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Currently writing about iPhone Development, GWT, Ajax, Leopard, and Java.
ForeFlight: The AppStore's Most Expensive App (and why it's a bargain)
Friday, July 11, 2008
Apple's App Store launched yesterday with 552 native applications for the iPhone and iPod touch. Over 25% of these apps are free, and 90% are $9.99 or less. Sitting at the top of the price distribution is ForeFlight Mobile v2.0, available in the AppStore for $69.99 in the US and €54.99 in Europe. (Disclaimer: I'm one of the ForeFlight developers.) After seeing this price, Joe iPhone Owner might share the reaction of the user who left this review on ForeFlight's App Store page: "I have honestly not tried this application, but that's why I'm leaving this review. I'm sure the value that this company put into it is of worth, but $70 seems way to steep. I would like to see this app more like $9.99"After all, if Sega's Super Monkey Ball is $9.99, shouldn't everything be $9.99? The answer is no, but let's establish some background first...
What is ForeFlight?
ForeFlight Mobile v2.0 is an iPhone application for aircraft pilots, whether they're ferrying passengers for Southwest Airlines, training out of the local airstrip on the weekend, or transporting celebrities on a private jet. ForeFlight Mobile lets pilots file flight plans, view detailed runway diagrams, receive FAA flight alerts, check flight conditions, and see weather reports.
Tyson Weihs and Jason Miller founded ForeFlight in 2007, launching the first version of ForeFlight Mobile as a subscription web application for the iPhone. This service cost $8.95/month or $79.00/year, and immediately built a strong user base in the aviation community. A couple months ago, I came on board the ForeFlight team to help them transition their successful web application to a native iPhone application. With yesterday's release of ForeFlight Mobile v2.0, the subscription service is no longer offered - just a native application for a one-time fee of $69.99.
Why does ForeFlight Mobile cost more than Super Monkey Ball?
Once Sega releases a game, there are no support costs other than the occasional bug fix. A preflight intelligence tool like ForeFlight Mobile, however, requires continually updated data streamed from robust servers. Out-of-date runway diagrams and yesterday's weather aren't very helpful to pilots, so ForeFlight Mobile is constantly updated with data from the FAA, national weather services, and international airport directories. Subscribing to these feeds and reliably maintaining this service costs money.
The other factor involved with pricing is potential user base. Raise your hand if you like playing games... now keep your hand raised if you're a currently licensed pilot. Sega can amortize development costs over a vast user base. Specialized applications aimed at vertical markets or enterprise organizations have fewer users, so end up costing more than consumer applications (or don't get developed at all). In order to use the "free" iPhone applications from Salesforce.com and Oracle, companies must buy server licenses that easily run into 6 or 7 figures (to say nothing of installation costs). AppStore offerings span the entire spectrum of the software market, which make it a fascinating experiment in software retailing.
Why is ForeFlight Mobile a bargain?
Traditionally, applications like ForeFlight Mobile are offered via subscriptions costing pilots over $100 annually. One competitor charges $169 for the first year of service, and $129 each additional year. ForeFlight's purchase-once, use-forever price of $70 is revolutionary in this market and already getting great feedback from pilots. (On the MacRumors iPhone forum, one pilot was surprised it didn't cost twice as much.)
So ForeFlight holds the distinction of being the App Store's most expensive application, and in my opinion, also one of its best deals.
