Apple iPhone Apps thru App Store
Apple’s recent attempts to convince developers to charge more for the apps that they try to distribute through the app store seems to have fallen on deaf ears: a recent poll suggests that over 71% of apps developed for distribution through the app store will be available completely for free.
Further bad news for Apple from the same survey includes the conclusion drawn analyst Gene Munster (of Piper Jaffray) that the average cost of those apps for which a charge will be made will only be $2.29. This is a far cry from the $10 per app that Apple mentioned in the keynote speech and which, clearly, it was hoping for.
The reason for Apple’s urgency with regards to the price charged in the app store is fairly obvious: their revenue model revolves purely on a cut of 30% of the revenue made from those apps sold. Even the marketing boys at Apple realize that 30% of nothing is still nothing. In return Apple provide the infrastructure of the app store and provide the means to distribute to the paying customer.
So a slight loss may be on the cards if Apple forges ahead with the concept of the app store as it is. This should not worry Apple too much and even Munster doubts that the free apps will hurt the overall benefit.
