I know that Apple has some 50,000 applications in there, but let's face it, 40,000 of them aren't worth 99 cents.
On the other hand, from the nearly 20,000 WM applications that I have seen, around 75% of them are worth the 15-30 dollars that the developers request for them.
My conclusions: although users that buy phones for playing with it like the idea of buying apps for $1 and throwing them away after 1 use, the quality of a smartphone is measured by the quality of the apps available for it. And this is one of the reasons why I don't even consider moving to another platform at this time, I just can't find there the same useful apps that I have in my WM phone.
As someone that has developped apps in my past (for computers, not for phones), if you want good, professional apps, you need to let the developer make a living out of it. The iTunes store is all about canibalizing the developers. Considering the apps cost 99 cents and 30% of it stays for Apple, this means that if a developer has 100,000 downloads (and everyone here understands how difficult this may be) in 2 years he has made 35K per year, not enough to pay simple bills in the US.
From the side of the average user, maybe he doesn't notice, but he is spending more money than I am, since I download trial versions and only purchase the applications that I really expect to use. So in the same time that I purchase one application for 30 dollars, an iPHONE user has probably purchased 50 applications for 1-2$ each and has thrown all of them away.
So I believe the current model is much more fit to my needs, and surely, to the developer's needs.
I don't believe MS should limit the minimum price like RIM did, but surely encourage the developers to get the right value for their work.
My two cents.
Helio
__________________
Helio Diamant
Editor www.pocketpcfreak.com - The Hebrew Windows Mobile and Wireless Website
Let's say an app was $5 would you care? No one is saying $25 bucks come on! There are PLEANTY of apps for WMobile - Apple is stuck they cannot raise the prices. (Also the difference between Sprint all you can use plan and AT&T is $70 a month - or $840 a year - or $1,640 on a two year contract) GOT TO LOVE THAT iPONE you got!!! Way way to expensive for me!
Many of us don't need an all you can use plan. For my family plan with unlimited text and data on the iPhone and 3 other feature phones, with 700 monthly shared minutes on AT&T is within a few dollars of the same plan on Sprint. Have you looked at Windows Mobile applications? The majority are priced above $10.00 and many are $20+. Nobody is telling Apple developers they can't raise prices. Developers are deciding for themselves how much to charge.
I know that Apple has some 50,000 applications in there, but let's face it, 40,000 of them aren't worth 99 cents.
I would guess from this comment that you really haven't looked at the applications available for the iPhone. There are a lot of very high quality applications available for a $.99, or $2.99 or $4.99. Just because you may not have interest in an entertainment application for $.99 doesn't mean it's crap.
Quote:
Originally Posted by heliod
On the other hand, from the nearly 20,000 WM applications that I have seen, around 75% of them are worth the 15-30 dollars that the developers request for them.
Please, 75%??? You've seen 15,000 quality WM applications that are worth more than $15.00? I'll take your word for it, but I've been using WM for a decade, and I doubt I've seen even 200 applications that I would spend more than $15.00 for.
Quote:
Originally Posted by heliod
As someone that has developped apps in my past (for computers, not for phones), if you want good, professional apps, you need to let the developer make a living out of it. The iTunes store is all about canibalizing the developers. Considering the apps cost 99 cents and 30% of it stays for Apple, this means that if a developer has 100,000 downloads (and everyone here understands how difficult this may be) in 2 years he has made 35K per year, not enough to pay simple bills in the US.
So, a developer that spent a few months writing an application needs to make more than 35K per year off of that one application for it be viable? I don't agree, if this is full time work, the developer will create additional applications that will also earn 35K per year and be able to make a decent living. These are applications, not works of art that the developers should be able to live off of for the rest of their lives. Your argument is only relevant if you can prove the developer makes more selling a WM application at $20 in lower volume. So far the market has proven you wrong as developers are flocking to the iPhone and abandoning Windows Mobile.
Quote:
Originally Posted by heliod
So I believe the current model is much more fit to my needs, and surely, to the developer's needs.
Except developers don't agree with you, they are preferring to develop for the platform that is attracting users, not losing them. I still maintain one of the reasons for the iPhone's success is the wide availability of GOOD, cheap applications.
There are many, many quality applications for the iPhone. From a gaming standpoint WM is not even in the same league as far as professionally developed applications, and almost all of the iPhone apps are less than $10.00. Is EA losing money each time someone buys the Sims, or Madden for the iPhone? Why have we seen official iPhone releases of Doom, Duke Nuke'em , etc, when those developers have ignored WM for years? Why does Ilium charge $9.95 for the iPhone application, but $29.95 for the WM application? They are both high quality applications, but Ilium knows that they will make up the difference in volume on the iPhone. Otherwise, if it wasn't worth their time they wouldn't bother.
This is why I think it's foolish for Microsoft to try an artificially inflate the price of applications for their platform. As you say the applications make the platform, and right now, the applications available for the iPhone are driving people to that platform. Other than PIM related applications, I challenge you to name non-custom applications that you use on WM that are either unavailable on the iPhone , or if available, offer poorer functionality. Apple has messed up the PIM stuff by not allowing developers access to the built in databases, I will grant you that. Other than things like Pocket Informant, I have yet to come across any other apps that I miss moving from WM to the iPhone.
I would guess from this comment that you really haven't looked at the applications available for the iPhone. There are a lot of very high quality applications available for a $.99, or $2.99 or $4.99. Just because you may not have interest in an entertainment application for $.99 doesn't mean it's crap ...
This is why I think it's foolish for Microsoft to try an artificially inflate the price of applications for their platform. As you say the applications make the platform, and right now, the applications available for the iPhone are driving people to that platform. Other than PIM related applications, I challenge you to name non-custom applications that you use on WM that are either unavailable on the iPhone , or if available, offer poorer functionality. Apple has messed up the PIM stuff by not allowing developers access to the built in databases, I will grant you that. Other than things like Pocket Informant, I have yet to come across any other apps that I miss moving from WM to the iPhone.
Have to say that I agree 100% with all you say there! Its the sort of blinkered approach MS and guys like Heliod have that have resulted in the decline of WM - and the App store is exactly what MS need - and not all apps are $0.99 either. TomTom W Europe was £79.99! People will pay what they think the app is worth!
How many WM apps exist because Microsoft completely dropped the ball on updating the OS and interface (which hasn't changed noticeably since 2003 when I started using "Pocket PCs")?
And aren't those some of the ones people think are the most valuable? Like SPB Shell?
I will have to recant that I make it sound like no app is worth more than $1. That's not really what I think. But I think there are a ton of apps out there that are free right now that with a tiny bit of polish should sell for $1, and Microsoft's App store should have them. And the store should be able to sort for "Price low to high" and let you browse the "impulse buy" bargain bin. Even if it means that they have tens of thousands of apps available.
Individuals should be allowed, even encouraged, to make these apps available. They could make more than they make now. This is what I'm criticizing Microsoft for: appearing to discourage it.
As for iPhone apps, they do have some that are pricey. The TomTom gps app (with car kit I assume) goes for $99. So it's BS that ALL iPhone apps are $0.99.
Actually come out with a price and then lower it because buyers are not attracted is not a good business strategy in general.
I do not see anybody in this thread suggesting that everything should be free and a company profits are not generated solely by the markup on the single unit for sale; actually it is a little bit more complicated.
Fritzly,
I guess you never took business classes or economics classes because that is every businesses strategy. How do you think a free market works? You release something believing the demand will be this high but it is a lot lower, so you lower your prices. And vice versa, if the demand is higher you raise your prices. You sell your product at the equilibrium where what consumers are willing to buy is equal to what you are willing to sell. It happens everyday and does not hurt the business in any way.
I guess you never took business classes or economics classes because that is every businesses strategy. How do you think a free market works? You release something believing the demand will be this high but it is a lot lower, so you lower your prices. And vice versa, if the demand is higher you raise your prices. You sell your product at the equilibrium where what consumers are willing to buy is equal to what you are willing to sell. It happens everyday and does not hurt the business in any way.
Besides the fact that I have a Master in International Economics a strategy like the one you describes is the one that an inept management, unable to correctly estimate the highest selling point for product, would ended up dealing with.
The ability to determine the highest price potential clients are willing to pay for your product is not an empiric task or the results of some kind of guess; it is an extensive and complicate tasks that involves the analysis of many factors like general economic trends, comparative marketing etc. etc.
This is, among other similar tasks, what I do and considering what the shareholders pay me it seems I do it very well.
As someone that has developped apps in my past (for computers, not for phones), if you want good, professional apps, you need to let the developer make a living out of it. The iTunes store is all about canibalizing the developers. Considering the apps cost 99 cents and 30% of it stays for Apple
A quick look at today's top 25 most popular paid business apps (below) shows price-points between $.99 and $12.99. One of the top 25 medical apps is $29.99. Today's "featured" apps have TomTom at $99.99, MobileNavigator at $69.99, and Starmap Pro at $18.99.
Developers are free to price (and re-price) their apps as they see fit. There are definitely some things Apple can do to make the App Store better for developers, but I don't think you're going to find the consensus being that "[The App Store] is all about cannibalizing the developers".
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Besides the fact that I have a Master in International Economics a strategy like the one you describes is the one that an inept management, unable to correctly estimate the highest selling point for product, would ended up dealing with.
The ability to determine the highest price potential clients are willing to pay for your product is not an empiric task or the results of some kind of guess; it is an extensive and complicate tasks that involves the analysis of many factors like general economic trends, comparative marketing etc. etc.
This is, among other similar tasks, what I do and considering what the shareholders pay me it seems I do it very well.
So let me get this straight Companies use sophisticated models using marketing data, economic data, etc.. to figure out what price they should sell at (I totally agree - this is how it is done)! But next you are telling me that either they get it right most of the time, or only the succesful businesses get it right most of the time, or you are a genius and only you get it right most of the time.
I find any of them hard to believe since no matter how much data you look at there is still a huge margin for error. I read a report a few years back about how Weather forecasting is the most accurate of any type of forecasting and they only have about a 60% accuracy rating. I mean you know what you do is forecasting demand and price levels. Please tell me that you found a new way of doing it - where is your research to prove this amazing feat that no one else can accomplish? Please tell me??? Just because you get paid a lot for doing it does not mean you have a high chance of being right - all it means is that you have a higher chance of being right then if they didn't do any research. Second, Stock analysts who have a very low percentage of accuracy still get paid a lot. How do you explain that?
[QUOTE=Djblois;711601]So let me get this straight Companies use sophisticated models using marketing data, economic data, etc.. to figure out what price they should sell at (I totally agree - this is how it is done)! But next you are telling me that either they get it right most of the time, or only the succesful businesses get it right most of the time, or you are a genius and only you get it right most of the time.
QUOTE]
You answered your question by yourself: succesfull companies figured it out most of the time, this is the reason why they are succesfull.
A perfect example of a company that did not figure it right is Sony with the PS3; in spite of the fact they now are lowering the price of the console the failure of pricing right in the first instance severely affected their financial results.
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