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I have my doubts that prices are going anywhere but down. You can stubbornly keep your app's price high if you want but a couple of dozen others will gladly step in your place.

I think the author is wrong here; apps do offer real value but they are still close to being worthless economically. What developers should start realizing is they shouldn't spend so much effort on todo lists, podcast clients, rss readers, or any other trivial app category that many people do as side projects for free for fun.

As a result we might get more genuinely innovative apps as developers look more closely at what niches are being underserved.

Exactly. If you can't build something unique then don't complain if there are 100 other developers (some of whom may come from developing countries) who are happy to do for it less.

There is a new era of apps being ushered in as a result of Bluetooth LE. Take advantage of it.

As Arment notes, there's no way you can build something unique unless 1. you've got dedicated hardware (in which case you'll sell the hardware and give away the application) or 2. it's a small niche market through which you can stay under the radar of price dumpers

But there are nearly infinite numbers of "small niche markets", many of which are willing to pay a lot of money because in their case the app provides enormous value.

There are a lot of small niche markets, but I am not convinced that they'll generate much revenue because--hey, it's still just an app, why does it cost so much?

If the only way to do anything in mobile is to constantly be outrunning the onrushing boulder of the shitty free knockoffs, it probably makes more sense to just go do something else. (This is where I'm at now; there are no good applications for a number of things I really want, but there's also no way to recoup the time investment of making one just so you can get one-star reviews for "$5 is too expensive".)

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