Comments on: The Race to the Bottom for Native Apps https://www.teehanlax.com/blog/iospricing/ We define and design custom experiences in the digital channel Thu, 23 Jan 2014 20:49:47 +0000 hourly 1 https://wordpress.org/?v=4.8.1 By: Bully5 https://www.teehanlax.com/blog/iospricing/#comment-134187 Mon, 31 Oct 2011 10:47:23 +0000 /blog/?p=4062#comment-134187 Beautifully written, Adam. Thank you so much for sharing your thoughts. One thing that kind of crossed my mind is JOBS (not Steve Jobs but jobs that people work). I mean, doesn’t every action have a reaction to it? What I’m saying is, it seems like there are less than a handful of app developers turning a realistic profit from app development, followed by a herd of hundreds of thousands of devs who sell a few $.99 cent apps and don’t recoup investment (let alone turn a profit).

Maybe I don’t understand how things work in development but I can see how Rovio and it’s Angry Birds can afford to keep and pay a staff. But what about the heaps of devs on $.99 cents who can’t make enough profit to even keep a staff? Won’t those jobs be cut during the flight to the bottom?

I hear soooo many people complain about jobs in general being outsourced and job-loss in this country. But it seems to me (and it’s just my humble opinion) that consumer demand for free and under-a-buck stuff may be adding to that problem.

It’s not just game development that is facing this dollar store mentality, book publishers and authors are going through the same thing making the transition to Ebooks. Suddenly, consumers don’t want to pay more than 99 cents for full, downloadable books, especially on Amazon’s Kindle devices. I think you noted that it’s the same thing with music on iTunes. Consumers were saying that a song should actually cost less than $.99 cents. Then when Amazon priced Lady Gaga’s Born This Way album at 99 cents, consumers cheered & claimed every whole album should cost $.99 cents.

Something in me just KNEW iTunes buyers were going to strike actors next on their list, and sure enough Apple TV tried to get entertainment content from NBC, FOX, UNIVERSAL, to sell for $.99 cents (and of course make up the low price by selling in so-called “volume”). I’m surprised NBC went along with this. They made nothing but peanuts, and Apple users got their TV shows for pennies and ran off. It was stupid. And Apple even had the nerve to ask for a 30% cut of each show sold, knowing damn well it was them that needed those shows, not the other way around!

I know this is long and I’m sorry about that, but that’s one thing I DON’T LIKE ABOUT APPLE! They cheapen everybody else’s content to sell their devices and at the same time get consumers to believe content is worth nothing but devices are worth $400-$500! Apple didn’t do this themselves: an army of app developers, poor musicians, and down and out ebook authors yell to defend them. And of course Apple (and Amazon) have consumer backing on the low and free price points, so they’re going to defend these platforms as well.

Let the market dictate pricing? If every company did that, everything would be FREE because people would pay ZERO for everything if they could (myself included, probably). And then more jobs slashed and more people unemployed and complaining about it. It’s a circle that no one will admit to is there, or is it just me that has contemplated this?

Again, sorry this is soooo long. I just had a lot on my chest about this. Thanks for letting me post this comment!

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By: TWiT Commander https://www.teehanlax.com/blog/iospricing/#comment-118553 Mon, 18 Apr 2011 03:31:47 +0000 /blog/?p=4062#comment-118553 I friendly note.

The refund period for purchases made at the Android Market was never 30 days IIRC. I used to be 24 hours, but has recently been reduced to just 15 minutes, which happens to be 900 seconds more than you get at the iOS app store. ^_^

Personally, I find the 15 minute window good enough to test the basic functionality and performance of the app on my device, not that performance is a particular concern since I use a Nexus One. It’s the not-so-powerful Android phones where the refund window is particularly useful.

Speaking of Android, Amazon supposedly has an emulator in the works which allows you to demo an app in their App Store on a desktop in a browser running Adobe Flash.

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By: Adam Schwabe https://www.teehanlax.com/blog/iospricing/#comment-118100 Tue, 15 Mar 2011 17:25:40 +0000 /blog/?p=4062#comment-118100 Kudos Matt, the app looks great! You’re in a real niche market where you’ve provided a low-cost alternative to expensive, proprietary gadgets.

You guys have clearly invested a lot in marketing, and it shows. Client-services companies working to develop products are in the unique position that they can self-fund projects and potentially invest heavily in them (where they’re essentially acting as their own VC)

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By: Greg Washington https://www.teehanlax.com/blog/iospricing/#comment-118093 Tue, 15 Mar 2011 14:59:50 +0000 /blog/?p=4062#comment-118093 I couldn’t agree more. Well said Adam!

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By: Denis https://www.teehanlax.com/blog/iospricing/#comment-118089 Tue, 15 Mar 2011 13:41:35 +0000 /blog/?p=4062#comment-118089 Great post on an important topic – and with an editorial view that I feel is underrepresented in the mainstream.

I had much the same feeling when I saw the price point of apple’s iPad2 iMovie and Garageband apps. We’re truly seeing the impact that supply/demand manoeuvrings coupled with “big-firm development” (potentially at a loss) is having on this marketplace.

Thank you for posting on this topic and for the clarity in which it was done.

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By: Matt Henderson https://www.teehanlax.com/blog/iospricing/#comment-118088 Tue, 15 Mar 2011 13:37:22 +0000 /blog/?p=4062#comment-118088 I disagree that users are — in general — unwilling to spend more than a few dollars on an app. Our app — RaceSplitter — is a split timer for sports like nordic skiing. It is priced at $25, and is selling well (in fact, it was the 4th top grossing app in the Sports App Store for a while). To justify the price, we point out that the cost of comparative physical devices is more than $500+. Also, it’s very important to do your own marketing, and don’t rely just on Apple.

(BTW, 37signals just published the story of our app at: http://bit.ly/foorWc )

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By: David https://www.teehanlax.com/blog/iospricing/#comment-118087 Tue, 15 Mar 2011 13:20:00 +0000 /blog/?p=4062#comment-118087 Well put. The 99 cent app store is an unfortunate consequence of iPhone users inability to properly understand the complexity and time involved in creating a good app. Still – the success of indie developers like guy behind Tiny Wings keeps me going. I believe well designed/developed apps eventually get rewarded.

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By: Timbot https://www.teehanlax.com/blog/iospricing/#comment-118085 Tue, 15 Mar 2011 13:05:18 +0000 /blog/?p=4062#comment-118085 Too true!
The most I ever paid for an app was Sketchbook by Autodesk which was $7. And is is astoundingly good.
It is not going to be enough to just make an app any more. Support, interesting content and updates are what will keep making revenue, and it won’t be a fast process, it will take time.
-t.

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