How much will you pay for an app (for noobs, APP = Application) – be it online or mobile? This is the question for big tuesday!

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We all know that we’ve been paying for iPhone apps for a long time. But the state of things right now for iPhone app selling market is murky if we take the case of Apps which are in order of more than $9.99. Let me paint you a picture first:

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The top 100 paid apps in the iPhone app store have dropped 19% in average price over the last two months, according to AppShopper sales charts. 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% from $3.63 two months ago.) SAI reports

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So the general state of things are that the high priced apps are getting evaporated as we speak. Now enter case 2 where TC reported that Zuora is bringing his billing subscription service to Facebook, which has more than 50,000 apps in search of a business model. So it seems subscription model is right now the way to go for app industry per se.

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One of the reasons for falling app prices for iPhone can be its commoditizing effect wherein companies are forced to lower their prices to stay in the game to break even but taking the point to subscription based model wherein users pay a defined sum for a specific worth app makes all the more sense.

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But won’t this revenue model also suffer the same fate as other revenue based model for apps? So what would be the best revenue model for app selling industry?

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How about applying the concept of Freemium model to app industry? Will it work? Enlighten me if you know of any services which already follow the same and how are they faring- both India & International?

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