Apple AppStore economics

There’s an interesting article on Gizmodo talking about the persistent downward pressure on prices at the Apple App Store. The way the thing is structured, prices just keep getting lower which obviously impacts the attractiveness of the iPhone to developers. Apps which are available on multiple platforms are much cheaper on the iPhone.

There’s some interesting economics here, as well as social effects. Apple have clearly done an excellent job enabling developers to write and sell applications, and iPhone customers have clearly taken to it. However, this makes for a very competitive market which is almost entirely sculpted by Apple’s design choices in the App Store and iTunes.

Watch this space…