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Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

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Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#271
post #213

Earlier quoted context omitted.

The economics of all of that seem sketchy to me. It sounds like the main North American market is subsidizing the apps being produced and sold worldwide. Does the same logic apply for other virtual good such as digital music elsewhere?

It's really the opposite, it's a form of price discrimination. There's a theory of surplus in economics, which is the extra benefit that someone gets from a transaction above what they would have been willing to pay. If I buy a game that I would have paid $100 for for $50, then I have a "$50" consumer surplus. One the other end, if the producer was willing to let that game sell as low as $40, then they have a produce…

> People with lower incomes aren't as willing to pay high prices for games.

It's a bit deeper than that, let me share my perspective of purchasing software in a developing country.

Growing up I remember that video games only picked up in popularity when you could "buy" pirated games. For reference, I'm talking about the Nintendo Wii era and those were about 1-3 USD each for a CD with the pirated version of the game. Also for reference, right now a Nintendo Switch game (that costs $60 MSRP in the US) sells for about $90 due to taxes and stuff [1].

To me, there's two significant issues with that: 1. People don't feel like they are stealing when buying pirated goods. They are spending their hard-earned cash into something they want/like, and that's as far as their reasoning goes. This happens for other software like Photoshop too, and even physical goods. I remember buying fake yu-gi-oh cards knowing they were fake, but that's the only ones that were available and that I could afford. I had a few legit ones and I treated them as a treasure, in the same way you treat your fancier clothes better than your normal ones. 2. You can have a full meal in a diner for about $3 in my country, desert and all. If you want to sell food, that's how low you have to go because that's what people can afford. A $10 dollar meal is normal in the US, but here it would be a luxury.

Now, that combination is very problematic as you can expect. People do want to pay for stuff, and to their minds that's what they are doing. To me, selling pirated goods is as scummy as it gets, but I cannot blame someone for buying it when it's their only choice.

So for most companies, having "regional" prices on this markets is the difference between selling or not.

[1] Not exagerating at all, google `700 GTQ to USD` and then this https://www.max.com.gt/juego-nintendo-switch-pokemon-violet-...

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#272
post #213

Earlier quoted context omitted.

It's really the opposite, it's a form of price discrimination. There's a theory of surplus in economics, which is the extra benefit that someone gets from a transaction above what they would have been willing to pay. If I buy a game that I would have paid $100 for for $50, then I have a "$50" consumer surplus. One the other end, if the producer was willing to let that game sell as low as $40, then they have a produce…

>Now, you could call it subsidizing in that there are probably products that wouldn't be brought to market without the NA market to pay for them, but that's not really "subsidizing". That's every product ever made for profit by a developer in a 1st world country. It's still essentially subsidizing even if you don't like the optics of the word.

Depending on the specifics of the business model (e.g. is the marginal good sold paying primarily for the up-front investment, or for the per-item costs), you can sometimes call it "NA subsidizing everyone else", or in other cases "vendor overcharging NA customers because they're wealthier on average", or in yet other cases, "selling at the local market rate".

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#273

Earlier quoted context omitted.

Thank you for clarifying this. This is such an Apple thing to do. Frankly it doesn't matter what the exact price is. All economics are approximate.

I don't think that's a bad practice. I'm Russian and Steam games are (were) 1.5x-2x times cheaper for Russia compared to Europe and Americas, even before regional passes. I don't know whether that was responsiblity of devs or storefront, but it seemed quite a fair and profitable practice, because the price point you are willing to pay for a game (or an app) is different for people from different economical and cultur…

From what I understand, the Russian market has a lot of tech-savvy users but disposable income is lower. If you didn’t price your app for the Russian market, it was more likely to get pirated or cloned. Similar caveats in certain parts of eastern Europe. At least, that was the justification I’ve heard.

Different story in places like Africa, where you often make a completely different app to contend with things like data caps and slow networks (e.g. Facebook Lite).

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#274

Earlier quoted context omitted.

What could a third party add to a primary-source's press release other than speculation? Sure in some cases there could be some "sources say..." or "when reached for comment Apple clarified that..." but in general I think its going to be a rehashing and speculation in general.

Context.

Added context by 3rd parties has a strong tendency to either add more fluff or replace the biases of the company with the biases of the particular article not just clarify. One benefit of reading the direct press release is you at least have a clear understanding going into it that the company is going to be biased towards itself. Couple that with having every bit of new information released unfiltered and it's why I prefer starting with the press release then building context instead of trying to get both at once.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#275
post #165

We changed the URL from https://www.apple.com/newsroom/2022/12/apple-announces-bigge... to a third party article I just googled. If there's a better third-party article, we can change it again. Yes, HN has the rule "*Please submit the original source. If a post reports on something found on another site, submit the latter" ( https://news.ycombinator.com/newsguidelines.html ), but corporate press releases are so awful…

I know it's breaks schema but I feel like a post should be able to have multiple URLs associated with it.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#276

So much Apple cynicism here. Apple loves design and beauty. Crisp numbers and stability are more user friendly and aesthetic. Also some numbers have implications in certain markets. Seeing numbers like or $69.42 or $444 or $7.23 is just bad all around. International price conversion while maintaining those is also challenging. Before attacking Apple policies, it's worth considering why their extremely deep design pro…

But take your choice: x.99, x.90, x.95. Beautiful design.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#277
post #165

We changed the URL from https://www.apple.com/newsroom/2022/12/apple-announces-bigge... to a third party article I just googled. If there's a better third-party article, we can change it again. Yes, HN has the rule "*Please submit the original source. If a post reports on something found on another site, submit the latter" ( https://news.ycombinator.com/newsguidelines.html ), but corporate press releases are so awful…

I don't know the mechanics of this or if it would just be manual, but when there is aggregation of submitted links (which I would assume is the case for a story like this), it does seem like the main PR link should be the title URL, but could other links all just be collected in a single comment? I really prefer the actual PR links myself, corporate BS or not, because that gives me the language I need to then search…

Maybe the policy should be that whichever page is chosen should at least link back to the main PR source, so you're only one step away from getting there.

In this case the page links the PR prominently in the first line of copy, so that seems OK.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#278
post #202

Earlier quoted context omitted.

You would think a company like Apple could easily build a system that updated exchange rates daily and could do the simple math on any price. Having "price points" seems arbitrarily and stupid.

Price points smooth the exchange rate fluctuation (how often should the prices be updated? Every second? More often?) and selects for prices that have certain cultural"gravity" as well. I think buyers are more accustomed to and comfortable with "round" or "standard" prices like x.99, x.88, x.95, x.00 etc rather than x.47 or x.31.

Exchange rate fluctuation I think could be handled perfectly fine without price points but the price point "gravities" is a really good reason to use the system. Not sure why it should limit developers to that system but it certainly makes the system attractive/useful for many.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#279
post #165

We changed the URL from https://www.apple.com/newsroom/2022/12/apple-announces-bigge... to a third party article I just googled. If there's a better third-party article, we can change it again. Yes, HN has the rule "*Please submit the original source. If a post reports on something found on another site, submit the latter" ( https://news.ycombinator.com/newsguidelines.html ), but corporate press releases are so awful…

What could a third party add to a primary-source's press release other than speculation? Sure in some cases there could be some "sources say..." or "when reached for comment Apple clarified that..." but in general I think its going to be a rehashing and speculation in general.

Translation from corporate-speak to english.

Re: Apple announces ‘upgrade’ to App Store pricing, adding 700 new price points

#280
post #96

Earlier quoted context omitted.

I think that would be better covered by a "one time purchase" option. Otherwise, you're asking for either a "starve the dev" category, or something shadier like "show all apps that monetize my location".

There are models that work with barely any ads and subs. Google Maps is a great example.

Google Maps has heavy monetization of location.
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