That is true, definitely. And because my app has made more than $500, I would be just about breaking even now. But, I broke even after a week at $99, which means I'm far more in profit than I would be with $500 fee.
I suppose that the higher rate would mean less competition, but for my app, which is slightly niche, there arn't many other apps out there anyway so that fact wouldn't help me all that much.
I think the App Store needs some sort of hierarchy in order to prevent the sea of apps that have appeared, but I don't know what the solution is. Personally, I don't think raising the price is the true solution. Maybe some kind of tiered structure which would enable developers to start low and work up - but I've no idea how that would work in practice.
Anyway, let's wait and see what Apple have in store!
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