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 Software developers drop prices in Apple’s App Store

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iMacoo7
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PostSubject: Software developers drop prices in Apple’s App Store   Sat Aug 09, 2008 4:16 pm

"Sliding software prices have damped the halo effect many music and software companies expected from selling their products through Apple Inc.'s (AAPL) iPhone software store," Ben Charny reports for Dow Jones Newswires.

"Take, for example, game maker Jirbo Inc.," Charny reports. "The Los Angeles-based company thought it would have trouble getting customers to buy an iPhone version of its popular 'Break' video game, which it had wanted to launch for $2.99 on July 10. That's because it would be crowded in with 1,400 other titles, like 'Super Monkey Ball' and 'iPhoneHome,' some of which sell for as little as 99 cents."

Charny reports, "So on Monday, Jirbo did what many other iPhone software writers are doing: It dropped its price by two-thirds... [Software makers are ] finding competition so fierce that they're slashing prices. Over the last two weeks, prices on hundreds of programs were slashed," Charny reports.

Charny reports, "The price cuts also could put pressure on Apple. Although the Cupertino, Calif.-based company sees the App Store as a marketing tool - it believes the more software that's available, the more iPhones it can sell - the company still keeps 30% of every dollar spent on the download site. If revenue drop precipitously,the results may be more disappointing than initially expected on the business."
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