No, no, no, no... Any back room analyst worth their salt can interpret this correctly. Lower app prices means a precipitous drop in iOS device sales, hence the need to slash prices. Apple is doomed!

That's incredible. I wouldn't have guessed it was by that much.

"Price drops on Apple's App Store can be an effective tool used to gain interest and boost revenue in the short term, a new study has found."

If there's an app or game that I want, and it looks good, it makes no difference to me if it's 99 cents or $1.99 or $2.99 or whatever. The only apps I will specifically wait for price drops on are more expensive apps, like when something drops from $50 to $25 for a short period of time. That will definitely influence my decision. An app going from $1.99 to 99 cents will not. If it wasn't attractive at $1.99, 99 cents won't make it any more attractive.

Not mentioned here is the fact that there are many sites and apps dedicated to tracking price drops. The additional attention these apps receive has to be a contributing factor. I get a daily e-mail on app price drops to watch for apps that change to free, but I do find myself once in awhile purchasing an app that comes up as a price drop because I am now aware of its existence.

Quote:

Originally Posted by AppleInsider 

...

In its latest report, mobile app analytics firm Distimo took a look at the effect of price changes on mobile software. Their data found that a total of 850 unique iPhone applications, and 930 iPad applications, changed their price at least once in the month of December.

The data collected by Distimo found that price changes have a much greater effect on iPhone software than iPad. For example, downloads of iPhone apps increased by 1,665 percent five days after a price cut, while iPad software downloads grew by 871 percent.

Distimo also found that price cuts resulted in revenue growth rates continuing to grow the longer than the application was on sale. For example, revenue for an iPhone app increased 137 percent five days after a price drop, and 159 percent a full week after the discount was enacted.

I agree and accept that a price cut would and should increase sales.

I don't understand the two sets of numbers though. 1,665 and 871 percent versus 137 and 159 percent.

Lower price increases demand. I sense the beginnings of a theory here...

Quote:

Originally Posted by Smiles77 

That's incredible. I wouldn't have guessed it was by that much.

Mine costs zero. The demand's infinite....

Really? Things on sale sell better than when they're not. What a revelation.

I added features to my app and then raised the price. I'm selling just as much as I did before and making more money. But, I'll have to see how it goes. The app was just released so I might be seeing a bump due to that.

What's tragic is how good apps which take freelancers a lot of time to develop can barely sell for the price of a cheap cup of coffee. It's also a shame the market gets flooded with apps built off of java based build for all device sdk's. Not difficult to see when you've downloaded one of those. The app market will soon be filled with apps that have drag and drop elements that someone built using a web browser. I really wish Apple would limit apps coded using to Objective C or C.