Expensive Apps Will Ruin Microsoft's Windows Marketplace (
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News Analyis: Microsoft is saying that its Windows Marketplace for Mobile store should feature applications that are more expensive than those offered in competing stores. That's a problem both for the software giant and developers. Developers might like the idea of making more money from their mobile applications, However, the Apple App Store has already set the price point with its 99 cent applications. It's hard to see how Microsoft's plan to sell applications for $5 or $10 is a formula for success.Microsoft's mobile app store, Windows Marketplace for Mobile, hasn't
even offered a single application for mobile phones and already it's
causing a stir. Even worse, it's making Microsoft look foolish.
At a conference with developers this week,
Microsoft told those on-hand that the 99-cent application shouldn't
find its way to its store. The software giant believes that developers
are selling their apps too cheaply simply because some other stores
(yes, that means Apple's App Store) have created a culture that
dictates low prices.
"We would definitely want to promote that you make more money
selling applications than selling your application in a dollar store,"
Loke Uei, senior technical product manager for Microsofts Mobile
Developer Experience Team, told
mobile application developers earlier this week. "I know, 99 cents is
interestingyes, consumers like to pay 99 cents for applications.
"But 99 cents, come on, I think your app is worth more than that."
I hate to sound cynical, but I have a newsflash for you, Uei: no, they're not.
The app price debate
I find it extremely ironic that a company like Microsoft, with so
much cash in its coffers, is encouraging developers to charge as much
as possible for its applications. You would think that a company that
has been that successful would understand that application pricing
matters to both the developer's bottom line and Microsoft's.
Regardless, app pricing needs to be as cheap as possible. We're not
buying applications for the desktop that we will use often. We're not
buying Photoshop. We're buying simple applications that can be loaded
onto a mobile phone to provide a limited amount of usability.
For the most part, those apps are designed to satisfy a desire in a
moment. Do you want to find a local restaurant? Use Yelp to help you
out. Are you looking for some contact information for a couple friends?
The Facebook app is for you. Are you interested in updating your
Twitter stream? Use TweetDeck. Each of those apps can be downloaded
from Apple's App Store at no charge. Would anyone really be willing to
pay $10, $5, or even $1 for those programs? Of course not.
The same is true for all those paid apps, currently offered at 99
cents, that Microsoft hates. Market pricing is decided by the demand
for the product. What will end users be willing to pay to have a
particular app?
| | Reader Comments: Expensive Apps Will Ruin Microsoft's Windows Marketplace | | >>> Post your comment now!
| | 99 cents?Back in the day, my Windows Mobile had loads of free apps. They're still available at places like Handingo. My Windows PC currently has loads of... Posted At: 08-28-09 By: Tronist | | | | | | It's about value, not about priceIf a developer can deliver a phone app that users perceive to be worth $5, they'll buy it. Companies ranging from Starbucks to Lexus have built... Posted At: 08-28-09 By: Anon | | | | | | no charge for softwareI remember hearing from Apple early creators such as Wozniak that he thought software should be free.
Seems to me the Apple strategy is to fight... Posted At: 08-24-09 By: George | | | | | | AssumptionThere are two huge assumptions that Microsoft is making here:
1) that Windows Mobile/CE will even remain relevant in the market
2) it can command a... Posted At: 08-24-09 By: blarman | | | | | | 99 cents is less riskyI have bought a few apps from Apple for 99 cents just on a whim, because at that price, if I'm really disappointed with it, my lose is only the 99... Posted At: 08-24-09 By: Jim | | | | | | A user comment on this articleFor years Microsoft has been calling Apple's products over-priced. Now they have completely reversed themselves. Posted At: 08-24-09 By: Anonymous | | | | | | >>> Post your comment now! | | | | | |
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