The App Store, of course, has an immense range of business models and app prices. But when looking for patterns, three of them emerge.
As you saw in Chapter 3, 99-cent apps make up roughly 25 to 30 percent of the current available apps. This is a natural evolution of the App Store in that that's as low as you can go without going free: no more room to undercut your competition and remain paid. In fact, games (which are consistently in the top one or two categories) are averaging slightly above the 99-cent price, whereas the average price of an app in all categories is well over $2. Free apps make up roughly another 40 percent (and this looks to be climbing because of apps with in-app purchases). The remaining roughly one-third of the App Store is divided up with various “premium” app prices of $4.99 and upward.
Beginning with this chapter, the next three chapters take a look at these patterns in app pricing (free, freemium, and paid), the reasons behind pricing models, and how to develop your app to stay ahead of your competition in that price range. In addition, this particular chapter also houses many general principles and examples you will want to consider when creating an app in any price range, because many apps did not start out at their current price.
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