Tuesday, November 15, 2011

iPad App Price Adjustment And Revenue

Oliver Reichenstein posted on Google+ some details regarding the sales of iA Writer for iPad based on price adjustments. Recently, he reduced the price of iA Writer for iPad from $5 to $1 and initially saw a sales and revenue spike. After a couple days the revenue for this particular iPad app returned to the same levels as before the reduction, meaning that a 5x reduction in price resulted in 5x more unit sales.

He also noticed similar revenue/unit sales changes with the Mac version of iA Writer with price adjustments. More exposure can be a good thing, but can also lead to more support costs, negative comments and rare software bugs. The lower price will probably help Apple sell their next 100 Billion Apps a little faster!

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