“Charging top-end premiums for smartphone apps is becoming increasingly difficult. The majority of paid-for apps are in a commodity pricing zone and those capable of pushing above the $5 mark are in the minority”.
“App-savvy consumers are less willing to pay a high premium for anything but ‘must have’ apps. The challenge here is what is considered ‘must have’, as this varies by customer segment and the individual. However, good candidates are utility apps that bring increased productivity and convenience, or those that are deemed cool, fashionable and fun, such as the release of a long-awaited blockbuster game.”
Meanwhile Dillon believes that while much has been made of the threat HTML5 poses to the hegemony of native applications and app stores, the app store will remain the primary channel for consumers to get applications onto their mobile phones.
He added: “App stores offer a familiar environment for consumer to discover, download and purchase apps, and we anticipate that the majority of app stores will list a mix of both HTML5 and native applications in their catalogues in the future.”
Sign up for CIO Asia eNewsletters.