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June 29, 2011 5:56 AM   Subscribe

This iPhone app made it into the top ten grossing productivity apps list on iTunes for a day. It appears to be an app that shows text in various fonts on background colors of the user's choosing. What am I not getting here? How is this worth $170?

I'm not sure how much it takes to get to 10th place in Productivity for a day, but I'd guess it'd take more than, say, 10 accidental buys ($1700), to push it past OmniFocus for iPhone. So, I think people are intentionally buying this app.

That company also has a curiously priced ($30) calculator app.

Some theories floated by friends and colleagues that I've asked about this:

- The app is intentionally overpriced just to get curiosity buys, a la overpriced wine or that infamous I Am Rich app.
- The app has some secret functionality.
- The app is used to launder money, specifically from stolen gift cards.

They seem plausible, but I don't see any solid evidence for any of them. Does anyone have any? Or know of any other reasons that this app has sold at this price?
posted by ignignokt to Computers & Internet (17 answers total) 1 user marked this as a favorite
 
The app is used to launder money, specifically from stolen gift cards.

If that's it, I expect they'll have a problem collecting their Dev checks from Apple
posted by DigDoug at 6:12 AM on June 29, 2011


An app is sold at the price that its developers think others are willing to shell out. Why not contact the developers and ask them?
posted by dfriedman at 6:13 AM on June 29, 2011


Best answer: Apple continually tweaks their ranking systems and the App Store rules, so I can't say with 100% certainty that what I'm about to say is correct, but I know that it certainly used to be.

Apps used to be able to game the rankings system by switching from a free app to a paid app. They'd start out as free, get into the top ten by hook or by crook, and then start charging. Their popularity would, at least temporarily, ensure them a high place in the 'Top paid apps' chart, where their presence would generate a few impulse purchases. However, you mention that this in the 'Top grossing apps' charts, so it probably doesn't hold true, and of course there's a big difference between 99¢ and $170. Perhaps a more sophisticated version of the trick I mentioned before would be to price the app at $99¢ or so, buy enough of them yourself to get into the top ten, then jack up the price? This seems like a very elaborate half-scam though. I could believe that it's got some kind of hidden functionality, but the only one that springs to mind is tethering, and I can't imagine anyone would rather pay $170 than jailbreak or get that functionality legitimately through their carrier. Hmm…
posted by jaffacakerhubarb at 6:18 AM on June 29, 2011


If the top grossing apps algorithm is based on something like amount of money earned per unit time, then hypothetically, maybe it can be gamed by putting up an app at a high price and immediately buying some copies yourself. Then the average amount of money it is earning per hour (or whatever) would be quite high and it would seem like a hot new app.

Also, the company appears to be Chinese, maybe there is a currency mistake or misunderstanding of some sort in addition to the above.
posted by Diplodocus at 6:34 AM on June 29, 2011


This is just a theory, but it could be that the developer's been handing out promo codes for people to download the app for free - possibly to boost the app's ranking and get those curiosity buys. I have no idea whether downloads using a promo code count towards the gross.
posted by Metroid Baby at 6:47 AM on June 29, 2011


Appshopper page, which shows the price has probably never been changed.

I would not be surprised at all if there is a very quick dropoff in sales in the top 10 for less popular categories like Productivity.
posted by smackfu at 6:49 AM on June 29, 2011


Best answer: This is similar to something I noticed happening with books at lulu.com.
posted by davebush at 7:59 AM on June 29, 2011


Best answer: The ranking is almost certainly being gamed somehow, or is an innocent bystander of something else, like the aforementioned money-laundering.

It's kind of hard to believe it could rank so high (top ten grossing productivity apps list) and yet not have enough customer reviews to even display a rating average. So, yeah, something's being gamed.
posted by Thorzdad at 8:18 AM on June 29, 2011


If the developer were to buy 3 copies, it would cost ~$510 of which they'd get 70% back. Meaning they paid $170 for the ability to say "Author of the highest grossing apps in the AppStore" on any app they make. That's good, and cheap, marketing.
posted by blue_beetle at 8:21 AM on June 29, 2011 [2 favorites]


...or is an innocent bystander of something else, like the aforementioned money-laundering.

Sorry to derail, but how would this work? I don't understand how buying someone else's expensive app would be an effective way to launder money.

I get that buying your own app would work, since you'd get "clean" money when Apple sends you your developer cheques, but I don't understand the "innocent bystander" theory.
posted by asnider at 8:42 AM on June 29, 2011


Sorry to derail, but how would this work? I don't understand how buying someone else's expensive app would be an effective way to launder money.

Can you get refunds for apps? I think you can get refunds for Android Marketplace apps within 24 hours of purchase, but not sure how it works with Apple apps. In theory (if you can get refunds) they could buy stuff with dodgy giftcards and then get a cash refund.
posted by EndsOfInvention at 8:46 AM on June 29, 2011


Best answer: There's always a cost for money laundering, so it may not be predicated on the refund. The people who made the app could be the same people laundering money with the app. They would essentially be buying their own app with stolen money (a gift card) and getting back clean money (from Apple).
posted by OmieWise at 8:49 AM on June 29, 2011 [1 favorite]


That company also has a curiously priced ($30) calculator app.

The screenshots of that app are awesome.

They also have an app called "Food" that answers, among other things, your burning questions about tea + dog meat. It's also probably the exact same app as this one by the same developer.
posted by mkultra at 9:19 AM on June 29, 2011 [1 favorite]


Can you get refunds for apps?

You can, but unless I'm mistaken, it's at the developer's discretion. There's no official App Store policy that guarantees a refund. But as OmieWise points out, you don't need the refund mechanism. You're still going to get 70% of what you stole/came-by-illegally in "clean" money from Apple. Seems like kind of runaround way of doing it, but I suppose 70% is better than nothing.
posted by OneMonkeysUncle at 9:21 AM on June 29, 2011


I'm no expert, but I'd think a money-launderer would be overjoyed to get a 70% return on ill-gotten gains (not that I'm saying that's what is happening here).
posted by Nabubrush at 9:31 AM on June 29, 2011


Best answer: You can, but unless I'm mistaken, it's at the developer's discretion.

On the App Store, refunds are at Apple's discretion. The developer only finds out about it after the fact.

A couple of months ago, somebody hacked my iTunes account and bought a $24 Chinese app with my credit. I saw several other people complaining about the same thing happening to them, so I think it's clear that it was a junk app controlled by the same people doing the hacking. They hoped enough customers wouldn't notice the charge or know how to request a refund.

(Apple refunded me within a couple of days of being notified, incidentally, and the app is now gone from the store.)

So that's another possibility as to what's happening here. Rising in the charts could just be a by-product of the scamming.
posted by Georgina at 6:06 PM on June 29, 2011


Response by poster: I'm leaning toward the money laundering explanation - there's just no reason to pay that much, even for hidden functionality, and it does seem to fit in with similar scheme. Thanks, guys. And keep chiming in if you have additional ideas!
posted by ignignokt at 8:08 PM on June 29, 2011


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