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'Premium' App Store Rumors Revived
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This really kinda ruins the whole app store on many levels.
The App Store functions under an almost perfect free market model. downward pricing is actually a GOOD thing. It means that a true equilibrium is possible. The reason why their aren't $20 apps in the store is because no one has made an app that is worth $20, or if they have someone else has made one similar and cheaper.
The idea of an app store that sells applications with a price floor, means that there isn't a true market equilibrium and therefore consumer surplus has been taken away by producers.
The App Store functions under an almost perfect free market model. downward pricing is actually a GOOD thing. It means that a true equilibrium is possible. The reason why their aren't $20 apps in the store is because no one has made an app that is worth $20, or if they have someone else has made one similar and cheaper.
The idea of an app store that sells applications with a price floor, means that there isn't a true market equilibrium and therefore consumer surplus has been taken away by producers.
It also means we have 183 fart applications and tons of garbage ones that keep many people from finding the good stuff. There's a place for both.
I agree, I check the appshopper.com updates and price changes sections and I always see a tone of the same kind of apps just remade with different names, its kind of annoying. I know equal opportunity and all but come on... do we really need all the knockoffs?
But Those Are Dedicatet Gaming Systems, This Is A Phone, Not That I Dont Love Every Minute Of It But How Productive Can These Apps Be For $20?
This idea will not work. Let's say I make an app theat does something usful and I place it in the premium store prices at $20.
What's to stop some one from making a copy of my program and placing it in the non-premium store.
As soon as Apple said they'd have an app store I predicted here that it would be a "race to the bottom" and no one would invest serious money in developing an app. And sure enough no one is spending the bucks to do major development on the iPhone.
For those not in the software development business. A "medium" size project might have 10 or 12 people working ful time for a year to get the first revision out the door. These people all make "normal" middle class salaries (These people have kids, house payments and so on) and then you add overhead (office space, administrative suport, phones, vacation and medical insurance and so on...) which i typically about 100% of salary. Ten people will burn though at least $1.5 million per year. Likely more. Large projects require lots more than 10 people.
No one is building even medium size projects for the iPhone when the final product sells for $1.
What's to stop some one from making a copy of my program and placing it in the non-premium store.
As soon as Apple said they'd have an app store I predicted here that it would be a "race to the bottom" and no one would invest serious money in developing an app. And sure enough no one is spending the bucks to do major development on the iPhone.
For those not in the software development business. A "medium" size project might have 10 or 12 people working ful time for a year to get the first revision out the door. These people all make "normal" middle class salaries (These people have kids, house payments and so on) and then you add overhead (office space, administrative suport, phones, vacation and medical insurance and so on...) which i typically about 100% of salary. Ten people will burn though at least $1.5 million per year. Likely more. Large projects require lots more than 10 people.
No one is building even medium size projects for the iPhone when the final product sells for $1.