TomTom has a brand which is why so many people have been so anxious since the WWDC announcement. Think about it - how much clamor has there been for iGo or CoPilot prior to release? For better or worse, the brand commands a premium.
To me, the "I can buy a stand alone GPS for $X" argument is a red herring. Yes, you can. So go ahead. An iPhone-based GPS app is for people looking for integration on a single device. Personally, I'm not interested in my dashboard looking like a Rube Goldberg experiment. Others are fine with that. To each his own, right?
I'm not at all surprised by the $100 price tag for TomTom iPhone. But I think it exposes the current shortcomings of the App Store - or at least the developer model.
$0.99 is a snap-decision and the App Store is fantastic for that. But $100 is a considered purchase decision. That's a significant amount of money. There is no "return policy". No trial. For example, if I buy a TomTom at Best Buy and I hate it, I can return it. Not so with an iPhone app. Ouch.
I'd love to see a "try before you buy" technology for premium apps in the App Store. Let me try the $100 app for a few days and then it times out. The basic tech is already there. We know that Apple has the master "off switch" for apps that they want to nuke. And with 3.0, they've introduced in-app purchasing. So how nice would it be to be able to try the full TomTom product for 48 hours and at the end, I can chose to pay the $100 or it will be deactivated? I understand the complexities of expanding that on a mass scale but I'm just talking about basic tech and/or design ideas.
Second best (and it's a far worse 2nd) is a neutered trial version of the premium apps. The problem is that watered-down versions give a watered-down impression.
Unfortunately, in the absence of this, the market finds its own way. When I see stories about 8%+ of iPhones have been jailbroken, for example. That's bad for everyone, by the way. The developers lose revenue. So does Apple. But then the developers have to cover their loses by probably increasing their sales price. So if that 8% becomes 20% or 30%, we all lose.
Frankly, I'm happy that the era of $100 premium apps has arrived. The power of this device is amazing and developers out there will be able to do amazing things with it. But the App Store needs to evolve (quickly!) to be able to handle that type of market. This isn't your father's 99-cent app any more.