The price has nothing to do with it. Sell your calculator app for $20, and some kid in a third world country will gladly sell his for 99cents. His 99cents has

The price has nothing to do with it. Sell your calculator app for $20, and some kid in a third world country will gladly sell his for 99cents. His 99cents has the equivalent buying power of your $20. How can you compete with that? You can't compete on price, you have to compete on being different and value. That way, even if you sold for peanuts, you will have so many users that you can still make a lot of money. I rather sell millions of apps at 99cents each than 100 at $100 each.