price reductions? where is the market pressure?
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 2_0 like Mac OS X; en-us) AppleWebKit/525.18.1 (KHTML, like Gecko) Version/3.1.1 Mobile/5A347 Safari/525.20)
I think natural price reductions will come. ...
Where are you getting this hope from though?
One of the main things that worries me about the whole app store set-up is that as a market it lacks any real pressure for prices to go down, but quite a lot of pressure for prices to go up.
- Because it's (potentially) such a vast world-wide market, an app can be overpriced relative to what most people would want to pay for it, yet still be purchased by enough individuals to make a tidy profit.
- Because it's a monopolistic market (the only market), there are no competitive alternatives to whatever pricing is set by the app makers.
This means that if there are a dozen
sudoku apps or a dozen
tetris apps (likely), then there is some competitive pressure for them to sink to the lowest price, but for all apps that are essentially
alone in their own category, (most of the rest), there is
no price pressure at all. the developer can price the app at will. Even with competing similar apps, one could easily be priced three times higher than the rest and still survive in the marketplace because of the markets size, and the low entry bar to development.
With the current set-up, there has to be at least
two very
similar apps that both do the same thing equally well, for any kind of competitive price pressure to evolve. In virtually all other scenarios, there is none.
Worse, even for categories where there are competitors, the system is tailor made for price "fixing" in that the most likely thing is that two apps by two developers in the same category will end up matching prices. So if you are the maker of one of the two apps in such a situation, all it would take is a phone call to the other developer and both your apps are priced at an identical high price forever, with no consumer or market pressure to do any different.
As long as it's a single, unified, world-wide market controlled by one company, you will never get a "normal" market behaviour and prices will tend to be both artificial, and high for anything really worthwhile.