It's all about scalability. .99$ may be nothing, but on a mass scale that adds up quickly. Sure there are plenty of developers who make squat, the same way there are 6-figure bloggers and guys who make pennies. But with the mass reach of the internet, scalability is seen like never before. I think that business model will continue and as the iphone is adopted further and improved you will see even more apps developed. Everyone is trying to take advantage of the situation and make a quick buck. Why not?
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Craig
www.budgetpulse.com