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Apple Updates App Store Pricing Structure, Adds 700 New Price Points

Highlights

  • Apple announced new price points for developers in App Store
  • Price points on App Store increased from 200 to 900
  • Prices start from as low as Rs 9 in India

Apple has restructured the pricing for App Store apps, offering more flexibility to developers. Apple has increased the price points in Apps by 700, increasing the total number of price points to 900. The changes will be reflected among 45 currencies and 175 storefronts.

Previously, Apple allowed developers to price their apps at 200 different price points. Which once started at $0.49 and went up to a maximum price of $999.

The new change makes the lowest price set at $0.29, up to a maximum of $10,000. The prices have been previously set at 99-cent cutoffs; now, round dollar pricing has been added.

In India, the lowest pricing starts at Rs 9, and it goes up to Rs 9,99,900.

Apple App Store Pricing Update in USD

Apple App Store Pricing Update in USD

Developers can keep the local currency in any storefront of their choice, even when the foreign exchange and tax rates change. For example, an Indian developer who gets the most revenue from the Indian market can set one price for the Indian market while updating the prices outside the country as the foreign exchange value fluctuates.

The new price points are already available for apps offering auto-renewable subscriptions, and they will be available for all other apps and in-app purchases from Spring 2023.

This move comes as the latest effort from Apple not only to improve its App Store but also as a reply to the complaints and demands from developers, who have been voicing their opinion about Apple having too much control over its App Store.

Apple has only changed the price points for App developers; they haven’t changed the commission charged. It still takes 15% from small developers, with bigger developers cutting 30% to Apple. Many big companies, such as Spotify and Match, have asked US courts and lawmakers to force Apple to allow them to bypass the so-called Apple tax. Fortnite developer Epic Games have even gone further, asking courts to force Apple to allow alternative app stores on iPhones.

Apple has resisted most of these legal troubles over time. In August 2021, Apple settled a $100 million class action lawsuit with developers, and it was in this settlement Apple said it would be expanding the number of App Store price points.

Apple has also been defending itself, saying that the App Store system works and often helps with the success of companies.

How does it affect you?

You might be wondering how this change affects you as a consumer. This is a backend change to the app developers, changing how the app developers price their apps.

With this change, you will now see changing prices for an app or an in-app purchase in the app. It might make some apps pricier or cheaper; you’ll have to wait for Spring next year to see the significant changes caused by this change, as when this will be available widely to all app developers.

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