Ever since OS. 3.0, the latest operating system for the iPhone, launched on June 17, prices among the top 100 apps in the iTunes App Store have been fluctuating wildly as developers push out apps taking advantage of all the new features in the OS. Some of the new features we are starting to see in apps include push notifications, turn-by-turn navigation, cut-and-paste, embeddable maps, access to external accessories, search within apps, and subscriptions.
Mobile app distribution service Distimo just put out its June iPhone App store report As you can see from the charts above, the average pricing among the top 100 paid apps was pretty steady until the middle of the month, when developers started to test different price points. The most popular price for an app remained $0.99, but the month of June saw more top apps priced at $1.99, $4.99, and $9.99 (the green bars on the chart above).
Distimo also breaks down pricing by category (see charts below). Medical apps command the highest prices by far (on average, about $8), followed by business, navigation, productivity, and reference (all averaging around $4). The category which benefited the most from the new OS was navigation, thanks to the turn-by-turn directions feature. On June 17, the average price among the top 100 navigation apps spiked by about $1. So it looks like navigation apps have gained some pricing power thanks to a the new OS.
Interesting, I have seen a steady increase in the price of iPhone apps however the $0.99 is still the popular pricing model for now anyway.
I predict price the of apps will rise accross all categories especially as iPhone users demand quality applications.
I must have given away well over 1500 apps “Paid for apps! in a month at http://www.appgiveaway.com and alot of the apps were priced over $0.99. Games apps are still the biggest and I think that will continue to dominate for a good while yet.
Cheaper apps please. LoL.
It is time to move from useless software (entertainment) to useful software, where people increase productivity or save time.
Cheap apps are quite weird actually, as you also can ‘buy’ a ringtone for as much as $2. Why then pay this much for a simple feat that you will change quickly and expect helpful software to be even cheaper?
Think about the entertainment / usefulness per hour that you’ll get and this will make a fair price.
So it looks like navigation apps have gained some pricing power thanks to a the new OS.
The ‘a’ can go from the last sentence.
Now back to finishing that Apple app!
I guess most app developers had to work a bit harder to make the switch to iPhone OS 3.0’s SDK. I think that’s the main reason behind the app price hike.
Thats another possibility as to the slight price increase.
G1 Android FTW! :}
I think many developers are staying focussed on developing apps for the iPhone for now anyway
Music quiz apps are also a new category of apps taking advantage of the new features in the OS 3.0. Here is my take at it: http://itunes.c...s/musicquizgame
iPhone vs. Palm Pre, is there any comparison? For those interested in stock prices, I’ve included a chart on how the price of PALM has increased since the announcement of Pre. Then it’s amazing that the price dropped off due to disappointing sales.
I don’t think any company can unseat the iPhone as champ, http://up.zachshouse.org/?p=56
I wish Apple would finally release an iPhone SDK for Windows developers because I’m really not going to go out and buy a Mac or use one to code on. I have a Dell mini that is working as a “hackintosh” and running OSX on Intel but Apple says you have to develop on a Mac to get in the app store.
That alone means iPhone app development is going to be limited to Mac loyalists. I’m an iPhone fan but coding on a Mac is out of the question for me.
*cough* Hackintosh *cough*
I’m fairly certain that Apple’s restriction of the iPhone SDK to mac has really pushed along the Hackintosh movement. Only a little over a year ago–before the release of the SDK–making Hackintosh was a difficult undertaking. Now the community has made it as easy as: download, burn, install.
I’m about to do just the same for my first iPhone dev project, a client of mine just insisting that their mobile dev. efforts be restricted to the iPhone space. Okay, fine. On my way to buy an iPhone now (billing them for it,) but there’s no way they’d buy me a Mac. So, uh, cough cough.
Also, check out iWebKit and PhoneGap, which together look like a promising way to throw together a quick, simple, and cheap iPhone app (perfect for any client who just insists that their simple mobile web site MUST be iPhone-specific.)
test
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Does this study include subscription based app pricing models?
Chaz, this report was based on one-off fee apps as most apps are not subscription yet. Subscriptions will be interesting and we will report on this in the future.
Hi Erick,
I wrote a complimentary article about iPhone app price stability using data from Busted Loop. We’re also watching the App Store, and we made some nice new graphs with price fluctuation within categories. We found that the movement of a few expensive apps has a big impact on the pricing metrics. I hope you check it out and enjoy it!
http://bustedlo...ble-prices.html
Thanks,
Josh Kastelein
@JoshKast
I hope developers understand that we’re in a HORRIFYING ECONOMIC CRASH, and that no one wants to pay big bucks for apps.
I hope developers realize this, and start pricing the app from 99 cents to free.
I pay if is a useful software and increase productivity or save time.
There might be slight chance in price, but we can’t expect a great change in price, except for few apps.
Really Good Work…. You Helping People A lot