I'd argue that the charts in Section 4 are the reason to price high. Your overall revenues are higher. Joel Spolsky has his article on market segmentation ht

I'd argue that the charts in Section 4 are the reason to price high. Your overall revenues are higher. Joel Spolsky has his article on market segmentation http://www.joelonsoftware.com/articles/CamelsandRubberDuckies.html http://www.joelonsoftware.com/articles/CamelsandRubberDuckie... that provides a more thorough treatment of why increasing the price to "near absurd" levels is actually beneficial from a revenue standpoint. Unfortunately, Apple's app store as a channel makes it difficult (impossible?) to provide differentiated pricing (unless you do the classic free / paid with two apps).