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I was being conservative with worst case scenarios.

The purchase of a single 99 cent app likely costs apple money. The purchase of a free app does as well, but usually a much smaller amount (the cost for the download bandwidth).

1.99 is probably guaranteed profit. We work with some of the largest downloads in the store from what we can tell, and even at amazon s3 rates, a 1.99 sale should generate a few cents for app.

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