> in theory the businesses that want to compete would want to pass the savings to the consumers while staying profitable
This is the app market, not the wheat flour market. Most of the time the apps aren't interchangeable. At least those that provide some value *. So... they will charge what the market will bear.
Do you see Apple reducing their commission from 30% to 5% and changing the 0.99 price to 0.79? I don't.
* ok, not flashlight and TODO apps.
Edit: actually Apple reduced the commission from 30% to 15% for some apps. Did you see any app at 0.84 in the app store? Didn't think so...
This is the app market, not the wheat flour market. Most of the time the apps aren't interchangeable. At least those that provide some value *. So... they will charge what the market will bear.
Do you see Apple reducing their commission from 30% to 5% and changing the 0.99 price to 0.79? I don't.
* ok, not flashlight and TODO apps.
Edit: actually Apple reduced the commission from 30% to 15% for some apps. Did you see any app at 0.84 in the app store? Didn't think so...