In my last post, I mentioned how independent software companies are fighting a battle with continuously dropping prices. They also have the users expecting software to be perfect and at a crazy low price. There have been lots of articles out there (many very good) discussing how the App Store for both Mac and iOS has contributed to this problem. I don’t want to rehash any of that and you can read one of those articles to gain some insight into the failures of the App Store.
There is one company and their pricing practices that seems to get away without any blame for the constant downward spiral of pricing. That company is Apple. Look at what Apple is charging for Pages, Numbers, Keynote, and even new versions of their Operating System. The grand total they are charging for those four products is $0.00. If Apple is not going to charge for software where a at least a year of work is involved (Mac and iOS), how can other developers charge for their software? In a lot of ways Apple is setting the example for all of the other software developers.
I have briefly mentioned my theory to one or two people and they have made some good points counter to my suggestion. The first point is that Apple is in the business of selling the hardware, not the software. Therefore it is OK for them to give their software away for nothing.
The argument does make sense, to a point. I think that if Apple were only giving away the new operating systems for free then I would agree. However it is not only the OS they are giving away. They are also giving away productivity applications. How are other software companies that make similar applications to competed with free?
Another possible argument is that Apple does charge for some of their software (Logic and FinalCut come to mind) so they don’t have to charge for their other software. While it is true Apple does charge from some of its professional creative software, the fact they don’t charge for used to be called the iWork suite indicates the lack of value they see for the product. Additionally they feel they can do whatever they want with the software because it is free (think how they gutted Pages and numbers for the Mac so it could be on par with the iOS versions).
There are multiple factors that have contributed to the price of software dropping. However Apple’s own pricing models should be added to the equation.