This was my analysis as well, although we both have the benefit of hindsight, and everything is obvious once you know the answer. But it looks to me like the following models are likely optimal:
1) App that solves a trivial problem, no viral potential, lots of competition: free (or don't do it at all). Apps that fall into this category are things like distance measurement, to-do lists, etc.
2) App that has viral potential but lots of competition: freemium (games fall into this category)
3) Niche app that solves a hard problem for a small number of users: paid, with the price as high as possible.
There is a fourth category, but it's illusory: app that solves a hard prolbem for many users and has viral potential. If you're an individual dev, the odds are in those areas you'll be facing competition from players with much deeper pockets who are often giving apps away free to drive their core business.
This person's experience tends to validate this general analysis.
1) App that solves a trivial problem, no viral potential, lots of competition: free (or don't do it at all). Apps that fall into this category are things like distance measurement, to-do lists, etc.
2) App that has viral potential but lots of competition: freemium (games fall into this category)
3) Niche app that solves a hard problem for a small number of users: paid, with the price as high as possible.
There is a fourth category, but it's illusory: app that solves a hard prolbem for many users and has viral potential. If you're an individual dev, the odds are in those areas you'll be facing competition from players with much deeper pockets who are often giving apps away free to drive their core business.
This person's experience tends to validate this general analysis.