8

Creating Paid and Premium Apps

WHAT'S IN THIS CHAPTER?

  • Learning how to decide on lower or higher priced paid apps
  • Thinking about paid apps using the paid app mentality
  • Discovering the higher value of a practical app versus an entertainment app
  • Learning about the main risks and rewards involved in paid apps
  • Learning how to succeed in putting together any paid app
  • Understanding ad placement in your lite apps

As in any free market (well, generally free), the App Store has its trends and shifts in price, technology, store rules, and app features. Because it is relatively new, there are bound to be more subtle and not-so-subtle changes that affect the entire balance of app diversity. For example, the App Store in its infancy saw paid apps come out relatively high-priced, then rapidly fall until today the average price of a paid app is just around $2, with most apps either free or at $0.99.

A few interesting trends are now emerging as dominant themes in the App Store. One is the relatively large shift to the freemium model, which was examined in detail in Chapter 7. Another is the dominating use of in-app purchases as alternative revenue in both free and paid apps. And a third is more subtle, but still present. It's the confidence in the market that customers are willing to pay for quality.

Though the beginning of the App Store saw a rush to undercut and be competitive, many developers are now settling into a comfortable premium price point, and supporting it with in-app purchases. ...

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