Apple enables lower App Store price tiers in Canada, New Zealand

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.

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10 Comments

stevie

said about 8 years ago

Lowering prices and undercutting the competition is a sure road to increased profits. Go Apple!

HydroMac

said about 8 years ago

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.

Mr_Grey

said about 8 years ago

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.

djsherly

said about 8 years ago

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

lolliver

said about 8 years ago

Mr_Grey said:

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.

What on earth are you talking about? What do you mean "Apple doesn't make a single cent less" and that it's "Apple's higher prices". Do you have any idea whatsoever how currency and exchange rates work?
Apple increases the price of Apps in countries where the value of their currency has decreased substantially so that the App developers are able to continue making a comparable amount on the sale of each app as they were prior to the value of the currency decreasing.
Because this results in customers in those countries having to pay more for the app than they were previously there is the potential for this to result in reduced sales. Therefore Apple allows developers to set the price of their apps lower in those countries to ensure sales continue. It's entirely up to the developer if they choose to do this or not. If they do set their app at the lower price tier then yes they make less money on it from each individual sale but so does Apple. What makes you think Apple would still be able to get the same amount of money from each sale when they are just keeping 30% of that sale? Do you understand how % works or is that as baffling to you as currency and foreign markets?
There are some great educational apps on the App store for teaching mathematics. Maybe you should consider investing in a few? Especially if the developer has chosen to make use of the alternate price tier. ;-)