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Mobile App Economics in 2016 – Not Looking So Hot

15 pointsby rackformsabout 9 years ago
Just read: http:&#x2F;&#x2F;www.theverge.com&#x2F;2016&#x2F;3&#x2F;2&#x2F;11140928&#x2F;app-store-economy-apple-android-pixite-bankruptcy<p>Reminds me of my own situation and the action I look a few weeks back: Charge, more, like, <i>way</i> more, for my apps.<p>Example: I recently upped the price of my excellent podcast app (SkipCast) from Free to $24.00. The result: I&#x27;ve made more in the last 2 weeks than the first 6 months when I was at $2.99. Sure downloads are waaaay down, but each sale is worth so much more.<p>The argument is simple: as app developers we&#x27;re absolutely screwing ourselves by living in the delusion that what we&#x27;ll have enough volume to stay afloat at such low prices.<p>The core problem, as far as I see it, is the app store&#x27;s search system is incredibly inflexible when it comes to the top three spots, the only ones that have a prayer of making any money. Mix in that in some categories (including mine), there&#x27;s a feedback loop of the same app being perpetually featured and thus, the only one that get downloads, and we&#x27;ve got a recipe for disaster.<p>So, you do something else to set yourself apart: charge so much that if someone <i>does</i> scroll down far enough to see you, they&#x27;ll take pause and wonder why you cost so much.<p>Free is poison, and completely unsustainable for all but the luckiest.<p>It&#x27;s a complex issue but one thing I&#x27;m absolutely sure of: I&#x27;m sure as hell not giving my hard work away for $1.99 anymore. I may not make any money, but at least I&#x27;ll do down with dignity : )<p>*Small update for readability.

3 comments

dangabout 9 years ago
Posts without URLs get penalized, so you should submit the article and then add your text as a first comment in the thread.<p>Edit: actually it looks like the story was submitted at <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=11222681" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=11222681</a>. Posting your text as a comment there would be a good idea.
dotnetkowabout 9 years ago
Here here! I do the same for my line of fitness apps. $3.99 at the moment. The only way for consumers to begin to understand that the software they use everyday costs real money to build and maintain is for us to charge for it. I&#x27;ll be experimenting with higher prices later this year. Cheers!
10dpdabout 9 years ago
It sounds like your discussing your demand curve - <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Demand_curve" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Demand_curve</a>