Subscriptions and the Tom Tom iPhone App

July 7th, 2009

The trend started by AT&T and Sygic of iPhone navigation apps with a monthly fee has been a scary prospect. Imagine how much these companies could gouge from our wallets over a year. Paying a continuous fee for any app is a bad idea. That’s the problem with in-app purchases — the ease that a developer can bait a customer into a buying a cheap app only to find that it requires much more money to even use.

Despite this, Tom Tom seems to take a different route:

Unfortunately, TomTom wasn’t able to provide concrete information about pricing and availability—the company is still saying simply “later this summer.” However, Murray did tell us that the company is leaning towards a set price for the application and maps, rather than taking the subscription approach of AT&T. The application you purchase through the App Store will include the TomTom navigation software and the latest TeleAtlas maps for your area; North America and Europe will be the initial areas offered.

One-time fees that disclose the actual cost of a product are the right way to sell an App for the iPhone. Complete transparency for what you’re actually paying for just doesn’t work with subscription apps.


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