App Cubby Tweaks AppStore Pricing Model

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iPhone application developer AppCubby has slashed prices on all its apps to 99¢ to combat what App Cubby founder David Barnard describes as, “the challenges of selling in the App Store.” Apps formerly priced up to $10 will now sell at a flat dollar fee, with satisfied users invited to make “donations” to the developer to fund future app development.

“The App Store [has] continued to frustrate me and foil my best efforts. So I’ve decided to try a little experiment,” Barnard says, echoing concerns he’s expressed before over the financial ecology of Apple’s iPhone and iPod Touch application marketplace.

Barnard’s frustration, that “artificial market forces are driving down the price of apps, which in turn drives down the perceived value of the products we have invested significant time and money to create,” has also been widely expressed by developer Craig Hockenberry, who published a wish list of changes he’d like to see made to the AppStore back in December.

AppCubby’s “experiment” will be interesting to follow insofar as it appears to push beyond Apple’s AppStore pricing guidelines, which prohibit “sales” of software outside the approved channel. If App Cubby can gain greater exposure for its products by pricing them at a buck and fund additional development operations through donations made outside the AppStore, it could look like a better deal for everyone – including Apple – than trying (and failing) to move the same apps for $5 – $10.

Via iLounge

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