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iPhone App Prices Tanking

February 25, 2009
by Dan Frommer
Senior Editor, Silicon Alley Insider

Dan Frommer

Apple (AAPL) is famous for keeping its gadget pricing steady. But the iPhone app store is a much different market: App developers have cut prices significantly in the last few months. And the market for $10 premium apps seems to have evaporated.

The top 100 paid apps in the iPhone app store have dropped 19 percent in average price over the last two months, according to AppShopper sales charts we analyzed. Today, the average top-100 app sells for $2.55. A month ago, it was $2.78. Two months ago, it was $3.15. (The 50 most popular apps have dropped in price even faster: The average top-50 app now sells for $2.39, down 34 percent from $3.63 two months ago.)

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