Microsoft tells developers to price their apps high

Software behemoth Microsoft is encouraging developers to charge a little more for their applications, as it keeps its eye out on the success of Apple’s iPhone.

According to a report on Tech Flash , Microsoft wants to promote revenues rather than downloads to decide the winner of a competition its holding called the Race to Market Challenge.

The report quotes Loke Uei of Microsoft’s mobile developer division as saying that while people like to pay 99 cents for applications, applications should be worth more than that.

He probably has an eye on applications such as the Tom Tom iPhone app , which was launched earlier this week for $99.99 – or $100 if you add a cent for marketing.

Microsoft will soon launch the Mobile Marketplace and is obviously determined to continue to compete in the smartphone market.