The release of the Apple iPad has resulted in hundreds of thousands of sales and mostly positive reviews, but customers aren’t happy about how much they have to pay for applications.
The App Store went live last week with thousands of apps specifically designed for the iPad, many of them simply updates from their iPhone counterparts. But prices, which typically remain around $1 for the iPhone, have jumped significantly.
Application developers have also been accused of gold-mining by updating their relatively simple iPhone apps with a few new features then doubling the price while calling their app “new for the iPad”.
Some popular apps, such as Firemint’s Real Racing game, have doubled in price from $6 to $12 while the core elements of the app remain the same. Bloggers have also attacked certain games, such as Minigore HD, for updating apps with higher graphics standards and then jumping prices from under $1.19 to over $5.
Other app categories are similarly being affected. A popular organisation app, Things, costs $12.99 for the iPhone, but is a massive $23.99 for the iPad. Air Sharing, an app which allows users to hold different types of files on their gadget, cost $3.99 on the iPhone but jumps to $12.99 on the iPad – while still providing the same core functions.
The price of iPhone and iPad apps has been a controversial topic for some time as developers attempt to figure out how much customers are willing to pay. If the price is too low, programmers might be missing out on much-needed revenue, but if the price is too high, customers might be scared away.
Popular tech blog Engadget points out that when users buy an expensive app they feel doesn’t deliver on its promises, they tend to react as if they have wasted money on the gadget itself. “We’re pretty sure these prices could make even the least frugal of App Store big spenders cringe.”
“It’s hard to regret a $0.99 app. Even if you play with it for 15 minutes and then give up, you shrug your shoulders and say, “oh well, that was a nice bit of fun.” But with a $9.99 or $14.99 app, you really expect greatness. If the app doesn’t deliver (and trust us, most of the apps we’ve seen so far for the iPad aren’t worth half the price), you feel burned.”
The prices could be a problem for Apple, as applications are one of the main draw cards of the iPad as it lacks a number of other features rival tablets could provide.
However, it said in a release last week it has already recorded one million app downloads, with the average user downloading more than three apps on the first day of release, suggesting users are putting up with the high prices.
Keith Ahern, chief executive of development studio MoGeneration, also says the app problem is being slightly overblown.
“I think it’s more accurate to say the apps are relatively expensive but still very cheap. I think prices will drop over time, iPad only apps may command a premium for awhile.”
Marc Edwards, chief executive of development studio Bjango, also says iPad app prices are higher but that they will drop over time – just as they did with the iPad.
“Given the 300,000 unit first day, I’m not sure there’s much that will slow down the iPad. App prices are definitely higher than iPhone apps, but much lower than desktop computer app prices. I think it’s a decent balance, especially when you consider the extra functionality found in most iPad apps. I’d also expect the iPad app prices to drop over time, as the iPhone apps did.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
