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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

#41
post #11

I wonder if more apps will go for, say 50¢, instead of free + $1.00 IAP. I miss the pre-IAP days.

Isn't this IAP model better for both users and makers?

Let’s not pretend that the App Store is full of Indy “makers”. It came out in the Epic trial that 85% of App Store revenue came from slimy pay to win games and loot boxes.

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

#42
post #12

“The team has been hard at work this week and we’re now happy to announce that the number line has even more numbers available in it.”

You have to hand it to the bean-counters for finding a new way to butcher their cash cow.

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

#43
post #11

I wonder if more apps will go for, say 50¢, instead of free + $1.00 IAP. I miss the pre-IAP days.

IAP is fine when I as a user am not sure.

To install, try and pay is as easy as to pay, install, and try

To install, try and uninstall is much easier then to pay, install, try, uninstall, and ask for the money back, if the latter us even supported.

What's really bothersome is no option to pay and remove ads. A subscription may be more costly but it's at least honest, and UX is not annoying.

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

#44
post #27
post #19

Actually what the motivation in having price point ending in .99? Why can't I simply price my app at, for instance, 10? I understand there is a pricing psychology in play and I faintly remember it has something to do with accounting but I can't recall the specifics. Can anyone shed some insight?

The psychology is (allegedly) simple. When you see a price like $4.99, unless you're pre-conditioned, you are expected to read it as FOUR-99, essentially $4, even though it's $5 for all practical purposes. Often it is styled as $4.⁹⁹ to double down on this effect. This looks silly, and many people, including me, have taught themselves to recognize this pattern and round the price correctly without a mental effort. So…

How can it be that anyone in the world falls for this anymore? My daughter recognized this obvious pattern when she was 7 years old: "It's $5, dad, why don't they just say $5?" I wonder if pricing something at $4.99 have anything more than a vague subliminal effect these days?

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

#45

Genuine question: is there a market for a $10,000 app?

Highly niche and specialised apps could set such price points. Medical apps come to mind.

I’m not aware of many apps like those that aren’t done via a B2B licensing agreement outside of the App Store.

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

#46
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.

> Then again, at this point, Apple is a treasury operation that also sells phones and computers. I'm guessing you are joking but incase you were not, Apple still makes far far more from selling new products than they do from investments. So that statement is false or misleading.

By investments do you mean App Store commissions? They do make quite a lot from that. Not more than they make on hardware sales, but it's a pretty substantial fraction of their revenue.

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

#47
post #5

This seems like a smart move from Apple to continue expanding into international markets and increasing revenue potential from their subscription models. Offering a wider range of price points will allow developers to better tailor their pricing to different markets, and it will also give consumers more flexibility when choosing which apps to pay for. It'll be interesting to see how this change affects the App Store…

Thank you, ChatGPT!

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

#48
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 the other 174 storefronts and 44 currencies. Developers will still be able to define prices per storefront if they wish. The pricing capability by storefront will expand to all other apps in spring 2023."

Additional capabilities are noted in the announcement.

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

#49
post #27

Earlier quoted context omitted.

The psychology is (allegedly) simple. When you see a price like $4.99, unless you're pre-conditioned, you are expected to read it as FOUR-99, essentially $4, even though it's $5 for all practical purposes. Often it is styled as $4.⁹⁹ to double down on this effect. This looks silly, and many people, including me, have taught themselves to recognize this pattern and round the price correctly without a mental effort. So…

How can it be that anyone in the world falls for this anymore? My daughter recognized this obvious pattern when she was 7 years old: "It's $5, dad, why don't they just say $5?" I wonder if pricing something at $4.99 have anything more than a vague subliminal effect these days?

Everyone is absolutely consciously aware of it, and this has always been true. It still works just fine via your subconscious.

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

#50
post #27
post #19

Actually what the motivation in having price point ending in .99? Why can't I simply price my app at, for instance, 10? I understand there is a pricing psychology in play and I faintly remember it has something to do with accounting but I can't recall the specifics. Can anyone shed some insight?

The psychology is (allegedly) simple. When you see a price like $4.99, unless you're pre-conditioned, you are expected to read it as FOUR-99, essentially $4, even though it's $5 for all practical purposes. Often it is styled as $4.⁹⁹ to double down on this effect. This looks silly, and many people, including me, have taught themselves to recognize this pattern and round the price correctly without a mental effort. So…

And then there are gas stations, infamous for taking it another step and including another tenth of a penny.
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