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

[Tech198]

Dam, that exchange rate.. always gets in the way of everything.

 

[faded_glory]

I'm frequently surprised over the low quality of many of the Apps available from the App Store. Many have a mere handful of reviews, often howling with complaints over quality, stability and compatibility and Apple don't seem to care. The impression is that hardly anyone buys Apps. Given that the App Store "comes with" the OS, you would have thought they'd be more diligent over its content.

 

[diipii]

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'?

Spot on.

 

[alexgowers]

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

I think that the UK price fell early on after the British EU exit vote and we were adjusted by apple at that point, this might be total speculation though. With apple paying zero income tax in the EU they have little to no leg to stand on prices increasing considering they owe BILLIONS.

 

[Vjosullivan]

I think that the UK price fell early on after the British EU exit vote and we were adjusted by apple at that point, this might be total speculation though. With apple paying zero income tax in the EU they have little to no leg to stand on prices increasing considering they owe BILLIONS.

Do you pay more tax than you need to or as little as you can? They would only "owe BILLIONS" if they broke any laws; and if they did that then the relevant revenue agencies would be all over them.

 

[dilbert99]

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 or the 30% percent they are already paying developers (which many of them are already double dipping)

So it is wrong for developers to direct to App store to get an extra 7.5% commission?
[doublepost=1493375466][/doublepost]

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.

If you increase prices you typically decrease sales, so you don't necessarily want to increase prices too much, but generally Apple doesn't do this. How do the higher priced conversions fair?

 

[Juicy Box]

Am I reading this the wrong way?

View attachment 697700

I guess that depends on how you are reading it. What is your interpretation?

 

[dilbert99]

Am I reading this the wrong way?

View attachment 697700

If you are reading it from top to bottom, left to right and in English, then no


$0.99 (excl tax) = €0.91 (excl tax)
add on say 20% VAT = €1.09

 

[Habakuk]

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

Austria: since Friday, January 9, 2015.

I couldn't find the info. Does the May 2017 price increase affect to

o Mac App Store
o iOS App Store
o both
o other iTunes stores

Thx in advance for enlightenment.

 

[rodpascoe]

Spot on.

No, not spot on. Apple are an American company and the exchange rate they are talking about is the exchange rate applied when repatriating the revenue to the States.

 

[L-Viz]

When the Euro was superstrong compared to USD, we still had to pay more than US customers. This proves that those people at Apple are real losers! So sad! Couldn't even upgrade the SSD on my own if I bought a new Macbook pro...

 

[Juicy Box]

When the Euro was superstrong compared to USD, we still had to pay more than US customers.

When accounting for VAT, EU customers are not really paying that much more. Is the App Store exempt from the VAT?

Actually, it looks like places that have a VAT higher than 20% would be paying less per app than the US App Store, when you account for the VAT

 

[Erdbeertorte]

If you are reading it from top to bottom, left to right and in English, then no


$0.99 (excl tax) = €0.91 (excl tax)
add on say 20% VAT = €1.09

Okay, but now they get more US$ for € it was always the other way round when the prices were increased. Or am I wrong and confusing it?


Edit: I forgot to add @vertical smile.
[doublepost=1493418428][/doublepost]@dilbert99

Is that you?

 

[imicca]

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

same

 

[dilbert99]

Okay, but now they get more US$ for € it was always the other way round when the prices were increased. Or am I wrong and confusing it?


Edit: I forgot to add @vertical smile.
[doublepost=1493418428][/doublepost]@dilbert99

Is that you?

Yup, always sticking it too the pointy haired boss

 

[charlituna]

*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!!!

actually they have adjusted prices down when called for. We don't see it right away because the adjustments are generally like every 6 months. or maybe it's 3 months now.

 

[dilbert99]

actually they have adjusted prices down when called for. We don't see it right away because the adjustments are generally like every 6 months. or maybe it's 3 months now.

But does Apple behave like other companies and banks etc and are quick to raise prices but slow to lower them. In any case Apple should offer fairer prices and not have such a large war chest.
They beat the fair drum when it suits them. But gouge at every opportunity.

Being probably the most profitable company on the planet they should set an example.

End of rant

 

[LordVic]

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'?

It's an accounting issue

Because Apple reports its financials in USD, all moneys at point of reporting gets converted from whatever currency to USD for reporting purposes.

as we all know with Apple, they are very particular about hitting specific margins of profit. The strengthening USD decreases those.

Here are some example hypothetical situations

Apple prices EU and US the same
100 usd income
+ 100 Eud income
-30 conversion rate
= 170 usd revenues


Different price
100 usd income
+ 130 eud income
-30 conversion rate
= 200 usd revenue.

All this is, is Apple passing the cost of that conversion that hits their financial statements to the customers. Even if that money never ever touches us soil or gets converted. It's to make the books look better.