Raise the price. For the love of god. Raise the price. This is much, much more valuable than five bucks. There have been times in life where I'd gladly have paid a dollar per minute for this. And I'm a cheapskate.
Absolutely, read http://bit.ly/bdHKmm to understand why. (Sorry for the shortened URL, the URL recognition software here doesn't understand URLs with apostrophes in here, so it actually is necessary.)
Something like this should not be $5.
We have a lot more Vietnam refugees here than we do Chinese folks. If you'll notice, the three main languages you can get government papers in (at least over in San Jose, no experience elsewhere) is English, Spanish, and Vietnamese.
Incidentally, there's other and easier untapped startup opportunities for the Asian language demographic, if anyone wants to send me a note via gmail
My in-laws are a mix so either language is good, both is better. I can promise 3 Android and 1 iPhone sale just in my home :)
The dictionary is free and the OCR is available as an in app purchase for $15.
I'm just saying this because it is not trivial to adapt an OCR engine to non-latin scripts, because the image analysis techniques are rather different.
I understand that Chinese is harder, for many reasons. It is also much harder for humans. But that is why I'd happily pay, say, $10 per day of my trip for an engine that gives reasonable hints. Maybe more. Try me and see.
Of course, once this technology is ubiquitous and the price of such a thing has fallen to nigh-zero it is going to change the world. But we have to walk before we run, and you'll need the money for R&D and legal costs.