Premium App Store coming for iPhone?

Stephen Withers
Monday, 16 March 2009 05:00

Opinion and Analysis

By showcasing pricier games within the App Store, Apple can reasonably expect to increase publishers' revenues - and its own, since it takes a 30 percent cut.

The latest version of the rumours, as picked up by Wired, suggests that the premium section won't be limited to games, but will also include business software.

This makes a lot of sense as similar issues apply to both areas. Anyone trying to sell a business application that really does deliver $US20 of value has to cut through the mass of to-do list organisers and suchlike.

By cordoning off pricier programs, people prepared to pay for higher quality or greater functionality know where to look - and those on a budget can steer clear.

That's not to say that a relatively high price tag necessarily means quality. You only have to look back at the notorious $US999 I Am Rich application to prove that point.

But think of it this way: if all you want are some replacement DVD cases, you might as well buy them from a $2 shop (or whatever that translates to in your part of the world). But if you're looking for a movie on DVD, unless you're exceptionally lucky all you'll find there is dross.

The developers and publishers of upmarket software are aiming at people who are prepared to spend money, so they want their products to have the right 'shelf space', not dumped in bins with the 99c cheapies.