Apple Expands Lower App Store Pricing Tiers to Canada and New Zealand

Discussion in 'iOS Blog Discussion' started by MacRumors, Jan 27, 2016.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple today followed through with plans to expand its lower pricing tier options for the App Store to Canada and New Zealand. Introduced in 2014, alternate pricing tiers A and B allow developers to charge lower prices in countries like China, India, Indonesia, Mexico, Russia, South Africa, Turkey, and Australia.

    With the new pricing tiers, apps in Canada and New Zealand can be priced as low as $0.99 (CAD and NZD). Apple first announced upcoming Alternate Tier A and Tier B pricing options for Canada and New Zealand just over a week ago, when it raised App Store prices in the two countries due to exchange rate fluctuations.

    On January 18, the Tier 1 minimum App Store price was raised to $1.39 CAD in Canada and $1.49 NZD in New Zealand. For reference, Tier 1 pricing in the United States is set at $0.99, meaning apps and in-app purchases priced at $0.99 in the U.S. cost $1.39 in Canada and $1.49 in New Zealand. With alternate pricing tiers, developers will now be able to charge $0.99 in the United States while charging a lower price in Canada, New Zealand, and the other countries listed above.
    App Store pricing was also raised in Israel, Mexico, Russia, Singapore, and South Africa, with several of those countries already able to take advantage of lower Tier A and Tier B pricing.

    Article Link: Apple Expands Lower App Store Pricing Tiers to Canada and New Zealand
  2. btrach144 macrumors 65816


    Aug 28, 2015
  3. yaboyac29 macrumors 6502a

    Sep 24, 2014

    Prices of everything is going up here due to our dollar being bad but our salaries aren't changing. That means more money being wasted for the same things we needed before (not just apps, food!)

    When our dollar finally goes back to par, we all know damn well the prices of stuff isn't coming back down with it.
  4. Rudy69 macrumors 6502a


    Mar 30, 2009
    We can't really complain, they've been pretty slow at increasing the prices compared to how fast our currency has been falling
  5. SteveJobs2.0 macrumors 6502a

    Mar 9, 2012
    It's up to the developers to pick this lower tier for the apps now.
  6. nordique macrumors 6502a

    Oct 12, 2014
    Fantastic move by Apple

    Hopefully developers follow suit
  7. KiwiAdventure macrumors 6502

    Dec 7, 2010
    New Zealand
    As long as it's not price fixing I fine with the costs.
  8. developer13245 macrumors 6502


    Nov 15, 2012
    Apple always seems to think of more ways for developers to make less money.....
  9. mw360 macrumors 65816


    Aug 15, 2010
    High earning iPhone users save a whole 40 cents, while the developer takes a 29% pay cut or worse. I'm sure they can't wait to explain that to their families.
  10. duervo macrumors 68000


    Feb 5, 2011
    Probably will go down a lot easier than the alternative: Increased number of people saying "$1.39 for THAT?!? Effff that!" = Increase number of "no sale."

    A sale at a lower tier is still better than no sale at a higher tier.

    But of course, let's all forget things like the size of the New Zealand and Canadian markets compared to the US when we try to make claims to support statements like these, because that makes absolute perfect sense. Confirmation bias at its finest.
  11. acegreen, Jan 28, 2016
    Last edited: Jan 28, 2016

    acegreen macrumors regular


    Jun 25, 2015
    So $1.39 is too much but $0.99 is ok? Just FYI: All this foreign currency is converted to USD then to your currency of choice for payout. So actually the $0.99 doesn't even end up being $0.99. Additionally Apple takes a 30% cut before all this.

    I really don't understand why people expect apps to be free. How much does an extra chicken nugget sauce at MCD cost? People have no problem spending $7+ on frappe latte mocha chai tea crap but can't try an app for $1.39? Even if its the WORST app on earth, Its ONE THIRTY NINE!!!!

    Ahh I can't help but laugh, lots of users seem to be entitled because they had to give an arm and a leg to get the phone and can't afford $1.39. o_O
  12. mw360 macrumors 65816


    Aug 15, 2010
    Not if it reduces the revenue from every other sale you will ever make.
  13. developer13245 macrumors 6502


    Nov 15, 2012
    "A sale at a lower tier..."

    Not really true when we're selling apps for $0.99 because one support email will cost several times what we make on the sale.

    Taking the attitude: "then write quality software that doesn't need support" .. is also quite pompous. Not all support emails are due to our bugs. One good example burned audio app developers: When Apple locked down the microphone on iOS by adding the alert asking to allow an app to use it, A lot of users just hit the 'No' button then wondered why the app didn't work because it caused the app to not receive audio. Many support emails were received...
  14. MrTemple macrumors regular

    Jun 11, 2013
    Vancouver Island, BC
    I find developers complaining about Apple's app-store pricing methodology and customer buying preferences to be fascinating.

    In the history of software development, can anybody point to any store or mass method of software distribution that has been as lucrative as the App Store? Or any other system that has seen such a low percent of piracy compared to such high sales?

    I wonder if this new generation of developer, the iOS developer, has seen a few mobile developers strike it rich, and now have become a tiny bit entitled to this dream of App Store riches. When the truth has always been that you don't get rich with apps that don't become crazy popular (indeed throughout most of software development history even that wasn't enough to ensure significant profits).

    If a developer doesn't want to sell an app for .99 USD, or for .99 CAD/AUD/etc, they are free to charge (roughly) whatever they want for it. The truth is that *way* more money is made (overall) when software is priced below the magic 'no-brainer' threshold for consumers. Absolutely this comes with its own issues, but the proof is in the billions and billions of dollars worth of cheques that have been printed for iOS developers.
  15. Nermal Moderator


    Staff Member

    Dec 7, 2002
    New Zealand
    That reminds me of a Weird Al song about a bad custom ringtone that he bought. "I sure don't need it, and I probably should delete it, but for me that would be crossing the line... cause I hate to waste a buck ninety nine!"
  16. developer13245 macrumors 6502


    Nov 15, 2012
    You do capture some realities of the software industry, however you miss a lot about Apple, and the mobile market in general:

    0. Apple makes all the rules - We cannot just sell anything we want.

    1. It's arguable that iOS never would have been so big if they didn't attract developers to the platform. But now that iOS has become so successful, they've added "barriers" to success by 1) forcing 5 copies for 1 sale via Family Share, and 2) removing app discoverability features from the store. The software licensing terms of mobile inherently had a higher potential because mobile phones mapped to one sale per person - this was different than one PC per household that resulted in one sale in the past - Family Share killed this.

    2. Apple has complete control over the App Store and changes terms or breaks rules at their will. Both Family Share and removal of discovery features were forced with no warning. Anki drive was a marketing only app in the store between June and October '13 until their hardware shipped - this was in clear violation of the store rules - but 50 million in SFO VC buys influence - Apple clearly picks winners.

    3. By exerting so much control, Apple has completely removed the "strike it rich" possibility for small developers. How many games were "just ok" when they first appeared on the platform, but then improved greatly from the reinvested traction they received by being noticed on the new releases list, which is now gone.

    4. Gaining "featured" status is perceived as nothing more than luck. Add that to the long history of app rejection mysteries and you have a situation that has never existed in any software market.

    5. No other platform has the app market that Apple does. Apple got the app development environment right (native code = power). But now consumers are segmented into buckets based on their need or want of apps - if they want a platform with a rich set of apps they buy an iPhone, if not, they buy droid. Sure, the big names are on those other platforms (Facebook, etc), but there is no where near the number of total apps, so claiming there is a market for mobile development beyond iOS is not really valid.

    I would not have an issue if Apple allowed us to sell anything we want directly to consumers and allowed other "stores" on the iPhone. The Mac platform has this capability. Developers have competition on the platform, so should apple.
  17. rhoydotp macrumors 6502


    Sep 28, 2006
    I don't agree much of the rest of what you have written except this last bit ... but, this also opens the door for uncontrollable flow of codes that might pose security problems into the platform. The onus will now be on individual users to discern whether the source/store is reputable or not.
  18. developer13245 macrumors 6502


    Nov 15, 2012
    "uncontrollable flow of codes"

    WTF?? I don't know why I spend time in the MR forums anymore...
  19. rhoydotp macrumors 6502


    Sep 28, 2006
    feel free to go away ... nobody is forcing you here.

    btw, read the the whole damn sentence and not snippets before having an outrage. maybe you will have less breakdowns and will stop questioning yourself of your decisions if you actually take time to read and understand. just a thought.

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