“Offers in-App Purchases”

He’s specifically refuting the “people with $800 phones are complaining about a $3 app” arguments. I’d agree with him on this too. Consumers simply don’t see their iPhone as an expensive thing — it’s not (in that sense) a luxury item.

I disagree with ben’s reasoning based on how iPhones are sold in Belgium.
In Belgium iPhones are sold unlocked at full price and not at a discount combined with a carrier plan. – Brooks Review

If Americans see the iPhone as a 99$ phone with an expensive contract, I can see how they perceive it as not expensive. So buying a couple of 3$ apps easily makes up 10% of the total value of their phone.

For us, an iPhone is a 700€ item, so when you spend almost a thousand bucks on a device, a 3$ app is peanuts in comparison.
And even then, people still react the same way:

  • cool app, what’s it called.
  • (appname)
  • oh.. it’s 2€.. nevermind

So even when the iPhone is seen as a luxury item, people still oppose to paying for apps.