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Apple adjusts App Store exchange rates, adds volume app purchasing for businesses

post #1 of 23
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Apple has changed the prices in a number of international App Stores to better reflect shifting currency exchange rates, while also announcing an upcoming Volume Purchase program for App Store apps for businesses.

International app prices

AppleInsider readers in the U.K. first noted late Wednesday that Apple appears to have adjusted the exchange rate across the board for their country's App Store, as USD$0.99 apps that used to cost £0.59 now cost £0.69. Apple's iWork apps now cost £13.99, up from £11.99, on the Mac App Store in the U.K., while the popular iOS versions have jumped from £5.99 to £6.99.

MacStories telegraphed the changes earlier Wednesday after Apple announced maintenance work on iTunes Connect.

In addition to the U.K., pricing changes have appeared in a number of country-specific App Stores around the world. Australia saw a price drop from AU$1.19 to AU$0.99 on apps that cost USD$0.99 in the States. Japan and Switzerland also saw price decreases, while prices went up in Mexico and Norway.

The adjustments were long overdue, as recent fluctuations in currencies, especially the dollar, had resulted in uneven pricing in a number of countries.



Volume app purchasing

Apple has posted an promotional page for its upcoming Volume Purchasing for Business program for apps on the App Store, though only U.S. customers are eligible at the moment.

"Streamline your purchasing process and put more power and productivity in the hands of your workforce," Apple wrote. "Every paid app in the App Store is available for businesses to buy in volume through the program website. Simply search for the apps you need, enter the quantity you want to buy, and complete the transaction with your corporate credit card."

Given that Apple specifically mentions that "apps are available for purchase at the same price listed in the App Store," it remains unclear whether volume business customers will enjoy the same volume discounts that are available to educational institutions. Last August, the iPhone maker introduced a Volume Purchase program for education customers looking to purchase App Store apps in bulk.

The new Volume App Purchase Program will also allow developers to market custom "B2B apps" to business customers. Apple's program guide notes that custom B2B apps will cost a minimum of $9.99 and will be subject to the same review guidelines as apps submitted to the App Store. Developers will submit the apps through iTunes Connect and designate businesses as authorized purchasers.



The Cupertino, Calif., has been building strong momentum in the Enterprise. Global Equities Research analyst Trip Chowdhry said last week that new data indicates probably about 35% of Fortune 500 companies are giving Apple as a Choice to its employees, and majority are preferring Apple over Windows.

The analyst attributed Apple's success in part to the rapid adoption of the iPad, which has an apparent 'halo effect' that is boosting business sales of iPhones and Macs as well. The executive level of companies is "influencing the IT to bring Apple products into the Enterprise, he said.

In April, Apple noted that 88 percent of the Fortune 500 are testing or deploying the iPhone, while 75 percent are testing or deploying the iPad.
post #2 of 23
As an Australian, I am so happy right now. I'm hoping hardware pricing will follow this brilliant trend. Though, it is a shame for those living in countries where prices went up... Sorry UK.
post #3 of 23
About bloody time. The Oz dollar has been equal or stronger than the US dollar for about a year now.
post #4 of 23
Glad Apple finally is offering custom B2B apps.
post #5 of 23
Apps should cost more in certain countries. You can't just go by the exchange rate. In the US, tax is not included in the price of an app. If I buy an app for $9.99, I'm paying close to $11 when the bill comes to my email inbox.

In countries where VAT is included in the price, then the app should cost significantly more, to make up for that.
post #6 of 23
Quote:
Originally Posted by Apple ][ View Post

Apps should cost more in certain countries. You can't just go by the exchange rate. In the US, tax is not included in the price of an app. If I buy an app for $9.99, I'm paying close to $11 when the bill comes to my email inbox.

This is not always the case in the US. Some states charge sales tax on electronics transaction. I never get charged sales tax when I purchase apps from the app store.
post #7 of 23
It appears Apple Canada continues to buy product at retail prices from Apple US, then marks them up 5-15% for sale to us suckers here...

I think the App Store/iTunes Store doesn't have this obnoxious markup, but I don't know for sure as I am fortunate to have a US iTunes account, so I have access to more music and apps, at a discounted price (as the Cdn$ is worth more than the US$).
post #8 of 23
Here in Japan, the cheapest tier went from ¥115 to ¥85. Admittedly, the yen has become very strong since Lehman Brothers and the new price is closer to 0.99 USD, but for us devs it's kind of a dilemma. It's either have your revenue cut, or switch to the next tier (¥170), force-feeding the customer a ¥55 yen markup...
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post #9 of 23
The B2B sounds great for those people who develop iPad apps for restaurants, etc...
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post #10 of 23
Quote:
Originally Posted by NasserAE View Post

This is not always the case in the US. Some states charge sales tax on electronics transaction. I never get charged sales tax when I purchase apps from the app store.

Yes, you're correct that different states have different sales taxes. I remember not paying any tax at all when ordering from Amazon a few years ago, but that's now changed. I think that people in Cali also have to pay that tax now. It seems like the authorities are trying to crack down and make everybody pay tax.

Do you have an Apple store in your state?
post #11 of 23
Quote:
Originally Posted by Apple ][ View Post

Yes, you're correct that different states have different sales taxes. I remember not paying any tax at all when ordering from Amazon a few years ago, but that's now changed. I think that people in Cali also have to pay that tax now. It seems like the authorities are trying to crack down and make everybody pay tax.

Do you have an Apple store in your state?

Yes we do. But I believe there are about 24 states that impose tax on downloadable purchases. Check this article from five years ago.
post #12 of 23
Of course, we will complain when exchange rates affect our market adversely, but this seems a steep increase from Apple to those in the UK. An increase from 59p to 69p is a 17% rise. However, having just entered 99 cents into my travel money app converter it produces an equivalent of 63p, so it seems Apple are taking the pip (get it??) by jumping to the next retail price point.

I was about to buy the new version of Co-Pilot Live, a Sat Nav app, at it's special launch price of £14.99. Overnight it's gone up to £17.49 !!! Think I'll stick with my free Sat Nav app. Shame for the developer as a potential impulse purchase has now become a considered purchase - considered & decided not to bother!
post #13 of 23
Yew little bewdy, this is bonza news for us Aussies, a little bit of a motza in the ol' skyrocket.

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Better than my Bose, better than my Skullcandy's, listening to Mozart through my LeBron James limited edition PowerBeats by Dre is almost as good as my Sennheisers.
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post #14 of 23
I am in UK - so this is bad news. Relatively cheap apps was the only compensation for the ridiculously overpriced hardware in the UK. We are used to paying much more than the US for Macs etc, so it is a shame that the small benefit in software has now gone ... sigh
post #15 of 23
Quote:
Originally Posted by whatisgoingon View Post

It appears Apple Canada continues to buy product at retail prices from Apple US, then marks them up 5-15% for sale to us suckers here...

I think the App Store/iTunes Store doesn't have this obnoxious markup, but I don't know for sure as I am fortunate to have a US iTunes account, so I have access to more music and apps, at a discounted price (as the Cdn$ is worth more than the US$).

As the adage goes, "buyer beware."

The Mac mini and iMac are the same price; actually the exchange rate favours Canadians.

Music and apps have always favoured Canadians re price, and significantly more particularly when the American dollar held a premium over 25%.
post #16 of 23
Quote:
Originally Posted by RA19 View Post

I was about to buy the new version of Co-Pilot Live, a Sat Nav app, at it's special launch price of £14.99. Overnight it's gone up to £17.49 !!! Think I'll stick with my free Sat Nav app. Shame for the developer as a potential impulse purchase has now become a considered purchase - considered & decided not to bother!

Yep, you're absolutely right. I was planning to get the new Copilot app as well, but have now decided to stick with the old one. That's a ridiculous price hike, and does not reflect changes in the exchange rate.
post #17 of 23
I wonder how Apple is gonna screwup this opportunity to serve enterprise clients.
Apple does not get large corps.
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post #18 of 23
Interestingly, the effect on consumers and developers sometimes differs because Apple now always sends the proceeds to the developers in the customer's currency. Here's a spreadsheet that shows the changes for both consumers and developers: http://d.pr/MkhA
post #19 of 23
[QUOTE=Onhka;1900239]As the adage goes, "buyer beware."

The Mac mini and iMac are the same price; actually the exchange rate favours Canadians.
QUOTE]

Not really. The Canadian dollar is worth more than the US so the Can price should be less. They also charge us $120 for the Apple TV which after taking the exchange rate into account is about 25% too high.
post #20 of 23
99 cents at todays exchange rate equates to 61p so why 69p I hope Apple adjust the UK prices down when the dollar tanks as it is about to do big time.
post #21 of 23
Quote:
Originally Posted by NasserAE View Post

This is not always the case in the US. Some states charge sales tax on electronics transaction. I never get charged sales tax when I purchase apps from the app store.

You live n a state without an APple store? Or do you live in Deleware?

Just noticed you refer to ddownloadable content. Hard to believe there are still states that do not tax downloads in 2011.
post #22 of 23
Quote:
Originally Posted by Odysseus1923 View Post

99 cents at todays exchange rate equates to 61p so why 69p I hope Apple adjust the UK prices down when the dollar tanks as it is about to do big time.

Don't you have vat in the UK?

They may have to do local hosting of some of the content. Some CDN providers charge more for downloads on their european edges then their US ones..

There is a lot more at play then the exchange rate. What other taxes doe apple have to pay just to do business in your country?
post #23 of 23
In Norway a 25 % VAT rate was applied to all digital download sales from July 1, so that is the reason for the price hike here up north. Other than that, the exchange rate effect has only been moderately negative for Apple's prices in Norway, historically. Apple prices are a little bit higher here, but then again, so is purchasing power. A purchasing power parity-adjusted price comparison would be the most reasonable.
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