Cheap Apps Stifling Innovation?

Although Apple has seen 10,000 applications and 300 million downloads in less than four months in its App Store, some are complaining that the lower priced apps are stifling innovation and inhibiting developers.

Craig Hockenberry, a seasoned developer who created the Frenzic and Twitterrific apps describes this problem well in his open letter to Steve Jobs.

The main problem is the enormous amount of 99-cent apps or less (see graph), what Hockenberry calls “ringtone apps,” where developers reduce their prices as low as possible so they’ll get favorable placement in iTunes. Hockenberry describes this, “We have a lot of great ideas for iPhone applications. Unfortunately, we’re not working on the cooler (and more complex) ideas. Instead, we’re working on 99¢ titles that have a limited lifespan and broad appeal. Market conditions make ringtone apps most appealing.”

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