Apple’s killing cocky Microsoft 99-cents at a time

“Leave it to a company as cocky as Microsoft to dictate prices in a sector over which it has no control,” Rick Aristotle Munarriz writes for The Motley Fool.

“The software giant wants mobile software developers to forget the $0.99 price point that Apple’s App Store is championing, as it gears up for the fall launch of its Windows Marketplace for Mobile,” Munarriz writes.

MacDailyNews Take: Is Apple’s App Store really “championing” the 99-cent price point or did prices just gravitate to that base point? Plenty of apps are free (like ours) and plenty of others cost – and are worth – more than 99-cents, too. Apple provides the App Store, the developers set their own prices.

Munarriz continues, “‘You make more money selling applications than selling your application in a dollar store,’ Loke Uei Tan — a member of Microsoft’s Mobile Developer Experience team — told developers this week. ‘Ninety-nine cents? Come on. I think your app is worth more than that.’ He may be right, but that doesn’t matter.”

“Kidding developers about the notion of jacking up prices is preposterous,” Munarriz writes. “Microsoft may not see what it likes when it peers into Apple’s App Store, but it’s really only looking at the grim reality of software pricing’s future.”

Full article here.

MacDailyNews Take: Since Apple makes the bulk of their money on hardware, they can continue to drive down software prices (look at what they did to MSFT on OS pricing) until Microsoft’s look even more outrageous than they do now (if that’s even possible). Microsoft will never be able to make up that loss with mice and obscenely faulty Xbox units (Xbox 360 failure rate is 54.2%). Apple’s turning Microsoft’s gold into lead.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

39 Comments

  1. This is a hoot. Is it not the developer who sets the price of his app?
    Furthermore where and what is the hardware units in consumer hands that this pricier software will be used on?
    Seriously M$ is losing it’s sanity.

  2. What a ridiculous assertion that Apple is “championing” 99¢ apps. Some developers have made a decision price their apps at that low prices hopes to gain high volume acceptance, but their a plenty of pricier apps. Apple, would actually benefit if the same quantity of apps were purchased at higher prices.

  3. tz writes, “Is it not the developer who sets the price of his app?” Exactly so. The only thing Apple sets is its “cut”.

    What Apple has created is a free market. Bejeweled at $2.99 is not worth it to me (though I’d grab it at $.99), but ooTunes *is* worth $3.99 to me to give me access to some overseas radio streams. That Pandora and Bloomberg are free is just a gift.

  4. I paid $100 for TomTom. I could have bought 100 99 cent apps instead but I bought what I wanted. Show me the value – and I’ll show you the money. I loaded it on 4 iPhones so now I’m down to $25 per.

  5. I also agree that the current pricing for the typical app is way below their true value. I have no problem paying more for quality software and support the dev who created said software. Hopefully things will change and they get what they’re entitled too. Because without them the iPhone is a dead platform.

  6. Even if those X-Boxes were 100% defect-free and perfect (as hardware) in every way, they’d still be losing MS money. There isn’t a single MS hardware product (other than perhaps mice and keyboards) that is NOT a loss leader for some other software product. MS is a software company, and their X-Box hardware is sold so that they can make money on licensing for games (for third-party developers) and on their own games division. If Apple’s App Store continues to encourage game developers to lower the pricing and expand the market, Apple won’t care about that, developers will for sure see benefits from greater volume, and MS will suffer, watching their margins evaporate.

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