Apple runs the App Store with an iron fist. Not only do developers have to pay between 15 and 30 percent of their income to the company. So far, they have only been able to choose the prices for their apps according to strict specifications. That is now changing.
It’s the biggest pricing change since the App Store launched in 2008. Apple’s new model gives developers more control over how much money they can charge for their apps.
Apple adjusts prices in the App Store
Previously, apps for the iPhone had to cost at least EUR 0.99. Apple recently adjusted the upper limit from EUR 999.99 to EUR 1199.99. But now the company is introducing a completely new structure for the App Store, which allows both lower and higher prices than before.
In the euro zone, the minimum price for an app thus drops to EUR 0.29. The upper limit is now 11,999.99. Developers can now offer their apps either significantly cheaper or really expensive. Incidentally, the prices do not only apply to the apps themselves, but also to all in-app subscriptions that are processed via the App Store payment system.
With the new pricing structure, developers can also fine-tune their apps. Apple now allows increments of 0.10 euros; 0.50 euros; 1 €; 5 euros; 10 euros and 100 euros. Different prices are also possible for the cent ending: X.99 euros; X.00 euros; X.90 euros and X.95 euros. An app that previously cost EUR 0.99 can now be priced completely differently. Permitted information would be, for example, 0.89 euros; 0.90 euros; 0.95 euros or 1 euro.
A total of 600 new price points are available to developers in the App Store – 100 more for prices up to 11,999.99 euros are available on request. Apple itself describes the changes as follows:
“To provide even more flexibility for developers around the world, the pricing tiers — which start at $0.29 and go up to $10,000 upon request — will offer an expanded choice of price points across price ranges increase in increments over time (for example, every $0.10 up to $10; every $0.50 between $10 and $50, etc.).”
Apple press release, December 6, 2022
What do the new App Store prices mean for users?
The far-reaching changes are particularly important for developers who offer apps in several countries. Because with the update, the App Store can automatically manage the prices in other countries. Developers only need to set the price in their local currency. Prices in other countries are then automatically adjusted for inflation, taxes and fluctuations in the exchange rate between currencies.
But the new structure could also have a positive effect on users. Until now, an app had to cost at least EUR 0.99 in the App Store – even if developers might want to offer it cheaper. However, the additional price points now allow an app to be offered for less money. The finer gradation, especially up to the 10 euro limit, could also be to the advantage of the user. So far, an app could only cost either 7.99 euros or 8.99 euros. With the 0.10 steps, developers can now choose an intermediate value instead of the higher price, around 8.39 euros.
Developers who offer apps with ongoing subscriptions can take advantage of the new pricing structure with immediate effect. All other apps and in-app purchases will follow in spring 2022.
source
Apple Newsroom: Apple Announces App Store’s Biggest Pricing Update Yet, Adding 700 New Price Points (accessed December 7, 2022)