Just read a great post by Ben Thompson on iOS economics, “Why Doesn’t Apple Enable Sustainable Businesses on the App Store“.
A key observation: “Apple makes money on hardware. It’s in their interest that said hardware be sold for as much of a premium as the market will bear. However, it’s equally in their interest that the complements to that hardware [e.g. apps!] are sold as cheaply as possible, and are preferably free.”
As an iOS app developer myself, I’m certainly finding the economics of it challenging. The restrictive sales models certainly doesn’t help matters. It’s a pity that Apple doesn’t allow developers to create time-limited trials, or allow a software ‘rental’ model.