$0.99 - $1.99 might just set off the perfect high-volume price storm
http://mooseyard.com/Jens/2008/03/the-beauty-of-99¢-iphone-apps/

So assume you spent some evenings and weekends writing a cool little
utility or game. You submit it to the App Store and set the price at
$1.43. You get $1 of pure, unadulterated profit from every user of the
app. [...] Steve promises us there will be ten million iPhones in the
world. If a tenth of a percent of them impulse-purchase your $1.43
app, that's $100,000.

The developer of Doom and Quake posted this on SlashDot.com ...

"The iTunes distribution channel is really a more important aspect
than a lot of people understand. The ability to distribute larger
applications than the over-the-air limits and effectively market your
title with more than a dozen character deck name, combined with the
reasonable income split make this look like a very interesting market.
This type of developer / customer interaction is probably the wave of
the future for mobile devices, it will be interesting to see how
quickly the other players can react. Based on our experiences with the
carriers, I am betting not very quickly."

A reality check - there may be no future for mobile devices in a world
that is falling apart.

More App Store at Phonedifferent.com ...
http://phonedifferent.com/2008/03/carmack_appstore_is_doomed.html