geekmommy4, great example with the Palm OS development! It's probably the oldest 3rd party mobile development community, so it does offer a long-standing study, especially on free vs pay apps.
I would venture a guess that 90% of what a Palm user can find in pay apps they can find in free or shareware apps. HOWEVER, in most cases free apps don't offer the level of depth that the pay apps do. Look at KSDatebk versus Datebk 6 or Agendus...you can get KSDatebk for free, or you can get Agendus/Datebk 6 for 20-40$...the difference is in how much functionality and developer support you need.
What this indicates, IMHO, is that someone with a solid product, good support, and the right skills can make money. But there's got to be something behind your app besides the IDEA of an app. I also think, much like in the Palm OS ecosystem, good applications are likely to be purchased or licensed by bigger software houses. There's money to made there too, but again, you have to have quality software. Just putting an app out there isn't enough. And you'll be competing against people who have been making mobile applications for a very, very long time. Think Dataviz (Docs to go) isn't already busily coding away? Think Iambic (Agendus et al) isn't already looking for opportunities? There's a lot of heavyweights with a lot behind them, so while there might be one or two breakout stars, it's more likely a little extra pocket change/experience/exposure for small developers and a big boon for companies with the right tools and background.
I would venture a guess that 90% of what a Palm user can find in pay apps they can find in free or shareware apps. HOWEVER, in most cases free apps don't offer the level of depth that the pay apps do. Look at KSDatebk versus Datebk 6 or Agendus...you can get KSDatebk for free, or you can get Agendus/Datebk 6 for 20-40$...the difference is in how much functionality and developer support you need.
What this indicates, IMHO, is that someone with a solid product, good support, and the right skills can make money. But there's got to be something behind your app besides the IDEA of an app. I also think, much like in the Palm OS ecosystem, good applications are likely to be purchased or licensed by bigger software houses. There's money to made there too, but again, you have to have quality software. Just putting an app out there isn't enough. And you'll be competing against people who have been making mobile applications for a very, very long time. Think Dataviz (Docs to go) isn't already busily coding away? Think Iambic (Agendus et al) isn't already looking for opportunities? There's a lot of heavyweights with a lot behind them, so while there might be one or two breakout stars, it's more likely a little extra pocket change/experience/exposure for small developers and a big boon for companies with the right tools and background.