So it sounds like his issue is more with the way Apple promotes apps versus an issue with competition among devs. IMHO, the best apps, regardless of price should rise to the top, and expensive apps aren't necessarily the best - "I Am Rich" as my case in point. If the best apps are free, that promotes competition and gives incentive for the pay-for apps to improve. Wins all around.

I think buyers should understand how apps are rated and promoted in the store, but I'm against developers trying to exploit the system just so they can charge more, which is the ulterior motive I suspect is behind Craig's complaint.

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Perhaps this will clear up some of the confusion: http://www.improvetheappstore.com

Basically one of the major concerns that many developers have is that the current ranking system which is based primarily on download count, tends to drive app prices to the $0.99 mark (for reasons explained in the developer blog posts from the link above).

We personally have hard data to back this up for our apps. Instead of the current method, many developers would like to see the rankings driven by a number of other factors, including actual app revenue. That way the rankings are not skew disproportionately in favor of $0.99 apps. As Craig put it: "The thing we're hoping for is a way to rise above the competition when we do our job well, not just when we have the lowest price."

iTunes placement (either featured or top 100 lists) is the single biggest factor in driving app sales, it out performs reviews on sites like this, and others, by a long shot. External marketing $ are extremely hard to manage under this environment, it's a razor thin line between return and financial loss, for even relatively successful apps.

Of course there are other things we'd like to see improved, but it's safe to say that this is probably the most urgent, and one which I think will have a dramatic effect on the store for the better.

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Layton,

Thanks for the clarification - I especially liked your post on "The Hack Store." The big issue it seems is bigger than just the $0.99 apps getting on the Top 100 list - rather the commoditization of software as a whole. It's happening everywhere - not just the App Store.

You mentioned that users would be reluctant to shell out $5, $10, or $15 for an app they can test out - and I agree. But I contrast that with David Frampton's claim of $15 life changing apps - where are they?

A mechanism I would suggest (baring demos) is a way for consumers to return software. It seems like a radical idea (back-end support and enforcement notwithstanding), but that would provide a better mechanism to measure app attach rates (by measuring how sticky they are, which is an attempt to measure utility) and true popularity independent of price. You'd probably find a lot of the $1 apps are one-use-wonders, quickly forgotten.

Otherwise, devs will have to adapt, change the strategy of application development - like the rapid-update ideas suggested in the blog.

Prices will go to $1 regardless - it's a natural market force. The Top 100 list just accelerates it. But, as the App Store and iPod/iPhone platforms mature, you'll see some of those $15 stars begin to shine.

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The real issue is that the market has not demanded $29 apps yet. There may be developers wanting to make them, but the App store has only been in place 6 months. Devs need to prove to buyers that they NEED $29 apps.

I believe there is place for them, things like encyclopedias with lots of built-in professional content, or complex apps. But the iPhone really discourages large apps by design. People need to work up to it. Big ticket software like Photoshop and Autocad and Office all started with much more reasonable prices in a more crowded market. As the market grew up and those companies demonstrated features people wanted they got to charge more.

iPhone is new.. developer cred is reset to $.99. Some of those guys will be the next $29 app in few years, but EVERYBODY has an equal shot at it!! Many of these devs don't "get out of bed" for multiple times what the up-and-comers (living in their parent's basement) parent's make. iPhone is an "emerging" market, adjust your pricing accordingly and spend your experience building up good marketing so you're still around when prices go up. Develop the app people will buy NOW and grow it as more people get hooked.

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I totally agree. The market (App Store) is still very immature. As devs begin marketing activities, audience segmentation, profiling, etc., they'll be able to reach those inclined to buy their $15 products. The Top 100 list is just channel noise that any product marketer would have to cut through.

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Ok, the one thing Apple could do, that would solve a lot of this, is allowing demos. I don't see why it would be so hard to allow a free (time or feature limited) demo on the same page as the full product. Then you could decide if it was worth the extra money and probably wouldn't even buy a lot of the crap you pay $.99 for. In the long run, Apple wouldn't lose anything they are making from these 'impulse' buys.

People buy $.99 apps because they don't really need the functionality it provides or care that much about the title and can afford to waste $1 to try it out. I have tons of these that I've bought and barely use, but it sure is cool to have them. ;-)

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