If developers could charge a price lower than 99 cents, there’s no doubt that some would, and the price curve would shift even lower.
Update (Dec. 28, 2008):
iPhone applications are too cheap, and changes are needed to encourage the development of premium applications that sell for a fair price.
Some of the response Paulâ€™s and Danielâ€™s recent writing about the App Store has gone something like this: Itâ€™s a free market â€” deal with it.
Hereâ€™s the thing, though: itâ€™s not a free market.