Apple Increases App Store Pricing in Mexico, Denmark, and Countries That Use the Euro

[pmau]

I'm already expecting a 1200€ iPhone 8. You might find this ridiculous, but I do believe it will come with a major price increase and its availability will be constrained like crazy.
Welcome to the decline of civilization and culture.
Just a fee more years of greedy elitism and the US and Europe are done.

 

[willybNL]

Apple citing changes in foreign exchange rates as the reason behind the price hike.

Could someone explain this? As I buy an app developed within the EU, buy it at iTunes SRL (European company in Luxemburg) and I buy it in the EU, how can there be a 'foreign exchange rate'?

 

[bruceosx]

Well, Apple must somehow compensate the recent $1000 price drop for the Mac Pro!

 

[coolfactor]

This is Tim's idea. Greedy miser.
Any excuse to raise prices. If the EURO appreciates significantly will the prices get lowered. Hell no.

I think that's my biggest beef... that when things adjust the other way, do those of us outside the USA see our prices being adjusted accordingly? No. They only ever go up and stay up.

EDIT — I know this just a currency adjustment, that the US prices of these apps are not going up.

 

[Juicy Box]

Apple citing changes in foreign exchange rates as the reason behind the price hike.

Could someone explain this? As I buy an app developed within the EU, buy it at iTunes SRL (European company in Luxemburg) and I buy it in the EU, how can there be a 'foreign exchange rate'?

Because Apple uses the US$. The EU app was purchased on Apple's app store. Apple felt that they are or will be losing out with exchange rate differences.

BTW, Apple doesn't need to change the price, but it is perfectly legal to do so, and common in the business world.
It just usually isn't as visible when other businesses adjust their prices.

 

[MrX8503]

Other companies raised prices too.

Microsoft raised their prices.
https://www.theguardian.com/technol...es-of-some-laptops-by-up-to-400-due-to-brexit

 

[FloatingBones]

nothing to explain, Apple wants the Service division to go up and probably ran the numbers and that's an easy one for them since it doesn't affect users

By recommending good apps, high-quality sources (like MacStories) definitely improve the user experience for users. Explain to us why you don' think cutting the commission on those recommendations by over 60% will have no impact on those high-quality reviews.

which many of them are already double dipping)

Double dipping: obtain an income from two different sources, typically in an illicit way.

Explain why you would possibly construe developers getting a commission as illicit. Finding a successful way to promote an app takes time and energy. Why do you think devs souldn't be competently reimbursed for that?

SMH.

 

[Kaibelf]

This is Tim's idea. Greedy miser.
Any excuse to raise prices. If the EURO appreciates significantly will the prices get lowered. Hell no.

Miser? It's not Apple's job to subsidize weak currencies, and it's certainly not their job to compensate for poor economic decisions that lead to that currency being weak in the first place.

 

[now i see it]

So Mexico will pay for the wall... one app at a time.

 

[thisisnotmyname]

I'm sure they will readjust these prices once Trump has adjusted USD against EUR differently

I had no idea the US President had the authority to set exchange rates. /s

 

[wschutz]

Miser? It's not Apple's job to subsidize weak currencies, and it's certainly not their job to compensate for poor economic decisions that lead to that currency being weak in the first place.

You didn't answer the question Apple's announcement clearly states that the raise is due to currency fluctuations that Apple considers will affect its accounting, hence it is reasonable to think that it will adjust the price again should that previous adjustment is not valid anymore.

However, you should consider that the EUR is not weak due to poor economic decisions, quite the opposite, it is weak on purpose to increase and ease the exports of goods and services (pretty much what the FED did with the USD soon after the crash caused by that infamous US financial firm that started it all). The markets know that the EUR's real value is much higher than now (sorry to disappoint you), so if you are considering holidays in EU... you better hurry before it gets more expensive for those who have USD.

Getting back to the topic, Apple's decision is stupid as software is not produced in this or that country, so there are no (big) payments done to developers in other currencies, and, at best, Apple can use the cash that it has all over the world in different currencies to avoid exchanging anything. So the reasoning on this does not really justify unlike with physical products.

 

[macpeach55]

Miser? It's not Apple's job to subsidize weak currencies, and it's certainly not their job to compensate for poor economic decisions that lead to that currency being weak in the first place.

The Euro is doing fine. This is just another example of Apple maximising income with poor excuses. And as the poster you quoted says, if there is ever any reversal of exchange rates, Apple do not rescind these increases

 

[agsystems]

By recommending good apps, high-quality sources (like MacStories) definitely improve the user experience for users. Explain to us why you don' think cutting the commission on those recommendations by over 60% will have no impact on those high-quality reviews.
SMH.

I don't doubt they provide a quality service but Apple is being run by bean counters and they will continue to be ruthless with their margins - not sure what anyone could do about that.

 

[konqerror]

I am baffled it took them so long...

In US you pay $0.99 + state VAT, but in EUR the 0.99€ price already includes the VAT due to legislation.

So for Apple+devs $0.99 equals the same, but 0.99€ equals just 0.79€(considering 20% VAT, but in EUR currency countries you have ranges from 18 to 24%).

0.79€ in USD = $0.86, so they are receiving less in EUR currency.

Because Europe is poorer than the US. Look at GDP per capita. US is $55.9k. That places it ahead of every Eurozone country except Ireland ($56.8k) and Luxemborg (too small to really count). Eurozone is $35k per capita.

 

[mikecorp]

well, I do not care. because I stoped buying apps and 99%apps are rubbish. Some apps are worth every penny, like Tap glance, crasrasonne the rest is crap and yes I hate advertisements.

 

[big-ted]

At least UK prices stay same...they are too high already.

Since the last price rise I buy fewer apps now, I have a monthly app budget, price rises means less are purchased

 

[mi7chy]

Probably just making up for lost marketshare rather than greed.

 

[Carnegie]

How long had the Tier 1 price been .99 € in those countries (Austria, Bulgaria, Estonia, France, and Slovakia)? Does anyone here know?

Apple usually isn't quick to raise prices following currency rate changes, it typically waits a while to (I presume) make sure the changes don't reverse quickly. But if that's been the price in those countries for a while, then Apple waited longer than I would have expected to adjust prices there. Customers in those countries have been getting a good price (i.e. relative to what customers in the U.S. have been paying) for more than two years now. At the exchange rates we've had since the beginning of 2015, they've been paying a fair bit less for apps than we have. It just goes to show that Apple doesn't rush to raise prices when the value of foreign currencies drops a little. They either have to drop a lot or the lowered rate has to persist for a while.

Also, does anyone know if the previous prices in those countries stepped up by 1 € for each tier? That is to say, was 19.99 € previously the price for Tier 20?

 

[MH01]

Miser? It's not Apple's job to subsidize weak currencies, and it's certainly not their job to compensate for poor economic decisions that lead to that currency being weak in the first place.

It is Apple's job to pay as little tax as possible, maximise profits as much as possible, and raise or lower the prices so they get the most benefit ..... so yeah, you can call Tim a greedy miser , cause that is one thing he is excelling at!

Trust me....when the tables were turned, I had to fly to New York to get the benefits of a very strong pound.....apple choose not to adjust the prices due to US poor economic decisions there is an art to being a greedy vulture ...
[doublepost=1493329172][/doublepost]

How long had the Tier 1 price been .99 € in those countries (Austria, Bulgaria, Estonia, France, and Slovakia)? Does anyone here know?

Apple usually isn't quick to raise prices following currency rate changes, it typically waits a while to (I presume) make sure the changes don't reverse quickly. But if that's been the price in those countries for a while, then Apple waited longer than I would have expected to adjust prices there. Customers in those countries have been getting a good price (i.e. relative to what customers in the U.S. have been paying) for more than two years now. At the exchange rates we've had since the beginning of 2015, they've been paying a fair bit less for apps than we have. It just goes to show that Apple doesn't rush to raise prices when the value of foreign currencies drops a little. They either have to drop a lot or the lowered rate has to persist for a while.

Also, does anyone know if the previous prices in those countries stepped up by 1 € for each tier? That is to say, was 19.99 € previously the price for Tier 20?

Another way to look at it, it's been .99 for a long time, and the exchange rates have fluctuated both ways, so balances out to be honest. Though once you increase the price, post the .99 mark, it breaks that psychological under a dollor or euro mark, potentially leading to less sales..... its penny pinching in my point of view that can backfire. normally they would be fine, though having played with an S8 today.....for the first time I can say the iPhone 7 feels very old....

 

[576316]

*exchange rate makes euro worth less* We have to increase the price of everything!
*exchange rate makes euro worth more* Decreasing the price? In your dreams!!!

Exactly why stuff like this infuriates me. Apple use the excuse of market fluctuations in order to permanently raise prices. It's despicable and really shouldn't happen. Like the price hike here in the UK after Brexit. You can bet once the GBP market calms down, the last thing Apple will do is lower prices back to pre-Brexit prices. They'll just benefit from the stronger Pound.

 

[Swift]

*exchange rate makes euro worth less* We have to increase the price of everything!
*exchange rate makes euro worth more* Decreasing the price? In your dreams!!!

When has it increased since the Great Recession more than marginally?

 

[itsmilo]

Good thing i havent paid for an App since like ever.

Either way 1.09€ looks stupid from a marketing point of view just like those updated iPhone prices a while ago ending on a random number in cents. Makes them seen like cheap fs which they are but still lol

 

[mabhatter]

Well, Apple must somehow compensate the recent $1000 price drop for the Mac Pro!

Hey, maybe there will be a new Mac Pro this year... how about a new iPhone that will ship this fiscal year.... how about new iPad Pros?..... I know, wildly popular new MacBook Pros!....

...how about just raise prices on the App Store, and DONGLES!!!

 

[Erdbeertorte]

Am I reading this the wrong way?

 

[Glassed Silver]

I had no idea the US President had the authority to set exchange rates. /s

Oh come on, you know what I mean.

Politics affect economy, economy affects trade, both of which affect the dollar.

Don't play dumb.

Glassed Silver:mac