I actually like the .99 price point or even 1.99 etc for the fledgling developer who may be learning as they go.
It's funny, 'cuz I actually hate the .99 cents price point.
"Free" I love, and does NOT seem cheap to me, yet .99 cents still does.
When an app is free, it's possible it could be something super-simple, but it's equally possible it could be something super amazing. Some of the best apps are free (Shazam, Simplify Media, Tap Tap Revenge, Facebook, Aurora Feint, Remote, etc.). However, if it's .99 cents, the majority of the time it's ONLY a super-simple "novelty" app, and not worth my time. I feel like developers usually price an app at .99 cents if they know it's a dud, yet they still want to get some moolah out of it anyway. Not that
EVERY app priced at .99 cents is crap, but I would say...well...99 (to use that number again) percent of them are. So to be honest, I've been "trained" to ignore most apps that are .99 cents.
However, if they are free, I'll
always take a look at them, no matter what -- because there's always a chance it could be a quality developer looking to get their product out to as many people as possible. And if it seems interesting, I'll download it and give it a try. Why not? It's free! If I don't like it, I can just delete it. However, I almost NEVER download a .99 cents app (I think Koi Pond was my one exception). They just scream "cheap" and "desperate" to me.
$1.99 is ok, I guess, and $2.99 is even better if the app is REALLY something amazing -- as long as it works well and does what it's supposed to do. (For example, MobileChat, in theory, SHOULD be an amazing app, and quite a steal at only $2.99 -- but since it's buggy as hell, it's not even worth being free in its current state. If it worked flawlessy, it could easily be a $5-10 app, no problem. People WILL pay for quality).
Again, it all depends on the kind of app in the end. The more amazing it is, the cheaper you can price it at and still do well with it, because people are
hungry for
quality apps and WILL download it. Just don't price it at .99 cents! It makes me think of Dollar Stores, which signifies cheap to me. Completely free or 2-3 bucks is better, in my opinion.