Making Money With Technology

Apple Puts a Stake in the Ground for iPad App Pricing

January 29, 2010

  • Adrienne Szewczyk Adrienne Szewczyk

While the iPad is generating a myriad of opinions, one key item is being overlooked in Apple’s announcement: Apple’s iWork office applications will be available for $9.99 each for the iPad. While a reduction from the $79 desktop pricing, Apple is taking a stand to show that applications delivering value can exist at higher than the $0.99 price point of many iPhone apps.

When scaling an app up for the iPad’s capabilities developers will need to carefully consider the real utility they’re delivering and if it’s something that can’t be done on the iPhone today. The revenue potential of those higher price points will bring even more compelling applications to the platform.

It will be very interesting to see how pricing evolves with the new class of computing from the iPad. I’m hoping that other developers follow Apple’s lead and establish value based price points for their apps rather than cranking out quick turn applications hoping for an accidental success.