Comments on: iPhone application price points and business models http://www.pinchmedia.com/iphone-application-price-points-and-business-models/ Home Tue, 18 Nov 2008 14:54:12 +0000 http://wordpress.org/?v=2.5.1 By: iPhone native Apps - the great leap backwards? | Web Directions http://www.pinchmedia.com/iphone-application-price-points-and-business-models/#comment-290 iPhone native Apps - the great leap backwards? | Web Directions Sun, 20 Jul 2008 22:48:56 +0000 http://www.pinchmedia.com/?p=15#comment-290 [...] So, are there any arguments in favor of developing native apps for the iPhone? Well, arguably, there’s the whole issue of business models. People, we are often told, don’t buy web applications, but they do buy desktop apps, and so by extension will buy native iPhone apps. So there’s a ready made business model there. In fact, being able to charge for your apps is one of the key points of interest for many developers. [...] [...] So, are there any arguments in favor of developing native apps for the iPhone? Well, arguably, there’s the whole issue of business models. People, we are often told, don’t buy web applications, but they do buy desktop apps, and so by extension will buy native iPhone apps. So there’s a ready made business model there. In fact, being able to charge for your apps is one of the key points of interest for many developers. [...]

]]> By: greg http://www.pinchmedia.com/iphone-application-price-points-and-business-models/#comment-58 greg Fri, 20 Jun 2008 12:09:46 +0000 http://www.pinchmedia.com/?p=15#comment-58 Alex - I suppose anything's possible, but we think that's an extremely slim possibility at best. Apple's too close to the iFund, which has publicly talked about advertising on too many occasions. The question of whether Apple would allow a distributed-for-free application to make significant money through other means without getting its own cut (for the serving costs) is an interesting one which simply can't be answered now - it'll only be resolved in time. Alex - I suppose anything’s possible, but we think that’s an extremely slim possibility at best. Apple’s too close to the iFund, which has publicly talked about advertising on too many occasions.

The question of whether Apple would allow a distributed-for-free application to make significant money through other means without getting its own cut (for the serving costs) is an interesting one which simply can’t be answered now - it’ll only be resolved in time.

]]> By: Alex http://www.pinchmedia.com/iphone-application-price-points-and-business-models/#comment-57 Alex Fri, 20 Jun 2008 06:37:12 +0000 http://www.pinchmedia.com/?p=15#comment-57 I don't think Apple will let you charge outside their app store system since they won't be getting their 30%, so adverts and subscriptions are out. I don’t think Apple will let you charge outside their app store system since they won’t be getting their 30%, so adverts and subscriptions are out.

]]> By: Tom http://www.pinchmedia.com/iphone-application-price-points-and-business-models/#comment-56 Tom Thu, 19 Jun 2008 18:58:10 +0000 http://www.pinchmedia.com/?p=15#comment-56 I think as the market matures, you're going to find the race to the bottom price as you described. However, there will always be a market for applications that deliver value, even when comparable applications might be available for free. I think developers should be wary about underpricing their applications just because they think someone else could provide it for free. I have written an article about the dangers of underpricing your iPhone app if you're interested. http://www.IPHONEAPPENTREPRENEUR.COM/2008/06/the-dangers-of-under-pricing-your-iphone-application.html I think as the market matures, you’re going to find the race to the bottom price as you described. However, there will always be a market for applications that deliver value, even when comparable applications might be available for free. I think developers should be wary about underpricing their applications just because they think someone else could provide it for free. I have written an article about the dangers of underpricing your iPhone app if you’re interested. http://www.IPHONEAPPENTREPRENEUR.COM/2008/06/the-dangers-of-under-pricing-your-iphone-application.html

]]> By: Tom http://www.pinchmedia.com/iphone-application-price-points-and-business-models/#comment-55 Tom Thu, 19 Jun 2008 18:54:02 +0000 http://www.pinchmedia.com/?p=15#comment-55 I think you covered them all, although I would add that the subscription model would also include paying for information, not the application. For example, the application is free, but the information delivered to you costs money. Think Wall Street Journal App, where the news is delivered to you formatted to your phone, with search, updates, video, etc delivered via a native app. You pay for a WSJ subscription, not to use the app. This eliminates the necessity to enter a code in the application to keep it running or to get Apple's approval. Either you're paid up or you're not, all the app does is check and then deliver info. I think you covered them all, although I would add that the subscription model would also include paying for information, not the application. For example, the application is free, but the information delivered to you costs money. Think Wall Street Journal App, where the news is delivered to you formatted to your phone, with search, updates, video, etc delivered via a native app. You pay for a WSJ subscription, not to use the app. This eliminates the necessity to enter a code in the application to keep it running or to get Apple’s approval. Either you’re paid up or you’re not, all the app does is check and then deliver info.

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