Great article by Carlos Ribas, developer of HoursTracker, with plenty of insight and advice into the current realities of the App Store:
My advice: Try a price reduction promotion to see if a lower price yields more revenue. If you can stomach it, let the discounted price stand long enough to get a feel for network effects. Try the opposite — check if increasing the price works better. Re-test previous pricing tests from time to time. What failed before could work beautifully now. Don’t get hung up on what you think the price should be. Do what works, and experiment often.
Via The Loop.