Earlier quoted context omitted.
If you build a good app for $20.00 then somebody might clone it for $2.00. But, will they survive on their clone? Probably not, if they are living in a rich country. You just need to outlast these cheap knock-offs until their developers get bored and move onto something else. It might be a constant stream of knock-offs, but the longer you last, the better the reputation you build. Reputation is worth a lot , especial…
Right, but the same could be said about the USA. My monthly burn is much higher than $1000 :-( BUT, living in rural Minnesota as I do, it really isn't hard to lower your living cost below $1000 if you want to and are single (When I lived in the city of Minneapolis, my monthly bills including mortgage totalled probably around $1,500). Being American and living here in the US gives me a huge advantage on understanding…
Regarding competition from our foreign friends: I think we are both thinking the same way here. Right now, we don't really have to worry about ultra-cheap competition too much. Eventually, I think we will--the cultural advantages you speak of are a short-term advantage, not a long-term one. My Thai friends already know a lot about Western culture because they deal with us all day long in Thailand. Whatever they don't know, they can learn. But, almost none of my Thai friends could afford to buy an iPhone right now; even if they could, they work 80 hours a week at their job so they wouldn't have time to develop anything for it. But, slowly, all of that is changing.