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Apple wants to keep app prices low because it's better for the platform. They do make money on the app store but they make far, far more money selling hardware. So the function of the app store is to make the hardware more appealing. It's part of the "fun" of the platform that you can buy lots of cheap apps. It gives you something new to play with all the time.

The lack of a return policy keeps prices low. There are few established brands where someone can buy with confidence. So apps need to be priced at a disposable level to get people to take that risk.

It might even generate more total total revenue to keep prices low. Are you more likely to buy 3 apps at $10 or 15 apps at $2?
 
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