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Sat, Nov 21, 2009 - 08:54 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

iPhone app prices fluctuate as developers move to iPhone OS 3.0; Navigation apps gain pricing power
Thursday, July 02, 2009 - 12:46 PM EST

Apple Online Store "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," Erick Schonfeld reports for TechCrunch.

"Mobile app distribution service Distimo just put out its June iPhone App store report... [and] 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," Schonfeld reports.

"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," Schonfeld reports.

Full article, with charts and graphs, here.

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Jul 02, 09 - 11:59 am Comment from: judy

And expect the app prices to go up even further.

Expect a lot of app developers to start monthly subscriptions too.

Nothing like that steady auto-deduction revenue stream coming in every month.

Jul 02, 09 - 12:52 pm Comment from: Driver

I'd never buy one of thsoe Nav apps that has a monthly fee. Better to pay more and 'Own" it. I think the TomTom will be like that,not to mention the cradle that will includea GPS amplifier and hands free capability. if it's a good mount that integrates into my car stereo then that alone makes it worth doing to me.

Jul 02, 09 - 01:27 pm Comment from: Bizlaw

It was only a matter of time before app prices moved up somewhat anyway. As more original apps rather than ports of old Atari games become the norm, developers will expect to make some money at it.

The great thing is that iPhone apps should be significantly less than most other software due to the distribution system. No CDs to press, boxes to design and pay for, shipping, etc.

Jul 02, 09 - 02:06 pm Comment from: alansky

Clearly the iPhone App Store is, in its own way, just as big a game changer as the iPhone itself. Talk about a win-win situation!

It's good to see iPhone users supporting serious apps that cost more than a buck or two. Everybody enjoys feeling like a kid in a candy store, but expecting every app to be this cheap ultimately prevents the iPhone's enormous potential from being fully realized. Right now it looks like the sky's the limit.

Jul 02, 09 - 02:25 pm Comment from: Cubert

If you told me 3 years ago that in just 2 years time you would be able to buy an app for a phone for $.99 that could listen to music and then tell you who the artist is and the name of the song (Shazam), I would have told you that you were crazy.

Amazing technology at amazingly low prices.

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