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How Long Will It Take iPad App Prices To Drop?

Take a look at the just-made-public iPad apps in the iTunes store and what stands out are the prices of many of the apps. Scrabble on the iPad? $9.99 versus $2.99 on the iPhone. Tetris? $7.99 instead of $4.99. Hangman? Yes, Hangman! $4.99.

Sure, app makers can argue that they’re pricing their apps at a premium because they have additional features — but if the history of iPhone app pricing is any guide, prices will start dropping very fast as more apps enter the store — and as app makers battle to get to the top of the best-seller list.

Shortly after the launch of the iTunes App store in July 2008, the average price of a top 100 paid app was more than $4.50. By mid-August, it was down to $4. And by late October — just four months post launch — it was already basically chopped in half, to $2.80, according to a detailed analysis by O’ Reilly Radar. Nowadays, the average price of a top app on the store is $2.43. So, at that rate if you hold out until the end of July, that Flight Control HD app should cost about $3 instead of $4.99.

A couple things to note: iPhone apps will also work on the iPad — and this is a very informal look based off of quick search for “iPad” on the iTunes app store. Things could change by Saturday. Try it out for yourself here.

5 Responses to “How Long Will It Take iPad App Prices To Drop?”

  1. I think it depends on the apps number grow ratio, right now it’s pretty impressive – 3,500 since the iPad was released. I gotta tell you it’s puzzling to decide what a price tag to set for both iPad version for your current iPhone apps and for brand new apps, developed specifically for the iPad. Quite frankly – we all are guessing at this point, as we, the app developers, look at each other apps price:-) You can’t just multiple your iPhone app price on 2.8, it won’t work.