Posted by & filed under App Economy, Business Analytics, IT Strategy, IT Trends.

Hans Eriksson of Bambuser is an apps guru

Discussion:  If companies give their smartphone apps away for free, instead of charging for them,  it may mean more revenue for the company in the long run.  The underlying idea behind this pricing policy is that it is much easier to get consumers to try something that is free, and once they learn something and find an app that they like, they are much more likely to pay for it.  By measuring the stickiness and utility of apps (how often the user uses the app and how much the user values time spent using the app, respectively) application developers can find the business and pricing model that best suits them.

Source:  BBC News

Date:  August 25, 2011

Link:  http://www.bbc.co.uk/news/business-14673325

Discussion Questions:  

  • Is the idea of giving apps away instead of charging for them going to be the right pricing policy for all smartphone app designers?  When might this not be the case?
  • As a typical consumer, what is the most you would pay for a smartphone app?  Why?

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