Editorial: iPad app prices are out of control and will kill us all
Apple trained us well with the iPhone. All those $0.99 apps, $1.99 apps, and the occasional $4.99 (or so) app, padded by plentiful free apps, and we laid down / rolled over every time the App Store whistled. Sure, we admit it, after a few months of conditioning we even spent $9.99 on a couple apps, but boy did we do our homework on those ones! They had to be the best, they had to either be the "greatest game ever," or a vital piece of productivity software we could never live without. But something, somewhere broke within and we were left powerless as the iPad at last made its way out of the box and popped open the App Store for the first time. These pricey apps (the average seems to be double the iPhone price) are dangerously expensive, and we'd like everybody involved to think twice before beating our wallet into submission with these $9.99 and $14.99 "snacks." Follow with us after the break as we break this down, won't you?
In the long run, it's perhaps difficult to expect $0.99 and $1.99 apps being the norm for the iPad. With less than a million devices on the market (compared to almost 70 million iPhones and iPod touches), there isn't the sort of scale yet that will make the iPad inherently a gold rush. Plus there's the real fact that the iPad requires a separate effort of development, with non-game apps requiring exponentially more UI elements and even games requiring new high-res versions of all graphics and iPad-specific controls. Even the iPhone's App Store was a little pricier in the beginning as first-to-market apps capitalized on the easy cash, so maybe we're just seeing a repeat.
But double the price? The typical offenders (like Real Racing HD) double the price of an iPhone app you might already own, but also require a separate purchase -- all for merely iPad-enhanced views. Even worse is something like Minigore HD, which is $4.99 (a new quasi-baseline for paid apps) for an "HD" version of a $0.99 / $1.99 game, and which, like most of the games we've seen, is merely a bump in resolution. Sure, you might get suckered in once or twice, but most of these don't have enhancements worthy of even a second purchase. Particularly at launch, we would've loved these heavy iPhone hitters to build "universal" (the little + icon on the purchasing button) versions of their software, adding value for people who have already bought in the form of a free iPad download, and adding incentive for folks who haven't. After all, what iPad owner doesn't have an iPhone? Developers might be feeling the pain of a second platform to develop for, but from a casual user's perspective they're going to spend maybe an hour or two a day with the iPad, but their whole day with their iPhone -- they don't ascribe value to mere quantity of pixels.
Our fear isn't just of a selfish "give us more apps for less money" sort, but we're also worried about what will happen to developers a couple months down the line -- these nerds need to stay happy so we can keep getting our regular fix, after all. The problem with charging too much for an application is that you can feel burned. Sure, you might blaze through your first half dozen iPad purchases, but once those iTunes Store receipts start piling up in the inbox, and then the credit card bill comes in the mail, we can see regret setting in. We're reminded of a little ditty by our boy Frank Herbert:
Not all of this is the fault of the developers: if Apple implemented a trial period it could really soften the blow (iPhone OS 4.0, perhaps?). The iPad could perfect the shareware model that almost has worked on the PC, and it wouldn't hurt to have trials on the iPhone either. We'd also like to see video and better resources in the app store itself for discerning the quality of an app. If $9.99 is the new norm, then we need some new tools to discern and evaluate. Some applications are really worth $9.99+, either for the brand (Scrabble comes to mind, as does Civilization Revolution), or for the sheer utility (Pages, or Brushes), but we hope and pray the market solves these prices down to something much more reasonable for the average not-a-life-changer app.
If anything, the App Store taught many people not only how to pay money for things, but also taught them how rewarding it could be. Developers could make millions with a well designed, useful, or entertaining app, and responded accordingly. It's one of Apple's most wild successes, in an era of stolen music and everything-on-the-web-is-free mentalities. We're not arguing against the power of paid, we just want it to continue in the best way possible: cheap.
In the long run, it's perhaps difficult to expect $0.99 and $1.99 apps being the norm for the iPad. With less than a million devices on the market (compared to almost 70 million iPhones and iPod touches), there isn't the sort of scale yet that will make the iPad inherently a gold rush. Plus there's the real fact that the iPad requires a separate effort of development, with non-game apps requiring exponentially more UI elements and even games requiring new high-res versions of all graphics and iPad-specific controls. Even the iPhone's App Store was a little pricier in the beginning as first-to-market apps capitalized on the easy cash, so maybe we're just seeing a repeat.
But double the price? The typical offenders (like Real Racing HD) double the price of an iPhone app you might already own, but also require a separate purchase -- all for merely iPad-enhanced views. Even worse is something like Minigore HD, which is $4.99 (a new quasi-baseline for paid apps) for an "HD" version of a $0.99 / $1.99 game, and which, like most of the games we've seen, is merely a bump in resolution. Sure, you might get suckered in once or twice, but most of these don't have enhancements worthy of even a second purchase. Particularly at launch, we would've loved these heavy iPhone hitters to build "universal" (the little + icon on the purchasing button) versions of their software, adding value for people who have already bought in the form of a free iPad download, and adding incentive for folks who haven't. After all, what iPad owner doesn't have an iPhone? Developers might be feeling the pain of a second platform to develop for, but from a casual user's perspective they're going to spend maybe an hour or two a day with the iPad, but their whole day with their iPhone -- they don't ascribe value to mere quantity of pixels.
Our fear isn't just of a selfish "give us more apps for less money" sort, but we're also worried about what will happen to developers a couple months down the line -- these nerds need to stay happy so we can keep getting our regular fix, after all. The problem with charging too much for an application is that you can feel burned. Sure, you might blaze through your first half dozen iPad purchases, but once those iTunes Store receipts start piling up in the inbox, and then the credit card bill comes in the mail, we can see regret setting in. We're reminded of a little ditty by our boy Frank Herbert:
We think it went something like that. Anyway, 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. You resent the app, you resent the developer, you resent yourself, and you even resent the iPad itself. Maybe the iPhone purchasing process has made you numb to these sort of feelings, but we found them rushing back with the iPad, and we're pretty sure these prices could make even the least frugal of App Store big spenders cringe.I must not regret. Regret is the App Store killer. Regret is the little-death that brings snackable obliteration. I will face my regret. I will not permit my significant other to look at the credit card bill and glare at me. And when she has gone away to play Scrabble on her iPhone I will turn the inner eye to see its iPad. Where the regret has gone there will be no more "HD" versions of apps I already own. Only I will remain.
Not all of this is the fault of the developers: if Apple implemented a trial period it could really soften the blow (iPhone OS 4.0, perhaps?). The iPad could perfect the shareware model that almost has worked on the PC, and it wouldn't hurt to have trials on the iPhone either. We'd also like to see video and better resources in the app store itself for discerning the quality of an app. If $9.99 is the new norm, then we need some new tools to discern and evaluate. Some applications are really worth $9.99+, either for the brand (Scrabble comes to mind, as does Civilization Revolution), or for the sheer utility (Pages, or Brushes), but we hope and pray the market solves these prices down to something much more reasonable for the average not-a-life-changer app.
If anything, the App Store taught many people not only how to pay money for things, but also taught them how rewarding it could be. Developers could make millions with a well designed, useful, or entertaining app, and responded accordingly. It's one of Apple's most wild successes, in an era of stolen music and everything-on-the-web-is-free mentalities. We're not arguing against the power of paid, we just want it to continue in the best way possible: cheap.






















SO we need a jailbreak. LOL
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. You resent the app, you resent the developer, you resent yourself, and you even resent the iPad itself.
Come on Engadget.. as if you didn't know that apple's primary source of income isn't the device itself, but the 30% off of the app price + all the monthly subscriptions etc.. it really is a gold rush, but mostly for apple.
(now I might get downranked for this, but) Apple is greedy!!
@gargle You got my +1. They are greedy, as with most things in their closed ecosystem way of doing things and making products. Not hating on them, perhaps it's just their strategy; however it deters me even further from the iPad, and I have owned all the iPhones, currently 3GS, and a 15" MBP.
TL;DR- find a new price point (which will ultimately happen)
@staticjethro
A few thoughts...
1) I agree we need a jailbreak, but as this post is in reference to app prices, i'm guessing your comment means that we need a jailbreak to pirate apps - not cool. Get some ethics.
2) Price wise, this is the same thing that happened when the initial app store came out. I think I (stupidly) paid $9.99 (or more!) for a NY Subway map application when it came out. And that app sucked. Once the app store is flooded, prices will drop, and we'll all be happier.
3) Calling Apple *greedy* is obnoxious. Every public company is governed by their board and shareholder with one mission: to make money. If you don't like supporting their greed, stop buying their products - problem solved eh?
@gargle
It's called a free market. You don't have to buy an app if you don't want to. Once new apps are competing with those first past the gate apps, the prices will drop. That's the reward for taking the risk with resources for being a first-mover and that's the price for anyone buying who has to be first on the block. The same applies to all app stores. Developers charge what the market will bear. They have to make a living too.
Apple makes much more money on hardware than the 30% cut on music and apps. That's why Apple doesn't set a baseline price and why most apps are still free. Their gross profit on hardware is in the range of 25-30%.
@staticjethro
In related news... the HP Slate runs Windows 7
When was the last time you saw a Windows program for 99 cents?
@(Unverified) jailbreak for the win! If the app is really great, and I use it a lot I will eventually buy it but since you can not get a demo of many of the great apps(just scaled down versions) I don't see the harm in torrenting them iWarez
@Michael Scrip
If they are, like many of these apps, glorified widgets, we can get them online for free in the form of a flash app or maybe in Adobe AIR, heck maybe even Silverlight.
Other than that, most Windows programs fall either as open-source and freeware, like Firefox or Google Earth, or professional programs, like Photoshop or Office, that actually commands the price they set.
@gargle I understand in a way what you are saying but apple doesn't set the prices on apps so greed doesn't even play on this topic. Also I would like to see your source (if u even have one) that apple makes more money off the 30% than they do the device.
@gargle do you not frequent engadget? its almost an automatic highest ranked if you talk shit about apple
@gargle
none of my friends believed me when I told them Apple is a greedy company!!
@LAY
Not mention having to pay extra to do something as simple as printing. Don't get why people accept being nickle and dimed for every little thing from adaptors to basic functionality.
Moving forward in certain areas of technology but at the expense of backwards in many others that have been standard for a very long time.
Leaving stuff out just so it can be added and sold to us as somehting new to justify keeping the price inflated is not in the consumers favor yet people are still lining up.. don't get it.
Lemmings!!!
@staticjethro Does no one remember how expensive apps were when the App Store first opened? Most big name games were 4.99-9.99 (Tetris, Super Monkey Ball, Cro-Mag Rally, Galcon, etc), and then as more apps got out the door, fierce competition drove prices on those same games down to 0.99-4.99.
Regardless, Here's a look at where a brand name, new release game fits into the grand scheme of things:
Xbox360/PS3/Wii: 30-60$
Windows/Mac: 20-50$
PSP/DS: 20-35$
iPad: 5-15$
iPhone/iPod Touch: 1-5$
Cue fart app/bargain bin/no button comments...Now! ;)
@gargle
Maybe so. But then which company isn't greedy? Everyone is out there to make money.
But, eventually, the market will settle down. I remember seeing $9.99 games for the iphone when the App store was new. Now nothing is ever more than 2 or 5 bucks. It's the nature of any new system. I really don't think the high prices for the ipad apps are sustainable.
@Michael Scrip
very good point,
but you also need to remember with the exception of gaming, you can can get almost any kind of program on windows for free. of course for some premium programs you'll need to pony up some cash
@Michael Scrip
Windows apps give you a lot more options and as others have said, there is an enormous amount of free USEFUL software for Windows -- and Mac for that matter. Most free apps on the App Store aren't terribly useful, and the main category of paid apps (games) are available for free on any PC/Mac with Flash with similar levels of quality, both in terms of visuals and fun factor.
@The Advanced Kind
Wow, you EVEN resent the iPad(and by extension, Apple???
Imagine that, resenting the company that sold you the heftily priced and locked-in device, and the overpriced app! Ridiculous!!!
It's hilarious that you would resent YOURSELF before you would resent the aholes who stole your moola.
@Michael Scrip I can't remember the last time I paid for a weather app on my PC. Oh wait... those are free desktop widgets.
And 90% of the iPhone games have Flashed based equivalents (most of them copied from those existing Flash games) that you can play for free on a PC. Hence the "real" reason Flash does not exist on Apple's new brand of locked-OS.
@hockey4life0099
True... the Windows platform has much more software available.
So now the battle will be between the iTunes App Store and Source Forge... let the games begin!
@staticjethro
Agreed.
Screw over the developers that put their time into making apps!
@gargle Apple makes plenty on the initial markup of all of their products, which is why they can have such a small share of the computer market in the world and have such a high market cap and trade value. Of course they make plenty on that 30%, but so does every other industry. An example would be printers. You can buy a printer now for 29.99 but the color ink cartridge alone will cost you 32.99. Apple is not any more greedy than any other company in America that invests in the idea of capitalism. It's unfortunate this hinders the development of technology.
@Anatidae -- "And 90% of the iPhone games have Flashed based equivalents (most of them copied from those existing Flash games) that you can play for free on a PC."
This is true. But as a game developer, when you make a Flash game and submit it to a site like Kongregate.com... you get fractions of pennies when someone comes to that site and plays your game.
Or, you can sell a game for $1.99 in the Apple App Store and keep 70% of that money.
We've all heard stories of iPhone developers making some serious money... but I've never heard of a Flash developer striking it rich... and there are hundreds of millions of computers that can use Flash.
I can't explain why the Apple App Store is such a success, or why people spend money on silly iPhone and iPad games... but they do. And it's not just games... there are tons of iPhone apps that make use of GPS... that other Flash apps just can't do on a PC.
I don't think the HP Slate is gonna make all those developers run back to Flash.
@gargle
Have you ever looked at Apple's financial results? You clearly don't, as all revenue from the iTunes combined (music, apps, movies etc) in 4th Qtr 09 was less than 13% of their total revenue. Something like 1.6 billion of the 15.7B reported. Clearly this is not the bulk of their pofit. The hardware is where they make their money.
Thanks for spewing clueless drivel about Apple's revenue stream.
@Michael Scrip
Never.
But there are thousands of windows apps I can download for free...as well as pretty much every one I have ever bought already.
@jr78
No one has to pay for printing. There's a ton of free printing apps, and I have no doubt that it will be there in iPhone OS 4 as a system wide feature, considering how much apple is pushing desktop publishing apps for the ipad. Do some research before posting.
@Michael Scrip I have been able to find a freeware/opensource version of almost anything(except games) I've wanted on windows, unless it was already installed in the system. That's the benefits of having a full fledged OS that has an open development system.
@staticjethro Agree, then when that happens, apple will find a way to block our itunes id, because we jailbreak our ipad... such a merciless company. Make the price of the apps lower... And that's why for this moment, I'm just picking those non-paid ipad apps: http://bit.ly/top-apps-for-ipad
@THJ
You didn't just compare games released for the Xbox, PS3, Wii, PC, PSP and DS to iPad games did you? Seriously, that is a lame comparison. There is nothing remotely close between a full fledged game on a platform vs what is available through iTunes. The very best games on iTunes are remakes of games that are 10+ years old on these other platforms.
"I must not regret. Regret is the App Store killer. Regret is the little-death that brings snackable obliteration."
Earthworm Jim reference?
@Xtole Lemmings? Is that on the iPad? Because I might throw up on one and smash it if it is.
@gargle
a big company being greedy?......nah
@jr78 Lol! Imagine........2012, Toyota releases ultralight* hybred vehicals.........*(seatbelts, airbags, headlights and flashers and much more available for you at the Parts Store!)......hmmmmm, sent frm iPhone in a tacoma.........
@avinash240 -- "I have been able to find a freeware/opensource version of almost anything(except games) I've wanted on windows, unless it was already installed in the system. That's the benefits of having a full fledged OS that has an open development system."
I'm a Windows user... and I know all about open-source Windows programs. I use them every day.
But does that automatically make the HP Slate a better tablet for the majority of users?
There are tons of apps to write little notes on an iPhone or iPad... is Windows Notepad better than all of them?
Is saving "shoppinglist.txt" in "My Documents" easier than saving a note in an iPhone app?
@gargle In the end Apple is still a company, and like most companies their goal is to make money.
@DirtyVegas
That doesn't justify moneygrabbing pal, they just strike me as lazy, the best thing about apples devices are the pieces of software that are developed by someone else.
@THJ
I'm sorry...are you comparing AAA titles on the main consoles with the casual gaming you'll do on the iPad? Have you ever heard of Xbox Live? Playstation Network? You are aware they sell the same sort of "casual" games you'll get on the iPad for the same or cheaper than the new iPad prices?
Call me when Call Of Duty 4 runs at at least 720p res on an iPad.
@bjsguess
Assassin's Creed 2 and Mirror's Edge are 10+ years old? Didn't think so.
@THJ
A lot of simple stuff for proper computers is just free.
Then there's all of that stuff on the normal web that you can browse even on Linux with a proper flash plugin.
A lot of the rest has more to it for the pricetag. Something simple that you might see in the Apple store is likely to be bundled 4 or 5 at a time for the sort of $20 pricetag you might see for a PC or a cheap console game.
If you tried to sell an "app" for a non-phone platform, people would ask you "where did the rest of it go".
@Michael Scrip There are tens of thousand of apps that are free on windows, its called freeware.
@choufleur47 -- "There are tens of thousand of apps that are free on windows, its called freeware."
It's not the number of Windows apps or how much they cost.
It's that there are 1 billion Windows computers already out there... so why is the HP Slate gonna cause a surge in Windows app downloads? Have people been dying to run Filezilla on a touchscreen? The HP Slate offers nothing new compared to the billion other Windows PCs... just the touchscreen, which may or may not enhance the experience.
The iPhone and iPad are relatively new platforms... and people like to download apps that are specifically designed for those devices.
Like I said before... I can't explain why the Apple App Store is such a success, or why people spend money on silly iPhone and iPad apps... but they do.
In contrast... I can't imagine download.com getting more visitors because of the HP Slate.
@Canucker
No testie, no buyie.
Simplz.
@gargle You clearly does not have an iPhone Developer account, as you would then know that Apple has not once mentioned to developers how to price their iPad apps! They might even not 'like' the 'high' prices, as that could slow the huge download numbers...!
@bjsguess Yes, yes I did.
@Tes Yes.
@gargle Of course Apple is greedy, any company worth it's salt is going to be greedy. Who can blame them for wanting as much money as possible. This isn't to say that they are justified in charging double for iPad apps, but rather that they're out to make a profit. I'll just wait until it's properly Jailbroken before I consider buying one.
@(Unverified)
A lot of people pirate apps just so they can try them out and then buy them if they're worth it. And that is even more useful now, because the higher prices are even more risky.
@LAY "most Windows programs fall either as open-source and freeware, like Firefox or Google Earth, or professional programs, like Photoshop or Office that actually commands the price they set"
O RLY?
Sounds like *someone* doesn't know much about "most Windows programs."
@The Advanced Kind
resentment leads to hate, and hate, as we all know it, leads to the... DARKSIDE.