Do not forget that epocrates offers a FREE version of their software called Epocrates Rx. I expect this to be very similar to the one that they debuted back in March. I also think they are going to continue offering it for free when they come out with their iPhone Version. At this point I do not know if they are also going to offer their more advanced version on the iPhone as well.
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iPhone Developers: What are your prices?
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Do not forget that epocrates offers a FREE version of their software called Epocrates Rx. I expect this to be very similar to the one that they debuted back in March. I also think they are going to continue offering it for free when they come out with their iPhone Version. At this point I do not know if they are also going to offer their more advanced version on the iPhone as well.
I'm sure they'll be offering all their versions, especially as in 2 weeks at the SDK launch it was shown with features not present on any other platform.
There's a big difference between an app like Epocrates and Monkeyball. Epocrates and others of its ilk will probably come with a high price tag, but will probably be multi-licensed apps that a hospital or medical practice can deploy to their staff. This kind of app is a tool for a business to make money, and I'm betting they won't necessarily be cheap. An IT department will purchase a certain number of licenses that will be distributed internally for staff to download. I don't think those kind of apps are necessarily the brea-and-butter of the AppStore.
I imagine a lot of apps will be free. As far as price-ceilings, I really don't see it going much above $20. Sure iPhone apps have functionality that desktops don't have, but, who needs CS3 or Logic or other such apps on their iPhone? I don't think there's yet a market for apps priced as high as those and for apps with those kinds of feature-sets. There's going to be a lot of imaginative apps coming down the pike, and I think we will be seeing functionality we've never seen before!
But, who knows what we'll get? The iPhone OS is truly a new platform, and I think there has to be dramatic innovation to meet the needs and demands of it frameworks and functionality. We will probably see a whole new class of apps. It's going to be interesting.
The iPhone OS is what excites me the most about the iPhone 2.0. 3G and GPS or whatever new hardware the update will bring are great, but it's the software that's truly amazing and what I look forward to getting the most. The betas have wet my tongue, I can't wait for the full release!
I imagine a lot of apps will be free. As far as price-ceilings, I really don't see it going much above $20. Sure iPhone apps have functionality that desktops don't have, but, who needs CS3 or Logic or other such apps on their iPhone? I don't think there's yet a market for apps priced as high as those and for apps with those kinds of feature-sets. There's going to be a lot of imaginative apps coming down the pike, and I think we will be seeing functionality we've never seen before!
But, who knows what we'll get? The iPhone OS is truly a new platform, and I think there has to be dramatic innovation to meet the needs and demands of it frameworks and functionality. We will probably see a whole new class of apps. It's going to be interesting.
The iPhone OS is what excites me the most about the iPhone 2.0. 3G and GPS or whatever new hardware the update will bring are great, but it's the software that's truly amazing and what I look forward to getting the most. The betas have wet my tongue, I can't wait for the full release!
bitslap47, what if your estimate comes out low, but your gut tells you its a good app? ie., it solves a great problem but it took an hour to build. Would you raise the price? Alternatively, would you raise a price of a later app if some of the former apps were not performing and so hadn't given you back the modest hourly rate you were looking for?
Having multiple apps makes me consider you luckyFor entrepreneurs, pricing is a headache, and for a person who has spent months developing one app, it probably feels like the most important thing in the world, because it can mean the difference between profitability or loss, popularity, or not. They have all their eggs in one basket, and its hard.
Which incidentally, is why I'm gathering this info. Thanks for sharing your pricing strategies. I look forward to checking out some of your apps.
No problem. I try to be completely above board with my users.
I would not raise the price of an application that I have already sold at a lower price under any circumstance. It feels shady to me. I am not speaking ill of anyone else's practices... Its just my personal opinion and mode of business.
If I do a poor job of placing value on my time and/or products I will just eat the loss and do a better job of it when pricing version 2. I would not bump up the version 2 price just to make up for version 1 losses... Just do a better job to avoid losses.
There are several options, but at the very least state will be saved. There are some unoffically supported things that can be done that Apple seems willing to let slide in some very special cases.
I do not (unless the app store opens after the availability of the final SDK and 2.0 Firmware/Software) simply because the Aspen Simulator has some limitations that don't allow me to *really* test my stuff properly, and I have not been able to validate the simulator itself since I do not have the v 2.0 software/firmware on a physical device.
It should be shortly after though... once we can load the actual firmware on a physical device we will be able to do some proper testing.
I can see developer unit and system testing on Aspen, but QA and UAT should be done on a physical device.
Those other "Mobile Platforms" don't have a desktop class operating system like OS X. And in case you missed the news, Enterprise is coming with the 2.0 update and already there are companies that have been testing it out with the beta version (and seem to be very excited about it and eager to ditch their RIM devices permanently.)
That's the problem with a lot of people here, though the iPhone has phone capabilities, it's really not "just a phone" like the other cell phones or smartphones. It has so much more potential as a handheld computing device going even beyond what PDAs have offered in the past. It CAN be (easily) an everything device and I think this 2.0 update will truly show that. jmho.
Looks good, but your example of the explicit cost valuation seems off a bit.
For example, I write an application that takes me 80 hours (this includes specification, coding, and test time.)
80 x $175/hr = 14000
Add 10% to make up a little for Apple's Cut = $15400
Add 10% for Support Overhead = $16940
I'll then estimate 20,000 purchases since I will use word of mouth only and not actively advertise.
So that works out to $0.847 (16940/20000)
I would price the application at 85 cents.
I think it is just the specific example you used that makes it work out a little funny.
It's not running on a desktop. It needs a mobile class OS.
Been there. On Windows CE (not Mobile) devices, I could set things up to compile for either desktop or mobile, since the mobile had a desktop.
The difference in potential is not in the hardware or OS, since there aren't any big diffs between smartphones. The difference is that iPhone owners think as you do, and that will drive the kind of apps.
bitslap47,
Is my math off, or do you just think the format makes it confusing? How do you estimate how many copies you will sell? I know the 20K was an example, but could you share your methodology?
Is my math off, or do you just think the format makes it confusing? How do you estimate how many copies you will sell? I know the 20K was an example, but could you share your methodology?
consumer app price ceiling
Another way to pose the question of what the market will bear is what is the most you've ever paid for a mobile application?
The most expensive mobile app I ever bought was Pocket Quicken for my Palm, maybe five years ago. I paid $50, at the time an annoyingly high price. It was the only application I never stopped using though. I carried my Palm around for at least a year purely to use that one application, so I'd be happy to pay $50 again.
The next highest were around the $25-30 range. TealPhone, Datebook, some others. All of them felt worth it at the end of the day.
Another way to pose the question of what the market will bear is what is the most you've ever paid for a mobile application?
The most expensive mobile app I ever bought was Pocket Quicken for my Palm, maybe five years ago. I paid $50, at the time an annoyingly high price. It was the only application I never stopped using though. I carried my Palm around for at least a year purely to use that one application, so I'd be happy to pay $50 again.
The next highest were around the $25-30 range. TealPhone, Datebook, some others. All of them felt worth it at the end of the day.
Wirelessly posted (Nokia N70-3 Ireland-Opera: Mozilla/4.0 (compatible; MSIE 6.0; Symbian OS; Nokia N70/2.0539.1.2; 6366) Opera 8.01 [en])
No mention of the idea of multi-licensing for ordinary consumers?
A large number of households likely have more than 1 Mobile OS X device. I personally have an iPod Touch which I will be holding onto when I get an iPhone (come the 9th/6 hopefully) so the topic of multi-licensing fees would be of great interest to me.
No mention of the idea of multi-licensing for ordinary consumers?
A large number of households likely have more than 1 Mobile OS X device. I personally have an iPod Touch which I will be holding onto when I get an iPhone (come the 9th/6 hopefully) so the topic of multi-licensing fees would be of great interest to me.
I wouldn't be surprised if applications are tied to a particular iTunes account as opposed to a specific device. This would be similar to the way that music is now being sold-- put it on any device synced by a particular installation of iTunes.
If it is locked to a particular device, then they've also got to make allowances for easily transferring items across to a new device (i.e. warrantee replacement, phone upgrade, loss of phone, etc).
rob.
Your math is good... no problems there... I think it's just the specific example doesn't fit my particular circumstances.
My estimation of 20K in 3 to 6 months is based on average performance of past products. The type of applications I write are usually very niche products.
For example, SiriusWM5 is for users of Windows Mobile devices that are Sirius Satellite Radio subscribers. They have to fit the specific profile of someone that has a WM device, is a Sirius subscriber, cares about satellite radio, and has enough time to bother using the product to listen. I also do not actively advertise, so the uptake is slow.
Within the first 3 to 6 months I hit 20K users. 2+ years later, I am close to 100K users with about 20% needing to read the FAQ or request support (ask questions) of some sort.
The program is free, but had I charged $4.95 I would have made $500K by now.
I spent 3 hours making the first version, and to be honest, just patched and slapped new features into it... I wasn't even convinced it was useful for anyone except me. Don't get me wrong, it is rock solid, and best of all free... but it is not my best work.
Should I have made $500K for about 160 hours of work (coding and support/website maintenance) or $3,125/hour for something like SiriusWM5? I could be insane, but I say no.
Now I am doing it right. It will support Sirius, XM, user defined stream sources, local radio stations, and allow advertisers to TASTEFULLY advertise based on content. IT will best of all work on all mobile and PC devices and operating systems, and will have a plugin usable by game developers for XBox360 and PS3 games.
In this case I feel I SHOULD make more for this product than SiriusWM5, and I feel most of the money earned should come from the advertisers, not the users. If possible the application should be free... but I think 80-90 cents is fair to cover the server costs and costs of courting the advertisers and game studios. The profit will come from the advertisers if I have done a good job in designing the system.
I hope this helps...
I want to agree with ppl who emphasize that the iPhone is not just a phone. We are not far from seeing an iPhone dock that allows a monitor. Capice? Verstehen? Get it?
IMHO, this platform is "the next big thing," the last big thing being the desktop computer.
On top of that, a computer that can take into account mobility and location will encourage more complicated software. Sure, the software has to be trimmed for resources -- but that's a higher bar to jump over, not a lower one. The programming needs to be tighter and so forth.
So you want to pay them $5 for the trouble? That's WHY the software is so limited compared to what is possible. Watch this thing explode when the first "Gotta Have" app is priced at $45. A whole new world is on the way.
IMHO, this platform is "the next big thing," the last big thing being the desktop computer.
On top of that, a computer that can take into account mobility and location will encourage more complicated software. Sure, the software has to be trimmed for resources -- but that's a higher bar to jump over, not a lower one. The programming needs to be tighter and so forth.
So you want to pay them $5 for the trouble? That's WHY the software is so limited compared to what is possible. Watch this thing explode when the first "Gotta Have" app is priced at $45. A whole new world is on the way.
Could be. It's been done before.
There were video cards and keyboard docks for Windows CE handhelds almost a decade ago.
Current Windows Mobile phones can interact via a host computer or go wireless/wired to a dedicated keyboard & monitor device.
Does anyone know if the iPhone SDK allows user apps to go out the video port? Or is it still locked down just for Apple's video player use?
Locked down as far as I know.
If they start pursuing the business sector seriously - which they seem to be doing - it would be a shame if they didn't at least allow a partner to come up with a presentation dock (with a VGA port) and an app for it. I don't see Apple doing it themselves, but letting someone like 3M, Hitachi, or Sanyo make a product of that sort might be smart.
hey all,
Just got back from vacation. I'll try updating the post soon with new info from the keynote about some pricing.
On another note, if you plan on selling an app and would like to share sales figures, either confidentially or publicly, please email me.
Just got back from vacation. I'll try updating the post soon with new info from the keynote about some pricing.
On another note, if you plan on selling an app and would like to share sales figures, either confidentially or publicly, please email me.
why not...there are at least two options for windows mobile. both are free and have no ads.
Because most likely Sirius made those.
They can legally sue you if you make an app from a company without their permission.
I've put up another post about the dangers of underpricing your iPhone App. Comments are appreciated.