"We're not cutting prices right now," Drew Houston, CEO of Dropbox told Re/code's Liz Gannes and Walt Mossberg at the inaugural Code Conference on Wednesday.
Houston is betting its customers will stick with them if they added new services.
In March, Google slashed prices for its Google Drive product, which now costs $23.88 per year for 100 gigabytes of storage space. The price of Microsoft's OneDrive storage product is also well below Dropbox's and costs $50 per year for the same storage volume. Dropbox charges $99 a year for comparable capacity.
"Our users go try these things and often they come back," he said, referring to Dropbox's rivals.
Still, Houston conceded that Dropbox's competitors have "narrowed the gap" on what he believed was an early head start in the category. As a result, Dropbox is spending a great deal of time on new ideas. One is a photo sharing app called Carousel. Another is a yet-to-launch collaboration tool built atop Microsoft Office called Project Harmony; Houston said it should be out by end of year.