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Apple Increases European App Store Pricing, Changes Some Countries to Local Currencies

Guys, you do realise that Apple pays VAT on App Store sales, right?

€0.89 is including 15% Luxembourg VAT. When you remove the VAT (€0.89/1.15), it becomes €0.774, which according to XE.com is US$1.00127, which is about 1¢ more than the US App Store price of 99¢.

It seems Apple was just bringing the price brackets it in line with VAT and current exchange rates to be about equal with US prices. They did this a while back in the UK.
 
Did they increase the price of every app or increase the minimum price of an app?
Apple has increased the amount of money charged for App Store pricing tiers for a number of countries across the European Union.
Click to expand...
It sounds like they just changed the prices you're allowed to charge, but I see comments that seem like Apple added an extra tariff or something, so I'm not sure.
 
Apple really don't give a toss do they about how they are perceived outside America, just greed pure greed..I've been a stern Apple supporter for many years but no more, they really have started to look up their own backsides..
W
In a few years the IOS products will be 10% of the market just like the poor Mac..
Who really cares how thin something is!
 
Experts!!

Wow, all you guys are such experts.
Pointing out how ridiculously stupid and greedy Apple are being. Couldn't be any rational, legitimate reason for what they're doing.
How the hell has Apple survived this long when they've clearly got no idea!? Oh yeah, it was Steve. Tim and Co. are just idiots.
Now that Steve's gone, it's all gonna fall apart...any minute now....just watch...well, not just yet, they're still riding on the good work Steve did...maybe a bit longer...5 years later...
 
iFanboy said:
This is just greed. If you look at Apple's finances they are doing very well with the current model and have more cash than they can spend (indeed, more cash reserves than the US government at one stage before the debt ceiling was raised).

This isn't therefore motivated by necessity, it's motivated by greed and the desire to make EVEN MORE money that they won't be able to spend.

This is why people hate large corporations, they are always trying to squeeze the little guy to make even larger profits, regardless of how enormous their existing profit levels are.
Click to expand...

Most of an app’s price goes to the developer, not to Apple, you realize.
 
There are no increases in prices in Turkey. $0.99 became 1.79 TRY which is exactly equal.
 
FirePhantom said:
Guys, you do realise that Apple pays VAT on App Store sales, right?

€0.89 is including 15% Luxembourg VAT. When you remove the VAT (€0.89/1.15), it becomes €0.774, which according to XE.com is US$1.00127, which is about 1¢ more than the US App Store price of 99¢.

It seems Apple was just bringing the price brackets it in line with VAT and current exchange rates to be about equal with US prices. They did this a while back in the UK.
Click to expand...
This. Always check the math.

That, and most of this money is going to developers, not Apple.
 
Smart move Apple... With the fed printing dollars like there's no tomorrow, (QE3) the dollar is quickly losing value to all other currencies. This is the only way for Apple to maintain a stable profit margin. Apple is ahead of the curve in not using dollars as the default currency . It is sad to see a once great countries money supply slowly sink into the abyss. Thanks, Mr. Bernanke. :rolleyes:
 
And how is the difference allegedly only because of VAT when the iPad mini is between 329 and 339 euros in Europe which is about 90 euros more expensive than the 329 dollars in the US?
 
lighthouse_man said:
And how is the difference allegedly only because of VAT when the iPad mini is between 329 and 339 euros in Europe which is about 90 euros more expensive than the 329 dollars in the US?
Click to expand...

I have no idea, but maybe different countries have different operating costs? Maybe some currencies aren't to be trusted so Apple are playing it safe? Maybe somebody isn't out to get you?
I'm not sure.
 
rmwebs said:
Hmm I was told the pricing was being 'altered', but Apple conveniently never informed me that their cut was increasing to 40%.

edit: answered my own query - 10% increase is to EU only. Still sucks.
Click to expand...

What?

I for one welcome people in other regions paying more... I find it frustrating that I make less money off of them than US customers - but what is this of Apple increasing their cut? The prices are only slightly rising... them increasing their cut to 40% would simply make it so that customers and developers are screwed out of more money.
 
FirePhantom said:
Guys, you do realise that Apple pays VAT on App Store sales, right?

€0.89 is including 15% Luxembourg VAT. When you remove the VAT (€0.89/1.15), it becomes €0.774, which according to XE.com is US$1.00127, which is about 1¢ more than the US App Store price of 99¢.

It seems Apple was just bringing the price brackets it in line with VAT and current exchange rates to be about equal with US prices. They did this a while back in the UK.
Click to expand...

This for everyone who's complaining
As well as due to the Eurozone crisis, the Euro fluctuations forced Apple to take action or otherwise it will cut their profit margins. All companies do this to their international pricing, as exchange rate has a big influence, anyone do basic economics should know this :D
 
joseph2166 said:
I have no idea, but maybe different countries have different operating costs? Maybe some currencies aren't to be trusted so Apple are playing it safe? Maybe somebody isn't out to get you?
I'm not sure.
Click to expand...

While the iPhone is usually sold with a contract and so people will continue to buy it around here, the iPad isn't and if this doesn't get rectified, there are other tablets on the market, a lot cheaper.

Apple may very well have its reasons for this pricing scheme which it likes to keep a mystery but selling it cheaper here would still yield them a decent profit. It's not like the recession didn't hit these shores. They may not be out to "get me" and I speak for myself here saying while I'm not interested in getting into a Nexus vs iPad argument and while I was planning on getting myself the mini which I've been holding on for the past year, I in this moment am reconsidering my options and I believe many others are.
 
leo.andres.21 said:
This for everyone who's complaining
As well as due to the Eurozone crisis, the Euro fluctuations forced Apple to take action or otherwise it will cut their profit margins. All companies do this to their international pricing, as exchange rate has a big influence, anyone do basic economics should know this :D
Click to expand...

I must not get economy but why would a company want to increase its rates for the countries where people have less and less money to spend on their products?
 
rmwebs said:
Hmm I was told the pricing was being 'altered', but Apple conveniently never informed me that their cut was increasing to 40%. I presume this 10% increase is applied only to the EU price-increase countries, and not globally?

edit: answered my own query - 10% increase is to EU only. Still sucks.
Click to expand...

I'll leave this here

with the introduction of new pricing tiers, some have suggested Apple has also slightly tweaked the commission it takes from every sale to 40%. It needs to be noted, however, that Apple’s commission in Europe was already 40% before . There are several factors to consider for this pricing change: Euro isn’t as strong as a year ago, so exchange rates have changed significantly in the past 12 months. Too, Apple is, as usual, paying VAT of 15% for Luxembourg, where the company is based for EU iTunes sales.
Click to expand...
 

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