Underscore Price Dynamics

Marco Arment, about the app market and his new podcasts app, Overcast:

This is the real reason why Apple doesn’t care about upgrade pricing: there’s no demand from customers. The market has shown that free apps will be downloaded at least an order of magnitude more than paid-up-front apps, and smart use of in-app purchase in a free app is likely to make more money. […]

Paid-up-front iOS apps had a great run, but it’s over.

It’s a shame for us geeks, as we like it the other way around: paid up-front, with no other charges until a new major update.

I’ve paid hundreds of dollars on apps since the App Store’s inception. I despise in-app purchases like nothing else. When I’m looking for an app I consider useful, I always look for a better paid app before settling for a free one.

Call me crazy, but I want a good app, not a crappy one; if it benefits an independent developer or small studio, it’s even better.