It’s no longer enough for developers to make the top 10 the first week of release. Now they need to stay in the top 10 for weeks on end if they want to make the same amount of revenue. As a result, developers of paid apps are going to have to look at freemium and other IAP models to supplement their costs.
I’m fairly skeptical that IAP and freemium, hell even outright paid, models are the right answer for making any money in the app store. I think Marco Arment is closer to what makes for actual success: something not just better, but a lot better, than the existing apps.
No matter what the business model of your app, if it is good and you can get the word out about the app, then rest assured you can make money. But making an app much better than the existing apps and getting the word out are not easy things — not even remotely easy.
There are, I have to believe, a lot of great apps hidden in the dungeon of the app store — apps that I would probably love. But how do you find out about them? If you can answer that, I think you can find success in the App Store.