It's a simple IM client! I don't care how poorly the competition is doing, it's an IM client and nothing more!
If it's so simple, the SDK is free, you can code it yourself...
An IM client is far for simple. Especially since they have to work around limitations of Apple SDK - something games do not have to do.
BeatMaker is $19.99 and THAT'S an app that deserves the price they are asking. Let's compare the two apps: One is a fully functional software music studio with features I would have NEVER expected to be available on a cell phone, but rather a desktop platform and the other is an... IM client.
And once you have paid $19.99 on BeatMaker, the money is in the company pocket. Once the costs of development are covered, it's 100% gain and 0% work.
When you pay Beejive IM, part of that cost covers the monthly maintainance that is needed for this kind of application. To work around the limitations of the SDK, they have to maintain a server. A server costs money, each month, no matter if you sold anything that month. So, when you pay $19.99, you are also (hopefully) paying for years of server access.
Besides, BeatMaker is self-sufficient (well, at least until Roland finds out that some copyrighted instrument was duplicated or something). For all I know, an application like Beejive IM might be paying royalties to support some of its protocoles.
I agree that applications on the iPhone platform compete with each others, not with applications on the other platforms. However, developers exist in the real world. If applications on the iPhone sell for one tenth of applications on other platforms, the developers won't be paid a tenth of the pay, nor will the accountant or the landlord for the office.
If the price the iPhone market is willing to be for the like of TomTom is $10 rather than $100 (the price on Windows Mobile), the result won't be a $10 TomTom - because at $10 TomTom would be losing money with each sale (they have to pay royalties for their datas). It will just be no TomTom at all. It will just have proven that the iPhone market is not mature enough to support mature applications.