iPhone Apps - Freemium?
Time has an article entitled iPhone Apps: To Pay or Not to Pay, part obligatory iPhone App article to appear to be down with the tehcno hipsters and part questionning of the consumer’s willingness to pay for an application when all around us is free, free, free…
‘So why can’t all iPhone apps be free? Well, quite simply, because people are still willing to pay for them. Apple currently generates most of its revenue from up-front sales — whether it’s for MacBooks, iTunes or iPhones. And the pay approach for mobile games, ringtones and videos has long been used by other tech purveyors like Verizon and Research In Motion, and even third-party app stores like Handango. “It is a historical business model,” notes Kevin Burden of ABI Research. Buyers are willing to pony up, though, because of the cachet of the Apple brand.’
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