Apple on Wednesday announced two new App Store price tiers for iOS developers selling wares in Canada and New Zealand, enabling lower digital content costs for consumers and flexibility for app makers.
The new "Alternate Tier A" and "Alternate Tier B" allow developers to price paid and in-app purchases at 99 cents in both Canadian and New Zealand dollars. Apple notes current apps already using the price tiers have been automatically updated.
Today's App Store change is a side effect of quickly shifting macroeconomic winds. In October, Apple introduced the Australian market to alternate price tiers, and the program is already active in select countries around the world. China, for example, was among the first to support lower prices, followed by India, Indonesia, Mexico, Russia, South Africa and Turkey.
Developers based in Canada and New Zealand can get more information on App Store pricing in the Pricing and Availability section of My Apps on iTunes Connect.
Volatile international stock markets, a strong U.S. dollar and other financial factors prompted Apple to take steps toward protecting itself and consumers. For example, the company raised iPhone and iPad prices in Germany to offset a new copyright levy in that country.
10 Comments
Lowering prices and undercutting the competition is a sure road to increased profits. Go Apple!
After Apple raised it's prices on apps sold in Canada I have been very selective on what I might purchase from or on MAS or on iTunes. Some apps are not worth the exchange that Apple was demanding.
Maybe you're not explaining it correctly, but this just sounds like marketing BS to me. All the prices in Canadian and Australian App stores as well as all Apple stores are going UP, not down, whereas this reads like the exact opposite of that, which is likely what was intended.
It seems very deceptive and deceitful to me. It's essentially telling developers to "take the hit" for Apple's higher prices.
"You're App used to be $.99, but we raised the price, so you can now re-price it at $.99 which would be $.60 cents in reality."
Customers are happy because the price rises are hidden from them, Apple is happy because they don't make a single cent less.
Developers can choose between looking like assholes with high prices, or cutting the price of their product by 40%.
Absolute bullshit. Apple should be ashamed.
The whole software model has been decimated by the advent of the App Store. If software wasn't valued before, it certainly isn't valued now. People whinge about paying 99 cents for an app. 99 cents. Unreal.
It may not have been Apple's intention but it's played out exactly the same way as the iTunes store did.
It is my thesis the Apple has in general destroyed the value proposition for both music and software. I'd be curious to see whether DED could offer a compelling counterpoint. No doubt Apple have paid billions out of the app store and itms but the vast majority of that revenue has gone to a handful of major players such as to make that gloat essentially worthless.
/rant