Free vs. premium apps: Mobile app pricing

Mobile applications continue to proliferate, as interesting functionality and utility continue to emerge within these small, lightweight and easy-to-install software. As we’ve often heard, there seems to be an app for everything. You may say we are partial, but applications seem to enjoy a growing level of importance nowadays due to the functionality they bring to smartphones, tablets, laptops and PCs. Without apps, many question the utility of tablets as being more than just an oversized feature phone. And now, more OEMs are looking to leverage this trend and embed various apps to further differentiate themselves in an increasingly competitive marketplace.

 

As a developer, we are keenly interested in this ongoing commentary in the community. One such topic that continues to arise is the debate around app pricing models. As devices and their capabilities evolve, it’s natural to see a similar evolution on the app development side. Here at Quickoffice, we’ve evolved tremendously in the last year to accommodate the new tablet paradigm. At the dawn of the iPad, we made an executive decision that we would develop two separate applications, one for the iPad and another for the iPhone / iPod Touch. Why, you ask? Because of three main reasons: touch interface and screen size; use case; and user expectations. When combined, it painted a compelling and necessary reason to deliver two separate apps.

 

Now, with this decision, also came the inevitable pricing question. For the most part, apps have always come with two basic pricing models: paid and free. However, with the evolving device ecosystem, there is further differentiation being made on the ‘paid’ apps side, distinguishing between ‘basic’ and ‘premium’ apps. The distinction between this second reference becomes harder to define, as consumers have different expectations regarding what is a ‘premium’ app and also what their interests and desires are that would lend themselves to purchasing a more ‘feature-packed’ application.

 

To me, it seems natural to expect these more complex, mature and extremely functional apps to be priced higher, especially as they require more development time and attention. I feel this is supported by stories that appear, like this one from PhoneDog, which questions whether tablets will eliminate the need for a home computer. Consumers pay a high amount for software on their desktops with the premise that it includes robust functionality to serve their every computing need. Following this line of thought, it would seem that if consumers are using tablets for more robust work, they would expect to pay more for applications with more functionality. Along a similar vein, BBGeeks said they’d recommend purchasing a $15 alarm clock app, as they found its new functionality intriguing enough to justify the price increase.

 

What do you think? Some believe that the expensive software model days are over, while others see the value of paying prime rates for ‘super apps’. Where do you draw the line, or would you?

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Comments (4)

Ryan
Said this on 6-8-2011 At 06:56 am

I don't mind paying for an app as long as the functionality is there.  I wouldn't, however, pay the same for an iPhone app as I would for a iPad app.  The usability is just not the same.  I personally like apps having a cheaper iPhone version, and then a separate iPad version, unless the app is reasonably priced at around $10 (for both versions).  I think $5 should be the highest price point for an iPhone app.  I find it a tough decision to buy an iPhone app over that price.  But, I don't believe that free is always best.  I will pay for great support and good features.  

Jim Kender
Said this on 6-8-2011 At 07:41 am

I am all for paying for a good product, BUT need to have a trial of it before I decide to spend the money.  There should always be a free (full fledge temp) license available before a user commits to buying the license.

Said this on 6-15-2011 At 05:25 pm

im all for paying for a quality app..however, I there should be a free trial period for that app! Im sure there are numerous excellent apps out there but ill know becuase a) no free trial period and b)reviews demos are lacking or poor in scope and quality.  As it is right now, im trying to weigh which app I want to buy quickoffice pro or quickoffice pro HD. It would be nice to have a no holds barred ipad app, but on the other hand it would be nice to be able to utlize its offering on my iphone (just in case) either way way, the lack of a free FULL FUNCTIONING app only prolonged the debate and may in fact allow a competitior to steal me away while I deliberate!

Steve
Said this on 7-27-2011 At 08:11 pm

Charge an honest fee for your software.

if people don't like it, they can always get a refund. If you create quality software users will love and rave about how much they love it, and that will help convince others to buy your wares.

IMO, as a software developer "trialware" or "freeware" give too many people an excuse not to buy your product, or ruin the experience with ads. $15-20 for an office suite is dirt cheap, especially considering the amount of effort it takes to produce it. You certainly won't find that low of a price on a pc platform...

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