Apple said Tuesday that it is expanding the App Store’s pricing tiers, giving developers the flexibility to set prices for apps based on country or region. Apple says the move will greatly benefit developers as they will gain control to price their app at 45 currencies across 175 storefronts.
When developers submit their apps to the App Store, they don’t choose a price for their app, they choose a price tier. Under the new App Store pricing system, all developers can select 900 price points, which is almost 10 times the number of price points previously available for most apps. Each price tier corresponds to a different price the app will sell for on the App Store, which is in the range of Rs 9-1 crore. In the Indian App Store, for example, prices will increase every 5 rupees up to 500 rupees, and every 10 rupees between 500 and 1500 rupees.
The new price improvements will be available for apps that offer auto-renewing subscriptions starting today and for all other apps and in-app purchases in spring 2023.
With the new App Store pricing system, a game developer, for example, can choose one price in India and have a different price for the US market. Apple says the new Apple Store pricing levels will simplify the global pricing process for developers; After all, the App Store operates in 174 countries, and each country has its own currency. Even if the value of the price levels in each of the different currencies may be equivalent in value, currencies fluctuate in value all the time.
Apple first launched the App Store in 2008, allowing iPhone users to download apps. Initially, the store offered only around 800 apps to download, but today the App Store boasts millions of apps. While the App Store has been credited with establishing the app economy, Apple has come under fire of late for its business practices. Regulators are investigating whether Apple’s control of its App Store platform could be anti-competitive. The App Store is the only way for most users to install software on an iPhone.
Apple takes a portion of every purchase made through iOS or the Mac App Store, whether it’s a paid app, in-app purchase, or in-app subscription. Apple keeps 30% of paid apps and in-app purchases. The cut on paid subscriptions dropped to 15 percent after one year. Big developers including Epic and the makers of Tinder say Apple makes their own businesses significantly less profitable.