I've been a mobile device enthusiast since I was in junior high, starting off with my first Sharp Wizard electronic organizer, with a whopping 32KB of onboard memory and a tiny monochrome LCD. There was no third-party application support, and synchronizing data with a computer required you to buy a separate synchronizing cable that came with the appropriate software.
My progression through the PDA landscape through the next decade and a half included Palm OS-powered devices from Handspring and Sony; a long string of Windows CE (now Windows Mobile) Pocket PCs from the likes of HP, Compaq, Toshiba, Casio, and HTC; a trio of BlackBerries (the 7100T, 8700G, and the original Pearl); and finally the latest entry into the smartphone category, Apple's iPhone, both 2G and 3G variants.
With around 15 years of mobile device ownership under my belt, I've seen the evolution of the mobile application ecology shift gradually from individual websites advocating their favorite apps, to storefronts providing one-stop shopping for a particular device or range of devices (Handango being a prominent example, carrying Windows Mobile, Palm OS, Symbian, and BlackBerry applications), and now the proliferation of over-the-air solutions where users can purchase, download, and install apps directly on the device itself.
I've also seen a shift in consumer's attitudes towards various aspects of mobile applications, and a hot topic these days is price. Until recently, one of the largest groups of mobile app consumers was the mobile device enthusiast, who might typically be more inclined to pay a higher price for a mobile application they expect to use often enough. To use a specific example of a popular productivity application, Pocket Informant by WebIS has been around for over half a decade, and has garnered numerous awards and stellar reviews. It also costs $29.95 on Windows Mobile and $19.95 on the BlackBerry. I have used several revisions of Pocket Informant since around 2004, and I think it's a great application that was well worth what I paid for it. A sampling of some of the "Most Popular"** Windows Mobile and BlackBerry applications on Handango seems to reinforce this point of view; the least expensive Windows Mobile application in the platform's top 20 is a $14.95 on-screen keyboard, while on the Blackberry side, the cheapest is $12.99 for a three month subscription for service provided by the Weather Channel. At the high end, apps priced at $99.95 (WorldMate Live Gold for BlackBerry) and $159.95 (Nursing Central for Windows Mobile) are also in the top 20.
With the advent of the iPhone and Apple's decision to allow third-party developers to create and distribute their applications via the company's App Store, the mobile application market has grown by leaps and bounds via the previously untapped general consumer segment. This dramatic shift in the market has not gone as smoothly as some developers might like, however; these new customers bring with them a different attitude on what they think a mobile application is worth, and that attitude is causing veteran mobile application developers to change their own assumptions on how to succeed in an evolving market. Using the App Store's top app listings as a contrast to the examples used above, the most expensive of the top 20 paid applications (all categories) are $5.99. To find an application with a higher price, you have to go to #34 (Super Monkey Ball, at $7.99), and #49 (SimCity, $9.99). To reiterate, no paid application in the top 20 on Apple's App Store is priced as high as the least expensive of the top 20 Windows Mobile or BlackBerry apps.
Another example? The very same Pocket Informant, currently being ported to the iPhone by WebIS and targeted for a late January release. The iPhone version has many of the same (or comparable) features as the Windows Mobile version, but will be offered for less than half the price of its older sibling - $12.95. Now, I suppose one could argue that this is simply because the two have not yet achieved feature parity (the Windows Mobile version has more than eight years of development behind it, after all). My opinion? All you have to do is look at the top-seller lists: right now, the market is absolutely flooded with low-priced, free, or ad-supported apps, and developers are feeling pressured to lower the price of their apps in order to stay competitive. I'm certain that eventually, as the App Store matures and issues such as store acceptance criteria and storefront organization get hashed out, higher-quality (and higher-priced) applications will start to regain prominence. In the meantime, developers are relying on existing customers, word-of-mouth, massive advertising campaigns, and the holy grail of a mention on an Apple ad to generate sales in an effort to make up for lower prices.
** - I was unable to locate a "best-selling" listing at Handango to directly correlate to the listings on Apple's App Store. If anyone out there knows where such a listing may be found, you are more than welcome to e-mail a link to me.



