iPhone App Pricing and Revenue Models

Pricing an iPhone app can be a very strategic process.the app, they definitely will create some sort of buzz
This article goes over the price points and revenueif the iPhone app is a quality one.
models that are commonly used for iPhone apps.$7.99 to $9.99 "Leader" Pricing Model
$0.99 - $1.99 "Impulse" Pricing ModelTo place an application in this price range your
About half of the iPhone apps in the Top 100 costapplication basically has to be far superior than all
$0.99 and there is a direct reason for this. It isother applications in its category. It must do
because this is the price in which users are mostsomething, and do something better than any other
likely to make impulsive purchases for an applicationapplication by a long shot. We recommend this price
that looks appealing. We recommend using this modelrange for large software companies or establish
when your application simply "nice to have". TheseiPhone development companies.
are applications are are mildly entertaining, solve aOver $10 "Specialized" Pricing Model
very basic problem, and were easy to create. ButThis pricing model is only recommended for individuals
also keep in mind that low priced iPhone apps needor iPhone development companies that have an
to be of high quality to gain consumer interest.expertise in an industry and really have an
$4.99 - $6.99 "Premium" Pricing Modelunderstanding of how much their target market is
Most of the applications in this price range are gameswilling to pay for an iPhone application. This model
that provide the user and experience that aren't ablealso can be used for software companies as an
to get with lower priced applications. Obviously, theextension of their already existing product. For
application is much more complex and of higherexample, if your company already has a solid
quality than lower priced iPhone apps. People oftencustomer base, you could consider creating an
pay top dollar for brilliant design or crystal-clearapplication at this price point and marketing it to your
intuitive graphics. This basically means thesealready in place customer base. These individuals
applications usually focus heavily on user interfacealready have a clear understanding of the value your
graphics, to give it a more professional feel.application will give them and are more adept to
Non=game apps that succeed at a higher price levelpurchase a higher priced iPhone app.
don't usually have a extremely unique use or highlyOverall, there is a lot that goes into pricing your
intensive design, they simply solve a problem betteriPhone app. We recommend that you do you
than any other applications. This price point is basicallyresearch and understand the advantages and
the premium price point. It is meant for applicationsdisadvantages when pricing your iPhone app. Price it
that are of higher value than the impulse apps.too low, and you could be missing out on serious
In addition, we recommend that any application pricedrevenue. Price it too high, and the same thing
over $4.99 should have a trial version to go alonghappens. The trick is to do it just right, and with the
with it. This will let users try out the application andhelp of this article we hope you have a clearer
help them make a decision of if the application isunderstanding of what goes into properly pricing an
worth the money. Even if people don't always buyiPhone application.