Last night, Research In Motion (RIM) officially named its upcoming BlackBerry software store, BlackBerry App World. For the most part, RIM has been generous with details about App World, making regular announcements and providing status updates for both BlackBerry users and developers. But yesterday the BlackBerry maker dropped a bomb: Not counting free apps, the lowest price point for App World software will be $2.99. No $0.99 apps. Not even $1.99 apps. And that just might be enough to sink—or at least severely batter—RIM’s app-store-ship before it even sets sail. Here’s why.
First of all, some proactive confusion-control: the BlackBerry App World is the new name for what RIM has previously referred to as the BlackBerry Application Storefront, not to be confused with the BlackBerry Application Center. The App Center, which RIM launched in conjunction with Verizon Wireless when the BlackBerry Storm hit the U.S. market in November, is an on-device, carrier-managed-and-maintained software distribution channel. The App Center will be available to all BlackBerry devices running handheld OS 4.7, including the Storm and the upcoming “Niagara” 9630.
BlackBerry App World, which is expected to open its virtual doors some time this month, will be a similar, on-device service populated with applications submitted by third-party developers and approved by RIM for distribution. (RIM will ensure submissions meet both content and quality standards.) A PayPal payment account will be required to both submit applications for consideration and purchase them. Unlike the BlackBerry App Center, wireless carriers will have nothing to do with App World. And App World will be available to all BlackBerry smartphone owners with trackball devices—the entire 8xxx series lineup, excluding 87xx handhelds—and the Storm. And BlackBerry themes will not be offered at first.
Oh yeah, let’s clear up one more fact while we’re at it: The BlackBerry App World is aimed 99.99999 percent at CONSUMERS.
RIM’s Manager of Developer Relations, Mike Kirkup, told me so when I sat down with him in New York City last month after the company announced the latest version of its BlackBerry Enterprise Server (BES), v5.0, or “Argon.”
There’s understandably some confusion over this point, as RIM’s traditional user base has been composed almost exclusively of businesspeople. But enterprise customers often need heavily-customized applications and extensive support options, the likes of which could not possibly be offered as part of BlackBerry App World. As such, those corporate customers will continue to procure complex business applications through existing channels and through independent software vendors (ISVs), according to Kirkup.
In other words, RIM knows App World really isn’t a viable option for businesses. On the other hand, the BlackBerry-maker need only look at Apple’s impressive success with the iTunes App Store to see that such distribution methods work just fine for consumers.
And that’s where the $2.99-starting-price-point dilemma comes in. Along with the App World name announcement, RIM also unveiled the associated app-pricing-structure, which breaks down like this:
Not counting free apps, note the lack of any pricing options below $3.
As of 9:30 am EST, when this post was written, more than half of the top 25 paid applications in Apple’s iTunes App Store were priced at $0.99. And four of the top five apps sell for $0.99. Furthermore, only six of the 25 top paid iTunes apps sell for more than $1.99, and five sell for more than $2.99.
That’s no coincidence. Think
