The Mac App Store (MAS) is just around the corner. Time to get in last minute predictions.

One topic that is on every developer's mind is how the MAS will affect app pricing. I predicted in an earlier post that the sweet spot for Mac apps will be about $20. I'm still hoping this will be the case, but at the same time I have noticed that there seems to be a relationship between the average price of apps in the App Store, and the entry level price of the device they are built to run on. It is quite a simple relationship at that.

        Mac's Law of App Store Pricing

        Cost of entry level device / 100 = average app price

The entry level device for iPhone format devices is the iPod touch, at around $200, giving an average app price of $2. Although the evidence is completely anecdotal, that sounds about right for the average price of an iPhone app. You could say it is the price people would expect to pay for an app.

What about the iPad? Entry price is $499, giving an app price of $4.99. Again, that seems on the money. There are a hell of a lot of iPad apps around that price.

The bad news for Mac developers, including yours truly, is that if this 'law' holds for the Mac App Store, with full entry level Macs starting at $999, Mac apps might be expected to come in at around $10 on average. (I've ignored the Mac mini because it is not a complete system.) That's quite a bit lower than what many Mac developers would be hoping.

Does that mean all existing software must drop to $9.99 to compete? I don't think so. Some may, depending on the market served, but I think most existing developers will play the same game that OmniGroup have played with their iOS app store offerings, charging a premium price for a premium product. I see no reason why this strategy would not work, seen as OmniGroup seem to have profited by it.

So if existing developers won't drop their prices to $10, who will? I think there will be a new breed of Mac app developers migrating from iOS. This type of developer is exemplified by the developers of Reeder, a very popular RSS feed reader for iOS. They are in the last stages of beta testing their new Mac app. What's the bet it comes in at about $9.99?

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