
$19.95? $600 for World of Warcraft, or $15/month all these years?

