App developer raises price of $2.99 iPhone app to $39.99 in response to complaints about high prices
An iPhone development company recently raised the price of a $2.99 iPhone app to $39.99 in response to complaints about high prices
By Yoni Heisler on Sun, 10/11/09 - 11:54pm.
In response to customer complaints that its prices are too high, Schiau Studios raised the price this past weekend of their Alchemize app from $2.99 all the way up to $39.99, making it the most expensive game on the iTunes App Store for a brief period. The price change is only temporary (and all the proceeds go to charity), but the price change is an interesting response to a vocal number of iPhone owners who for some reason seem to believe that everything on the iTunes App Store should be free, or at least fit into their pre-conceived notions of what price range an app should fit into.
The move by Schiau Studios won't earn them any more sales, though perhaps some free publicity, but its decision to raise the price of Alchemize highlights an interesting tug of war between developers who are trying to make some money with iPhone apps and the end users who often complain that a $3 app is too expensive.
Early last week, Newsweek published an article discussing how the notion of an iTunes App Store that shrouds developers with riches is more of a mirage than anything else. In response, some have praised Newsweek's varied take on the app store while others have pointed out that the iTunes App Store is a business just like any other, and that financial success is by no means a guarantee.
On a related note, Tweetie 2 for the iPhone hit the app store this past Friday, and thus far, reviews of the popular Twitter app have been universally positive. But in the week or 2 preceding the release of Tweetie 2, some iPhone users complained that the app wouldn't be offered as a free upgrade for users who purchased the first iteration of Tweetie. Instead, Tweetie 2 would be priced at $2.99 with the reasoning being that the app was completely re-written from the ground up and offers users a bevy of new features and functionality. Whether or not Tweetie 2 is worth the $2.99 isn't entirely relevant to the discussion (sidenote : I believe it definitely is), but what is important is the growing sentiment that a $3 app for a device that costs $99 to purchase (at the very minimum) and is subject to high monthly fees is a rip off.
Now far be it from me to dictate which apps are priced too high and which are priced appropriately, but I can't figure out why users are so passionate about criticizing developers when all they need to do in order to protest it to simply not purchase an app. A dearth of sales is the best way to make it clear than an app is either not well done, or is in dire need of a price cut.
The above-mentioned move by Schiau Studios was, in my opinion, a nice reminder of how good we iPhone users have it. Many amazing apps can be found for under $3, and a good number of incredible apps are actually free. I mean, it wasn't too long ago that the entire notion of a well-rounded mobile app store was a pipe dream, and basic and shoddy apps on other platforms commanded much higher asking prices.
So instead of complaining about an "expensive" app, iPhone users would be better served by simply speaking with their wallets instead of acting like they're somehow owed something by developers who often times put in hundreds of hours worth of blood, sweat, and tears into an app in the mere hopes that it catches on and becomes a hit.
Again, selling Alchemize for $39.99 won't generate a lot of sales, but the symbolic move should help serve as a reminder that in the grand scheme of things, $2.99 for an app is nothing to scoff at.
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- Yoni Heisler is a technology writer and Mac nerd who's been using Apple products for well over 18 years. He actively covers a wide variety of Apple topics, from legal news and rumors to current events and even Apple related comedy and history. When not writing about Apple, he enjoys basketball, music, and writing in the third person. Got an idea, comment or suggestions? You can reach him at iOnApple1@gmail.com.
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Agreed
My kids use an iPod touch instead of a play station portable or a game boy...it is a great game platform and for the most part the games they play are free or between 0.99 and 9.99. It is actually an incredible bargin especially if you get a refurb iPod from Apple. People who are complaining that an app is 2.99 have their heads in the sand. IMHO...It is in all of our interest to try and make the current pricing work for developers because it certainly works for consumers.
How soon we forget...
I remember thinking a $15 for a Palm game was a steal. If I remember right, I paid $20 for Bejeweled. Some may stop complaining others will continue, but what a shame. A few dollars is nothing compared to what mobile users have had to pay in the past.
Link to the newsweek article?
Is there some reason you don't link to the Newsweek article you mention? Not a single link anywhere in this post; I find that odd.
I don't think all apps
I don't think all apps should be free. I've paid for many apps. However, many of the for-pay apps are so poorly done they SHOULD be free. Some of the graphics on games are beyond amateurish, looking like they're intended for infants and toddlers rather than adults. Yes, there are some people who think all game apps should be free. But there are also developers who think their crappy games are worth money.
Where's try before you buy?
Even 2.99 is to much for something you'll only use once and there is a lot of garbage around.
Agreed +1
We have it so good. I remember ot only the higher prices but lesser quality of apps for my Handpsring, Palm/Treo, Nokia and Siemens phones. And an AppStore that makes it easy to get them? With a reasonably informative user community? We *are* spoiled. Anyone who complains about $2.99 is in serious need of psychological adjustment.
Sometimes saying it's overpriced is just saying it's overpriced
Take a look at all the comments. It sounds a bit like the developer is being a bit of a jerk to them. For example, it doesn't say it requires OS 3.0 in the requirements, people bought it with the touch without 3.0, and the developer then added, "Upgrade to 3.0" in the app description. Look at the way it's written, it looks personal, not professional.
That's not right. The developer should have written back explaining that the app needs 3.0 for whatever reason, offered a refund and then make it simple and clear in the requirements.
It also looks like the app has been priced at .99, 2.99, 4.99, 6.99, 9.99, and now 39.99. Also someone reported a glitch where they are continuously asked to buy the app for .99 when they already bought it at 2.99. These kinds of price games are very likely to bring about complaints.
Additionally, saying a game is worth a certain price or not is subjective and relative to what else is out there. It's not necessarily "these guys our gouging us" whining. If you look at the comments, very few mention it being over-priced, but the developer seems to have a knee-jerk reaction to any negative criticism.
Now there may be more going on in terms of emails back and forth between the customers and the developer or other communications, but on the iTunes store page for this app, the developer comes across as someone I wouldn't want to buy from.
On the app page, it says that only 33% of sales will go to charity. This is different from what the article states "all sales".
The bottom line is that this developer sounds very immature, which is unfortunate. What the developer needs to understand is that if people are stating in reviews that $2.99 is too high, than it just may in fact be too high compared to the competition.
If pricing at .99, because of the fierce competition isn't going to yield the return you're looking for, then consider another line of work instead of...whining about it.
And of course competition is going to be fierce. You've got tens of millions...soon to be over a hundred million potential customers. You sell an app for a dollar, and it doesn't take that large of a percentage of people to buy it before you get a pretty significant return. This is why a lot of developers are pricing at .99 or even free, knowing that soon the market will be over a hundred million, and if they can get 1% of that (through sales/ads), they'll get a million dollars.
Apps are tough
Devs aren't whining - they're starving. There is going to be a huge crash in the market of iPhone apps. Most devs out there are not making money on their apps. Those apps required deep skill, and tremendous time and effort to write and publish. .99 is too cheap to make any money unless your app is in the top 100 - otherwise nobody buys it in great enough numbers to break even. Pretty soon the market will stabilize because many devs will be driven out, and the remaining apps will be produced by the big companies with deep pockets. They'll price at 9.99 and the .99-3.99 market will shrivel except for lame flash games.
In related news...
In related news, developer "Schiau Studios", notes that sales have inexplicably dropped to zero. The developer doesn't understand this sudden boycott and backlash against their product. The owner claims "I was only trying to teach those whiners... er... customers a lesson.".
Consumers have the right to
Consumers have the right to criticize and complain. I agree that the best most efficient way to protest against high prices is to simply not make the purchase, but that doesn't mean consumers can't still voice their opinions regarding the prices.
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