Unstable App Prices… A Disturbing Trend
Author: Robin Rhys | Posted under: NewsTags: app store, apple, iphone, Price Drops
Are low priced apps really as good as they sound? In an editorial by Tracy Erickson, from Pocket Gamers.Co.Uk , she claims that the unstable market at the App Store may be hurting developers.
The prices of popular apps, and those that aren’t so popular, are being reduced in the App Store, which may lead to an alarming trend.
There are thousands of apps for sale, or for free at the App Store, and it’s becoming more difficult for a developer to come up with an idea that stands out amongst the crowd. Even when a developer has a good idea they are challenged with how to market it. More importantly, how do they convince consumers that their app is better than their competitors.
This is the problem that many developers are facing. How do they compete? Well, some developers compromise quality and produce cheap knock offs of the more popular titles like Super Monkey Ball and Tetris. Other developers, who might have quality software are forced to drop their prices in order to stimulate sales and get their app noticed.
The short sale might gain some exposure but it causes anger amongst consumers. Price fluxuations can be an obvious ploy to get the app on the top 25 list in the App Store. Even when developers try the price dropping trick, there is no guarantee that the app will even come close to making it on the coveted list. Now, apps that are packed with quality are forced to lower their prices in order to compete with their own knock offs.
A possible fix won’t be easy, but it has been suggested that Apple needs to play a role in the pricing of apps that are selected for the App Store. A good idea might be for developers to submit a suggested retail price, and leave the ultimate pricing decision up to Apple. One possibility might be implementing a pricing system that all apps would have to go through equipped with certain specifications that will determine the quality of the app and therefore the price.
By having a pricing system, consumers could more readily find a quality app to purchase rather than depend on reviews that may or may not be written by the developers themselves. On the upside apps that were once highly overpriced may be pushed down to a reasonable rate.
Consumer testing of the apps would lead to better quality, rather than just pushing apps out as soon as they’re done. If Apple actually implemented a rating system than developers would be forced to make apps with more quality, but have more of a fair chance amongst their competitors. consumer testing is a great way to guarantee higher satisfaction amongst consumers. The testing would also help work out bugs before the app actually hits the public.
If nothing is done than the market will continue to go on fluctuating uncontrollably. But, the consumer just has to remember… don’t let the price fool you.
Thanks Jeremy for the tip.
There is a much simplier fix. The Top 100 should be based on revenue generated not units. The top revenue generating applications will move to the top of the list. Also, the applications on the device should not be listed in Categories by most recent but should also be listed by the most revenue generated. The most “valuable” applications will move to the top. Problem Solved
Paul on November 13th, 2008 at 9:04 am
Imposing a pricing system is a really strange solution to this “problem”. Why should there be any surprise that 4 months into the creation of a new marketplace, developers haven’t figured out how best to market their products?
And where else has it worked to take pricing freedom away from the creator of a product?
The pricing games seem to indicate a single minded “get on the top 25 list” strategy when there are many other avenues to get the word out on your app. Websites, advertising inside other games (has touchgrind piqued anyone’s interest?), videos, screenshots, web demos. Build a brand, develop a reputation for quality, blog and email market what you’ve got.
Personally, I’ve never found the app description, screenshots and ranking to be sufficient to determine what apps are good; free or otherwise. I actually prefer to check out an app on a website or better yet, check out a youtube video.
The smart developers will find a way through experimentation and trial and error. And consumers will find developers whose products they prefer as well.
Quote: “If nothing is done than (sic) the market will continue to go on fluctuating uncontrollably.”
What is this prediction based on? And what’s the alternative you’re looking for? Controlled fluctuation? Controlled by whom? Unchanging prices?
Speaking for myself, I would be must less interested in hearing what Apple could impose on developers and consumers, and absolutely fascinated by what developers are *actually* doing to show they’ve got the highest quality app, the best interface, the best value for the money.
For example, Labyrinth has kept the price of their full version relatively high. There are some really, really cheap knockoffs but Illusion Labs has avoided the price wars. How is this working for them? Or for Sega with Super Monkey Ball?
Khalid on November 13th, 2008 at 11:29 am
Illusion Labs releasing a Lite version is a playing the price war game.
Ramsi on November 13th, 2008 at 3:34 pm
[...] Unstable App Prices A Disturbing Trend Are low priced apps really as good as they sound? In an editorial by Tracy Erickson, from Pocket Gamers.Co.Uk , she claims that the unstable market at the App Store may be hurting developers. The prices of popular apps, and those that aren’t so popular, are being reduced in the App Store, which may […] [...]
IPhone App Reviews - Unstable App Prices A Disturbing Trend | iFones.com Apple iPhone 3G News on November 13th, 2008 at 10:30 pm
@ Paul (comment #1): “The most “valuable” applications will move to the top. Problem Solved”
Really? Let’s say there are 20 RSS newsreader apps in the store (because there already are). And let’s say they’re ranked in the manner you described. Then, let’s say I’m a genius, and I come up with a new newsreader that blows them all out of the water, except — per your formula — my app goes to the bottom of the pile.
Then let’s say Joe Average Customer is looking for a newsreader. Under your system, why would Joe ever move past the first 2 or 3 apps, knowing that — in theory — the most “valuable” apps are at the top of the list?
Out of 100 customers looking for newsreaders, with 21 of them in the store, under what circumstances would anyone — anyone — ever bother to look at the 21st in the list? Who would ever get down that far? Only super-geeks (like myself) who absolutely want to know which app is the best. But under what circumstances would app #21 ever — ever — move up to the top — even though that’s where it deserves to be?
Your contribution is appreciated, but the system you suggest is fundamentally flawed.
Mark on November 14th, 2008 at 12:52 am
[...] Unstable App Prices A Disturbing Trend Are low priced apps really as good as they sound? In an editorial by Tracy Erickson, from Pocket Gamers.Co.Uk , she claims that the unstable market at the App Store may be hurting developers. The prices of popular apps, and those that aren’t so popular, are being reduced in the App Store, which may […] [...]
Apple iPhone Apps - Unstable App Prices A Disturbing Trend | iFones.com Apple iPhone 3G News on November 14th, 2008 at 6:57 pm
@ Ramsi (comment #3)
How is releasing a free version playing a price war game? By that logic most software from independent vendors, webapps included, are currently gripped by a monumental price war. It is precisely because software vendors release free versions that they can maintain higher prices because they’ve reduced the risk for the buyer by giving them an opportunity to try the product and measure its value before buying it.
If I were to ask Apple to change anything on the App store, it would be to allow developers to link to youtube or quicktime videos and play them within the App Store. Seeing the interface, the interaction, the graphics and getting a full tour of the app on the phone would go a long way toward supporting higher prices for higher quality. That, and ranking comments based on usefulness.
Khalid on November 14th, 2008 at 10:19 pm