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Apple pushing iPhone developers to charge for would-be free apps

Developers wishing to release software applications for the iPhone and iPod touch for free are being encouraged by Apple to charge a fee instead, AppleInsider has learned.

People familiar with the iPhone Developer Program initiated in March note that companies and individuals approved for the program are being assigned a liaison, or "development partner," who serves as a resource, offering advice and gathering feedback on plans for applications that will eventually be submitted to upcoming App Store for approval.

Those liaisons, who appear to be evangelists rather than technical contacts, aren't mandating that developers stick a price tag on their creations immediately. They are, however, suggesting that serious consideration be put into doing so "at some point."

Along the same lines, Apple will reportedly allow developers to submit more than one version of their application to the App Store, which will ship as part of iPhone Software v2.0. For instance, a full-featured version would be available at cost while a "lite" version would be provided as a free trial download to entice users to purchase the full version.

Apple's motives for the moves are clear. It will bear the cost of hosting, marketing and running the App Store in exchange for 30 percent of the revenues from each application sold through the service; developers get to keep the remaining 70 percent. That said, it had promised to allow developers to give away their applications if they so chose.

While not necessarily a big deal for iPhone owners who will receive the App Store for free and who can pick and choose applications at their will, Apple's aggressive push towards app pricing may serve as an added nuisance for iPod touch owners.

Since Apple does not account for sales of the touch-screen media player through subscription accounting like it does the iPhone, touch users will have to pay an initial fee just to update their devices to iPhone Software v2.0 in order to access the App Store.

151 Comments

kindredmac 18 Years · 153 comments

While I understand that Apple is a business IN A business to make money, I really think that if someone doesn't want to charge then they shouldn't have to.

Out of spite I would charge 1¢. Try slicing that up into a 30/70 share on a small run basis!

mbradley67 17 Years · 34 comments

I was already under the assumption that most of the apps would cost money anyways...

What's a good free app? the AIM client?
Games and everything will of course cost money.

I would be shocked if a high quantity of solid apps come out as free.

rot'napple 18 Years · 1839 comments

Quote:
Originally Posted by AppleInsider

Apple's motives for the moves are clear. It will bear the cost of hosting, marketing and running the App Store in exchange for 30 percent of the profits from each application sold through the service; developers get to keep the remaining 70 percent.

Makes one wonder why Steve Jobs even gave that as an option when "introducing" the app store at the SDK event. Now it looks as if less is offered.

If charging becomes a precedent for all apps, I hope there will be at least a Free 7 day trial or something. While these apps may not be the most expensive items in the world, I bet it would add up to a hefty sum if one went crazy getting all the apps they think they need to make their iPhone Premium.

hmurchison 24 Years · 11829 comments

I think Apple's doing the right thing on multiple levels. Financially- Apple are hosting these apps and they only require a 30% cut of sales. It does them no good to have to manage legions of Free apps that generate no revenue/profit yet consome resource thus becoming only a cost center.

Customer Satisfaction- Free apps imply "no" support. One of the things about paying for a product or service is the accountability aspect. If you've accepted my hard earned money I expect some sort of support.

Perhaps Apple should limit how many free apps a developer can offer and then levy a nominal charge for those that want to offer more.

pg4g 17 Years · 383 comments

Apple promised the option of Free Apps.

its part of my contract with them.

Therefore, everything I make will be free. I refuse to make costing apps at this point.