There's a lot of "testing the waters" going on now with iPad app pricing. It'll take several months before pricing models settle. We saw this when iPhone os 2.0

There's a lot of "testing the waters" going on now with iPad app pricing. It'll take several months before pricing models settle. We saw this when iPhone os 2.0 came out. Lots of $5 and $10 games. As more competing apps became available, and the number of iPhone users increased, prices came down. This took months to play out, and it'll probably be similar with the iPad. Right now I don't see many people buying a $4.99 issue of Time for their iPad when you can subscribe to the paper edition and get 56 issues delivered to your door for $20. Yes there is a convenience component to the digital version, but a 1,400% markup in price isn't going to fly in the long run. Lots of experimental pricing like this will be going on for a little while. Early adopters will jump and spend money on content like this to show off and learn about their new device. But that'll dry up after a bit. It's always easier to lower prices than to raise them. So it makes sense stuff will start off high. By late summer or maybe even by fall we'll have a better clue regarding iPad pricing models. More people will own them by then, and there will be more content available, competing for business, driving down prices.