In a study of the top 100 iPhone
has discovered something that really isn't that surprising. The cheaper the game, the more likely it is to sell. Of the top 20 best selling titles, a full 15 cost only $0.99. In fact, 36 of the top 100 cost $0.99. Surprisingly, the next most popular price is $4.99, accounting for 20 of the top 100 titles. Still, the site notes that the top 10 games have an average price of $1.89, so it would seem that cheaper is better, at least in terms of sales volume.
If you want to get away with a higher price, it helps to have a game based on an established console IP. The study notes that such titles have an average price of $6.12. It also mentions that the exact method Apple uses to sort apps in the top 100 is shrouded in secrecy, meaning that it's difficult to draw hard conclusions from the data. The actual sales numbers aren't published by Apple either. Thus, it's impossible to tell if a game with a higher price point is earning more than a cheaper game with a higher sales volume.
There's a lot of data to look over in the study and it's definitely worth a look for those interested in the business side of the games industry.