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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

#331
post #230
post #192

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This is fair. OTOH, you have the single European market (the EU forces games, apps, hardware, etc to be sold at the same price everywhere in the EU in practical terms), which has shafted poor countries-it's disgraceful that a Swedish costumer pays the same price for an iPhone than a Portuguese costumer while making several times as much money every month.

> OTOH, you have the single European market (the EU forces games, apps, hardware, etc to be sold at the same price everywhere in the EU in practical terms), That's not true, where are you imagining this from? Hardware certainly doesn't cost the same, at the very least there are different VAT levels, but also pricing is adapted to the local market (literally just checked, i can get an Asus ROG Zephyrus G14 for 300€ le…

> i can get an Asus ROG Zephyrus G14 for 300€ less in Bulgaria compared to France

This is insane. What prevents grey market arbitrage? Why wouldn't hardware from the country where hardware is cheapest immediately get posted on the local equivalent of eBay in the country where it is most expensive?

In any case I had no idea hardware margins were so squishy. For software, yes, profits are maximized by reducing unit prices where incomes are lower (since otherwise you won't sell any), but that's enabled by the fact that the marginal cost of unit production is very nearly zero and you're still making money even if you sell it for 25% of the rich-country price. That's obviously not the case for a laptop

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

#332

Earlier quoted context omitted.

Shouldn't that work for any price you give them? It's literally a multiplication with a number they pull per-day as the conversion rate. That wouldn't change if the price wasn't one of "their" numbers...

This means that for foreign customers of yours, your product will have constantly fluctuating price. I personally don't find that desirable. Also, there is some considerations to be made for purchasing power especially for items like apps. $1 might be trivial in the US, but it may not be so in a third world country.

Apple obviously uses some conversation rate internally when creating and updating these pre-defined tables. They could use those same numbers, with the same update frequency, with an arbitrary input price.

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

#333

Earlier quoted context omitted.

Apple uses price points rather than having developers explicitly specify prices because they're currency-independent: you specify a price point and Apple chooses appropriate prices for each of the ~175 different storefronts where your app could be available. Apple then periodically adjusts the international prices as exchange rates fluctuate, to keep them in parity with the US prices at the same tiers. The alternativ…

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.

Indeed. It’s a very smart thing to do. Basically a Big Mac index approach.

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

#334
post #4

10x the number of price points is nuts. Then again, at this point, Apple is a treasury operation that also sells phones and computers.

> 10x the number of price points is nuts. When you RTFA, you'll learn that Apple is also making it far simpler to manage their app pricing in 45 currencies/175 storefronts. For example: "Starting today, developers of subscription apps will also be able to manage currency and taxes across storefronts more effortlessly by choosing a local storefront they know best as the basis for automatically generating prices across…

I’m confused because this is how it already worked. Unlike regular purchases, subscription pricing was always managed by choosing a price in one territory, letting it recommend prices for all the other territories (based on the exchange rate at that date) and giving you the option to make final adjustments. The prices never adjust for exchange rates afterwards unless you re-run the process manually. This was required because fluctuating prices are bad for subscriptions as customers get locked in.

So I don’t understand what’s different here.

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

#335

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.

I want to be able to offer clearance prices (x.97).

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

#336

Earlier quoted context omitted.

It's not really. The US medical system has this tendency to inflate pricing in a cat-and-mouse system where drug companies and insurance companies try to duke out what is the "correct" price of a drug. Setting it too high and the insurers won't cover it, too low and the pharmaceutical companies are "losing" profits to insurers. It's a terrible feedback loop that hampers those who can't afford insurance because the pr…

I think youre missing several inputs into your feedback loop. The original statement about the US system bearing the brunt of development stands. It's also true that insurers influence the market. Both are true. There are also government inputs into the market, political inputs a d supply chain elements that all feed into this. The one stakeholder will little real input in the end consumer who gets stuck paying whate…

That doesn't explain the behavior of off-patent drugs being jacked up in price on a whim or near identical variants being made to extend patent protection and maintain the predatory pricing of the name brand. Their development costs are already recouped during the initial patent phase. Tweaking things a little doesn't cost them nearly as much.

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

#337
post #310

Earlier quoted context omitted.

"quoting prices without tax which tends to be illegal elsewhere" Cui bono? Personally, I like that US citizens are constantly reminded how much flesh the State is extracting.

Quoted post unavailable.

To be fair, Americans (and anyone else) are right to resent sales taxes. And I’m saying that as an American who’s far to the left of what some call “socialism” in Europe. Sales taxes are highly regressive, disproportionately impacting those least able to afford them.

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

#338
post #170

Earlier quoted context omitted.

Depends on the location. Sales taxes are determined at the state, county and municipal level and apply to different things in different places (so, for example, Illinois does not charge sales tax on magazines, but California does, and the tax rate on a single donut may be higher than the tax rate on a dozen donuts (prepared food vs groceries).

> the tax rate on a single donut may be higher than the tax rate on a dozen donuts It’s even worse than that, which I learned unfortunately at a former employer. Two identically priced dresses could have different tax rates based on the formality of one vs the other, ie one being a simple LBD and the other being a sequined evening gown.

Does that apply to sales tax or import duties though? I’m not aware of any jurisdiction which has different sales tax rates for different types of clothing. Import duties are a whole other can of worms (in some cases, products are partially disassembled before crossing the border to lower the import duties and then reassembled after import).

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

#339

Earlier quoted context omitted.

Not even close. They semi-arbitrarily came up with prices they allow in the App Store, probably “justifying” it using some metrics, or your app will be rejected.

Long time ago I used to work at Apple so not sure if it's still accurate. But originally the App Store was leveraging their existing payment infrastructure e.g. the one they use for iPhone sales. Purchases and invoices were done through SAP which was manually configured to support those price points. It's why you saw weird behaviour e.g. invoices for free app "purchases" and largely the limitations of that system dro…

Thanks for the story! When app and itunes stores first went live I remember getting these odd invoices at times and speculating with work friends about stuff like this!

OH YEAH, APPLE IS PROBABLY USING SAP ON THE BACKEND!!!!!!

NO WAY DUDE THEY WOULD NEVER DO THAT!!!!!!!!!

Good times.

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

#340

So, never having bothered with Apple hard-/software I am a bit confused... A developer can't just set a price for something? But then out of the first 10000 natural numbers, Apple semi-arbitrarily select a set of 900 "known-good" numbers that work well for prices? Like, as if the other numbers are somehow bad prices? If you charge someone $7,43 for something, the ghost of Steve Jobs will start haunting you? That's, l…

Apple uses price points rather than having developers explicitly specify prices because they're currency-independent: you specify a price point and Apple chooses appropriate prices for each of the ~175 different storefronts where your app could be available. Apple then periodically adjusts the international prices as exchange rates fluctuate, to keep them in parity with the US prices at the same tiers. The alternativ…

Since you seem to know a bit can you set which countries/regions have access say something like "only north america and Africa" ? Not an apple dev so I don't have a clue.
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