As I write this post Apple’s stock has hit a new high of $151 per share, and the company is swimming in money. Apple’s treasure hoard has topped $250 billion and shows no sign of slowing down. Apple is one of the richest and most successful companies in history.
But what about the developers that create the apps in Apple’s iOS App Store? One writer recently considered the idea that Apple has actually done an enormous amount of damage to developers by fostering a race to the bottom in terms of software pricing.
Matt Gemmell writes on his blog:
One measure of the value of a person’s creative output is what another person is willing to pay for it. Low prices actively court those who place less value on work. That’s not an admonishment; it’s just a simple fact. And no, you can’t balance the price-point and the sales figures to achieve the same income: there are far, far more people who will only buy at $1 (or free, if you’re trying to sell in-app purchases). If you sell at $3 instead, your number of sales will go down by much more than the factor of three that you increased the price by.