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I dont mind spending a few dimes and nickels for a useful app. I have done it in iTunes before, buying a $15 iTunes gift card just to buy a $2.99 guitar app. Then, I went on buying some til I bolted out of iTunes and left a $7.99 fortune waitng to be spent. I also bought a few in the Play Store. I must admit, however, that I have not bought anything above 5$ mark. Sygic, is really tempting I must admit:-)
Going back to the question, I think out of respect to other software developers, we should pay for the apps that we think we need. That is why our clients continue to pay for the services and product we provide them, because the payment is due to us. The emergence of mobile applications has opened the doors to a lot of developers. Mind you, most of these applications in the market don't earn that much. We can not blame them for the ugly advertisements that come with their masterpiece, especially if that is the only way they will cash in some money. So if the vast amount of free apps can't satisfy your need and only a paid app will do, be kind enough and pay. Just don't forget to evaluate first before buying.