Entries in pricing (1)


why is app pricing so elastic?

At the end of January, Distimo released a report which I suspect many app developers found disturbing. Backed with substantial data and analysis, the report demonstrated that drops in app pricing resulted in substantial boosts in downloads. We're not talking a small jump here:

"When the price drops for iPhone apps, on average, cumulative downloads grow by 1,665 percent for five days following the decrease."

1,665%? That is a remarkable increase. (Fascinatingly, the comparable boost for iPad downloads is a mere 871%, which Distimo attributes to the higher price of iPads, and an associated lower price elasticity.)

Are app developers rapidly headed toward the problems of content creators, who can't seem to get paid for their work?

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