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Apple to raise app prices in Japan due to volatile exchange rate

post #1 of 11
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Apple on Wednesday notified developers that price increases will hit the Japanese iOS App Store tomorrow, with the changes meant to offset variations in the dollar-to-Yen exchange rate.

Yen


The price change is normal for Apple, which periodically updates App Store and, at times, retail store pricing in an ongoing effort to bring uniformity across its international businesses in light of the always tumultuous foreign exchange market.

As seen in the above email, provided by AppleInsider reader Peter, the increased retail price will affect Japan only, likely a result of the country's recent economic woes and continued recovery against the dollar.

Apple did not detail how far it plans to adjust upwards, though it could be similar to a 2011 price jump that affected the UK. At the time, lower-priced apps were bumped from ?0.59 to ?0.69, while more expensive titles saw changes of over ?2.

The email also notifies developers that the new Pricing Matrix for Japan can be viewed on iTunes Connect, while updates to the Paid Applications contracts will be made available after the price adjustment goes live.

As of this writing, it is Thursday morning in Japan, meaning the new prices should be rolling out soon. A check with the iOS and Mac App Stores in that region did not yet reveal Apple's new prices.
post #2 of 11
Don't developers set the price for their apps? Is this just for Apple apps?
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post #3 of 11
Quote:
Originally Posted by DroidFTW View Post

Don't developers set the price for their apps? Is this just for Apple apps?

Perhaps Apple is just doing the currency exchange rate for developers who sell in global markets.

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post #4 of 11
Quote:
Originally Posted by DroidFTW View Post

Don't developers set the price for their apps? Is this just for Apple apps?

I assumed they set it for whatever market is their primary based on Apple's pricing structure for said market, and then it's auto converted for any additional markets that are added.
post #5 of 11
Quote:
Originally Posted by DroidFTW View Post

Don't developers set the price for their apps? Is this just for Apple apps?

Developers can choose from Tier pricing. Each tier sets the app price globally. Developers cannot set different tiers for different countries. This is why Apple some times raise or lower prices for each individual country to account for currency exchange changes.

Here is the tier matrix. EDIT: This matrix is from 2009 and the prices in that table have changes several times.
Edited by NasserAE - 10/16/13 at 4:16pm
post #6 of 11
Quote:
Originally Posted by DroidFTW View Post

Don't developers set the price for their apps? Is this just for Apple apps?

Apple offers a list of standard price points, from which the developer can choose. The US price is the baseline, and Apple sets how the US price points map to other currencies, allowing for exchange rate (with a safety margin), and any applicable taxes and duties.

 

For example, the lowest standard price points are US$0.99 and US$1.99 (not including sales taxes). In the New Zealand App Store, they become NZ$1.29 and NZ$2.59 (including Goods and Services Tax). Based on today's exchange rate, US$0.99 = NZ$1.175, adding 15% GST gives NZ$1.35, therefore apps in New Zealand are cheaper than in the US right now (excluding tax), but only by about 4%.

 

The lowest standard price points in the Japan App Store right now are ¥85 and ¥170. At today's exchange rate, a US$0.99 app should be ¥97.85 before tax in Japan. Assuming Japan App Store prices don't include sales tax, that means apps in Japan are currently about 14% cheaper than in the US, which is enough for Apple to justify a pricing change. (If 5% sales tax is included in the quoted price, then a US$0.99 app should be ¥102.74 and the price discrepancy is about 21%.)

post #7 of 11
Quote:
Originally Posted by NasserAE View Post


Developers can choose from Tier pricing. Each tier sets the app price globally. Developers cannot set different tiers for different countries. This is why Apple some times raise or lower prices for each individual country to account for currency exchange changes.

Here is the tier matrix.

According to today's rate, $0.99 USD = 97.8685 JPY.  So how does Apple get off charging 115 JPY?  And is that the old rate or the new rate (already with the increase)?    Based on today's rate, it should be .731853 Euros, not .79. 

post #8 of 11
Originally Posted by zoetmb View Post
According to today's rate, $0.99 USD = 97.8685 JPY.  So how does Apple get off charging 115 JPY?

 

Because the rate changes daily and it would be idiotic to do the same with prices…

post #9 of 11
Quote:
Originally Posted by zoetmb View Post
 

According to today's rate, $0.99 USD = 97.8685 JPY.  So how does Apple get off charging 115 JPY?  And is that the old rate or the new rate (already with the increase)?    Based on today's rate, it should be .731853 Euros, not .79. 

 

That table is from 2009. I was giving him an example of what the price matrix looks like. Sorry I didn't make that clear. I personally get access to the latest prices since I am a developers but you can google it and find it online some where.

post #10 of 11
They should do that here in India.
The exchange rate they are using right now is 55 rupees per dollar.
the now it is 65-70 rupees per dollar....
just saying...
post #11 of 11
Recent economic woes? C'mon AI, do your homework! This is a 15 year recession, and he recovery against the dollar is a deliberate move to stimulate growth.
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