Is my iPhone App a Commodity?

According to this article by Robert Scoble, a recent release of Tweetie is under scrutiny for charging a fee for an upgrade in the App store. What’s going on here?
In early May 2009, Mashable compares 29 Twitter apps for the iPhone. I assume there’re more today. An excess supply of iPhone Twitter apps suggests falling prices.
If I were a budding iPhone Twitter app developer, I would ask the following the questions when considering price and positioning:
  • What’s the perception of quantity or choice from the consumer’s perspective?
  • Are Twitter apps affected by commoditization? Are there too many Twitter apps in the App Store?
  • How will I differentiate my product?
  • How will I get users to trade up to other products or services?

In the interest of full disclosure, I’ve had an iPhone for less than a week and don’t own Tweetie 2.

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Is my iPhone App a Commodity?

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