Remember, It's Actually a Computer
John Gruber of Daring Fireball linked to a TechCrunch story this morning about Wolfram Research pricing their Alpha “computational knowledge engine” iPhone app at $50. Next to TomTom’s navigation app (which costs $100), this is the most expensive iPhone app I know of. This has (once again) temporarily refueled the argument about how much iPhone apps should cost.
The whole issue with the price of iPhone apps, which is to say any app priced above five bucks, is due to a widespread incomprehension that the iPhone is actually a computer. Normal, everyday folks are accustomed to paying tens and hundreds of dollars for software. But that software always had to be “installed” on their “machine” at home with a disk. The idea of buying expensive software for what in their minds is just a fancy cell phone is something completely foreign to them, especially given that all it takes are a few taps and your password, and bingo, new application. The painlessness of adding new “apps” (which just sounds like “toys” to most people’s ears) makes it seem like they should be cheap. The intangibility of software, and how to put a value on what it does, has never been more apparent.
The challenge Apple and any other company serious about competing with the iPhone faces is how to change people’s perception of what a “cell phone” is. Sure, “smart”-phones have been around for a while, but the iPhone was the first that actually broke the mold and showed what a real smartphone can do—become a real pocket computer.