Apple Thoughts: Paid App Prices on Steady Decline

"Apple (AAPL) is famous for keeping its gadget pricing steady. But the iPhone app store is a much different market: App developers have cut prices significantly in the last few months. And the market for $10 premium apps seems to have evaporated."

Two months ago the average price for one of the top 100 paid apps was $3.15 USD, but over the last two months it has dropped to an average price of $2.55 USD. The average price of a top 50 paid app dropped even lower to $2.39 USD from $3.63 USD two months ago. The drops are 19% and 38% respectively. Per the article, its not clear on why developers are doing this as none have responded to the request for information, but it sounds like basic economics to me: supply and demand. That may be why the $10.00 USD prices have all but disappeared from the top 100 lists too.