App Store Delivery Lets Apple Slash Lion Pricing

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jun 8, 2011.

  1. macrumors bot

    MacRumors

    Joined:
    Apr 12, 2001
    #1
    [​IMG]


    Apple's Mac App Store-only strategy for the release of OS X Lion has brought consternation to some, particularly those in rural areas without reliable high-speed Internet and folks in enterprise and educational IT departments. However, for a large group of Mac users -- those outside the US and Canada -- the Mac App Store is a boon for the wallet.

    Apple made significant price cuts to Lion compared to what the company charged for Snow Leopard. Because the price didn't change much in the US or Canada -- it rose 3% from $29 to $29.99 -- we can assume the main reason for the change in pricing is cost savings from digital delivery.

    [​IMG]

    To get pricing for Lion and Snow Leopard, we examined each country's Apple Online Store and Lion launch pages. Some countries we looked at, notably China, Hong Kong and South Korea, had no pricing announced for Lion so we skipped them.

    [​IMG]


    Pricing was compared within individual countries so any VAT or taxation should be identical.

    Article Link: App Store Delivery Lets Apple Slash Lion Pricing
     
  2. macrumors 604

    thejadedmonkey

    Joined:
    May 28, 2005
    Location:
    Pa
    #2
    Don't most software publishers that sell software on shelves only get like 20% of the sticker price? so for a $129 piece of software, Apple would only get $25.80.. so one could argue that with the digital delivery, Apple actually raised the price.

    But since they passed the savings along to the consumer, it's a win for us all :)
     
  3. macrumors 65816

    WiiDSmoker

    Joined:
    Sep 15, 2009
    Location:
    Hermitage, TN
    #3
    no
     
  4. macrumors 601

    Eddyisgreat

    Joined:
    Oct 24, 2007
    Location:
    Seattle, Wa
    #4
    The japanese should be able to download OS X Lion and indeed the entire app store in a matter of seconds with their FTTB (Fiber to the Brain), so the cost is somehow lower ;)
     
  5. macrumors 68020

    inkswamp

    Joined:
    Jan 26, 2003
    #5
    I'm happy. I said once before, when this was only a rumor, that if Apple were going to expect the usage of my Internet connection to distribute their software, it should come at a significant discount (a point that was argued down by a few commenters here.) Glad to see Apple agrees with me. :D
     
  6. macrumors member

    Joined:
    Feb 15, 2010
    #6
    calibrated for exchange rate differences between then and now?

    calibrated for exchange rate differences between then and now?
     
  7. macrumors regular

    Joined:
    Jun 18, 2007
    #7
    They should make a boxed copy a luxury item that can be ordered over the phone or online that can be mailed to those that live in low speed areas.
     
  8. macrumors 65816

    Joined:
    Aug 18, 2005
    #8
    I think the main reason for comparative 'savings' is exchange rate. whenever apple releases a new product, the prices are fixed at US prices and the current exchange at that time.

    Products go up and down in price. For example, the iPhone 4 in NZ was slightly cheaper than the iPhone 3GS at respective launches. I remember one year the MacBook pros increased in price by 20-30% but dropped again in the following refresh.

    I assume that's why 99c songs and 99c apps aren't the same prices in non-US stores.
     
  9. Le Big Mac, Jun 8, 2011
    Last edited: Jun 8, 2011

    macrumors 68020

    Joined:
    Jan 7, 2003
    Location:
    Washington, DC
    #9
    Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_3 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Mobile/8J2)

    It's ridiculous to conclude that the lower price is solely from online delivery. There's no way it cost Apple $100 tondistribute a DVD.

    No the difference is a change in business strategy to get new OS updates into users' hands at a more affordable price. Why? Because Lion add to the system lockin attributes of the Mac ecosystem.
     
  10. Moderator

    Nermal

    Staff Member

    Joined:
    Dec 7, 2002
    Location:
    Whakatane, New Zealand
    #10
    Between then and the launch of the App Store, by the look of it: The NZ price of $38.99 correlates with the price of apps (NZ$1.29 for a US$0.99 app, NZ$38.99 for a US$29.99 app). Presumably they match up using the appropriate ratios in other countries too.
     
  11. macrumors 68030

    Joined:
    Dec 24, 2010
    Location:
    Winnipeg MB
    #11
    Hate to nitpick, but the US rates do not include applicable sales tax to states where Apple has physical presence. Still, no complaints about the pricing here :)
     
  12. macrumors newbie

    Joined:
    Feb 5, 2008
    #12
    Mexico

    It decreased 16% in Mexico, from $419 pesos (Snow Leopard) to $360 for Lion. :)
     
  13. macrumors newbie

    Joined:
    Jun 8, 2011
    #13
    Japan SL pricing...

    ...is actually ¥3300, not ¥4400. Always was.
     
  14. macrumors 603

    notjustjay

    Joined:
    Sep 19, 2003
    Location:
    Canada, eh?
    #14
    Despite the fact that I don't understand your last sentence at all, I agree -- the cheaper updates means more people will upgrade which puts more Macs at the same level. Adoption of new APIs and core services will go faster as a result.
     
  15. macrumors newbie

    Joined:
    May 18, 2010
    #15
    Family Pack

    Except -- the price actually dropped much more than this. These prices (at least the US price, presumably the others) are for the single user pack. Lion only comes in the family pack now (all app store downloads can go on 5 machines), so the price actually dropped in the US and everywhere from $49 (or whichever) to $30. That's a $19 price drop in the US -- 38%!
     
  16. macrumors 6502

    Joined:
    Nov 10, 2005
    Location:
    New South Wales, Australia
    #16
    It doesn't seem to be. It was set at AU $39 back when the Aussie Dollar was only about 80c. Now it's $1.06, so the price is basically the same. To us it's a saving, but compared to what is being paid stateside, it's no different.

    I think the person who analysed this has forgotten that the USD has lost a heap of value since SL came out.
     
  17. macrumors 65816

    skellener

    Joined:
    Jun 23, 2003
    Location:
    So. Cal.
    #17
    So if you have a business that is all Mac, say 100 machines, $29.99 U.S. covers the upgrade for all of them to Lion???
     
  18. macrumors 6502a

    igazza

    Joined:
    Aug 7, 2007
    Location:
    earth
    #18
    the single user pack can still be installed on 5 computers. :p
     
  19. macrumors regular

    Joined:
    Feb 11, 2010
    #19
    huh?

    where did you get the 20%. not from places i've worked or friends have, but based on an assumption you make, apple is "raising" the price?????

    if you used to pay $129.00 for software and you now pay $29.00 what kind of math are you using that says the price has been raised????

    i try to read apple posts for info that teaches me something from experienced developers, power users or people who have some insights, but i just don't follow this kind of post.
     
  20. macrumors 6502

    Joined:
    Nov 21, 2010
    #20
    So is it confirmed that it will be ONLY on the App Store? I want a disc...
     
  21. macrumors G5

    nagromme

    Joined:
    May 2, 2002
    #21
    By my napkin math, if the Lion download resumes reliably, it should be perfectly possible to get Lion by dial-up in just 8 hours a night... for a month! :eek:

    Offering a thumbdrive or disc (at higher cost) would be nice for people stuck on dialup, and there are a lot of people in that situation. Some of them don’t have a laptop, and can’t just make an extended trip to a WiFi hotspot.

    Maybe Apple needs to have a fleet of Lionmobiles, broadcasting high-speed WiFi to small towns for a day at a time! Everyone can huddle around the van watching the progress bar.
     
  22. macrumors 604

    thejadedmonkey

    Joined:
    May 28, 2005
    Location:
    Pa
    #22
    Ok, not that Apple is raising the price, but that Apple is making more per sale. And I got that figure from a game developer forum. I don't know what it's like for software from a company like Apple, but I know game developers get screwed, and even when it comes to physical goods, 50% is markup from the store, then there's 50% to split between costs, manufacturing, and profit, so 20% seems descent.
     
  23. macrumors 6502

    Joined:
    Nov 21, 2010
    #23
    Doesn't 1 App Store purchase cover up to 5 computers?
     
  24. macrumors regular

    Joined:
    Jan 9, 2009
    #24
    Completely agreed. The price is low because $29.99 or thereabouts is a good psychological price point and Apple doesn't care one bit how much money they make from the distribution and sale of OSX.

    It's a very clever way to ensure that the majority of existing Mac users activate an account and associate a credit card with the App Store. I imagine App Store penetration has been very low thus far - but once you've put in your payment info and used it to download Lion, I'd say the likelihood of eventually buying more software through that channel rises significantly.

    $30 is the perfect price in terms of perceived value - high enough that people think they are buying a quality product (there is often a negative association with "free"), and low enough that most will upgrade without a second thought.

    The idea that savings from physical distribution factored in at all is laughable. Snow Leopard was already being sold at a great loss - There's no way $30 a pop comes close to recovering the development cost. They just don't care, because OSX is developed solely to drive hardware sales - not be a viable business on its own.
     
  25. macrumors 6502

    Joined:
    Aug 23, 2009
    Location:
    Vancouver, BC
    #25
    Saving to disk

    So will the file we download be able to be saved and burned to a disk by the users?
     

Share This Page