When the iPad was first announced by Steve Jobs, we all envisioned a wonderful world of higher resolution applications that would take full advantage of the screen.  Who really wanted to use all those iPhone apps that didn’t fill the screen, and if you scaled them up they would look all distorted?

After the iPad App Store opened, we were all taken back a bit.  Apparently more screen real estate somehow also equaled high prices.  For instance, the official Scrabble app was $2.99 for the iPhone, but $9.99 on the iPad.  Apparently companies somehow confused a device with more screen space as meaning development cost more?  Or perhaps they thought the customers had more money because they had bought such a device?

ipad portrait While the iPad has now sold two million units in just its first 60 days of release, the rate with which iPad apps are dropping in price, it would seem their sales are not keeping up with the hardware they run on.  Prices for apps have been dropping steadily since a few weeks after release, and while it hasn’t been across the board, such as ones like Scrabble that are released from major companies, a lot of applications have begun to drop in price.

What is causing so many price drops is unknown, it could be just be how things were planned from the beginning by these developers, or they might have simply discovered there is a limit to how much people will pay for an app no matter what the screen resolution is.  Just because an app is redesigned for a larger screen, if it does nothing more than it did before, customers simply aren’t going to pay more.

Hopefully the market is finding its middle ground now, but we’ll just have to wait and see how things play out in the coming months.  I would suspect that the land grab is over, and cooler heads will prevail from now on.

What say you?  Why do you think prices dropped so quickly?