Historically, Windows Mobile apps have been relatively expensive. The average price for a quality app sold directly or through a software store like MobiHand or PocketGear tends be in the $15-20 range, which, compared to prices for an iPhone app, is very high. And it used to make a lot of sense for Windows Mobile developers to charge more: because they didn’t have access to a robust on-device app store, their sales volume was lower, thus warranting the higher prices, needed to cover their costs and make a profit. iPhone developers can charge less because they know that they’re likely to see a higher volume of sales compared to what they’d get from the Marketplace for Mobile.

But we’ve been watching app prices in the Marketplace for Mobile, and prices are getting lower. When the store launched, the average price for an app was still around $15-$20. Now, if you peruse the app store, you’ll find that the average price for an app is now $5-$10, with many selling for under $5. For the average consumer, the sweet spot for a mobile app is probably around $5. In their mind, a mobile app often has the fraction of the functionality that a full desktop app would have, and so the price should reflect this.

These reduced prices represent an important shift that may give the Marketplace for Mobile a fighting chance at survival against other app stores. If consumers are enticed by lower prices and decide to buy more apps, this will hugely incentivize app developers to put their apps in the Marketplace (and at reasonable prices). This creates a healthy cycle where developers make more money by selling a higher volume of apps, and consumers can feel that they’re getting a fair deal.

Have you been noticing that Marketplace for Mobile app prices are getting lower?