Apple switches App Store pricing to local currencies in 9 countries

AppleInsiderAppleInsider
Posted:
in iPhone
In nine markets, Apple will soon move to using local currencies on the App Store, according to an official notice to developers.




The transition should start in the next few weeks, Apple said. Affected countries include Egypt, Kazakhstan, Malaysia, Nigeria, Pakistan, the Philippines, Qatar, Tanzania, and Vietnam.

Previously those countries' storefronts showed pricing in U.S. dollars. That could, of course, be potentially confusing for anyone wanting an app or in-app purchase, given exchange rates.

The changeover is expected to be fairly seamless, as Apple noted that any auto-renewing subscriptions will continue automatically.

Apple typically uses local currencies in major markets such as France and the U.K.

Comments

  • Reply 1 of 11
    randominternetpersonrandominternetperson Posts: 3,089member
    That's odd.  I wonder what was different about those countries.  That would be like if those Nigerian prince emails said he wants to send me 6 billion naira instead of $20 million.  I doubt it was just laziness on Apple's part.
    edited December 2016
  • Reply 2 of 11
    anantksundaramanantksundaram Posts: 20,404member
    randominternetperson said:
    That's odd.  I wonder what was different about those countries.  That would be like if those Nigerian prince emails said he wants to send me 6 billion naira instead of $20 million.  I doubt it was just laziness on Apple's part.
    I am guessing that these are tiny markets for Apple, and the company just didn't bother until now. Likely nothing more significant than that.
    randominternetpersonwatto_cobra
  • Reply 3 of 11
    sdietricsdietric Posts: 7member
    It should actually be the other way around. There is more uncertainty for the customer when they buy on the store in USD because you don't know how much you will be charged on your local currency credit card. Or the other way around, there is more currency risk for Apple when the store is in local currency, but Apple doesn't know how much they get in USD when customers buy, and may have to make more frequent adjustments to prices on major currency exchange rate shifts. For major currencies, that risk is usually not that high as fluctuations are relatively small (with one notable exception of USD vs GBP on Brexit decision), but I guess these markets mentioned above are so small that pricing changes won't be frequent even on larger currency exchange rate fluctuations.
  • Reply 4 of 11
    SpamSandwichSpamSandwich Posts: 33,407member
    They should offer Bitcoin payment in all territories.  B)
  • Reply 5 of 11
    randominternetpersonrandominternetperson Posts: 3,089member
    sdietric0 said:
    It should actually be the other way around. There is more uncertainty for the customer when they buy on the store in USD because you don't know how much you will be charged on your local currency credit card. Or the other way around, there is more currency risk for Apple when the store is in local currency, but Apple doesn't know how much they get in USD when customers buy, and may have to make more frequent adjustments to prices on major currency exchange rate shifts. For major currencies, that risk is usually not that high as fluctuations are relatively small (with one notable exception of USD vs GBP on Brexit decision), but I guess these markets mentioned above are so small that pricing changes won't be frequent even on larger currency exchange rate fluctuations.


    Excellent points.  And just 2 posts to your name.  Welcome!

    However the risk/fluctuation will primarily hit the software developers (their 70% compared to Apple's 30%).  I have some minor apps in the AppStore and those countries probably represent a fraction of 1% of sales, so oh well.

  • Reply 6 of 11
    komokomo Posts: 25member
    How about CANADA?
  • Reply 7 of 11
    anantksundaramanantksundaram Posts: 20,404member
    They should offer Bitcoin payment in all territories.  B)
    Highly unstable currency for a company the size and scope of Apple. But not for the reasons you might think. https://www.technologyreview.com/s/540921/the-looming-problem-that-could-kill-bitcoin/

    It's still in its infancy, and has a ways to go to become mature.
  • Reply 8 of 11
    tokyojimutokyojimu Posts: 529member
    komo said:
    How about CANADA?
    Apple will be converting that store to show prices in moose and maple leaves.
  • Reply 9 of 11
    SpamSandwichSpamSandwich Posts: 33,407member
    They should offer Bitcoin payment in all territories.  B)
    Highly unstable currency for a company the size and scope of Apple. But not for the reasons you might think. https://www.technologyreview.com/s/540921/the-looming-problem-that-could-kill-bitcoin/

    It's still in its infancy, and has a ways to go to become mature.
    For countries that have volatile currencies, Bitcoin has already found a foothold. Argentina, for example:  http://www.nytimes.com/2015/05/03/magazine/how-bitcoin-is-disrupting-argentinas-economy.html?_r=0

  • Reply 10 of 11
    misamisa Posts: 827member


    Apple typically uses local currencies in major markets such as France and the U.K.
    The problem is that "local currencies" fluctuate. We should be given the option to pay in whatever currency we have a credit card for. So if I have a US card, I want to spend $800 USD, not $1200 CAD, or whatever. Especially if that income is already in USD, double-exchanges result in a loss of 10% of the value to the customer. When Steam switched over, I just wound up buying less things because the US store would say 9.99 and the Canadian store would say 13.99. Seriously? A 40% markup when the exchange is closer to 33%. So I end up converting my 20 USD into 25.00 because of the exchange commission instead of 26.6, and buy the game for 13.99. The end result is that it didn't cost me 13.99 CAD it cost me $11.00 USD instead of $10.

    It would be far less stupid if Apple, Steam, etc priced their goods in USD with a "show local currency" option so that we see that we're not being ripped off. When it comes time to pay, either use the USD price if your card has a good exchange rate, or use the local currency and save any charges made to your card at the cost of Apple or Valve likely pocketing the markup on the exchange. 

    re: Bitcoin, fat chance. Nobody should be using Bitcoin for anything that isn't a digital download or a person-to-person transaction to be completed in minutes. When banks and companies get in on bitcoin, it becomes another version of high-speed-trading to screw people holding bitcoin in any amount.
    edited December 2016
  • Reply 11 of 11
    croprcropr Posts: 1,124member
    misa said:


    Apple typically uses local currencies in major markets such as France and the U.K.
    The problem is that "local currencies" fluctuate. We should be given the option to pay in whatever currency we have a credit card for. So if I have a US card, I want to spend $800 USD, not $1200 CAD, or whatever. Especially if that income is already in USD, double-exchanges result in a loss of 10% of the value to the customer. When Steam switched over, I just wound up buying less things because the US store would say 9.99 and the Canadian store would say 13.99. Seriously? A 40% markup when the exchange is closer to 33%. So I end up converting my 20 USD into 25.00 because of the exchange commission instead of 26.6, and buy the game for 13.99. The end result is that it didn't cost me 13.99 CAD it cost me $11.00 USD instead of $10.

    It would be far less stupid if Apple, Steam, etc priced their goods in USD with a "show local currency" option so that we see that we're not being ripped off. When it comes time to pay, either use the USD price if your card has a good exchange rate, or use the local currency and save any charges made to your card at the cost of Apple or Valve likely pocketing the markup on the exchange. 

    re: Bitcoin, fat chance. Nobody should be using Bitcoin for anything that isn't a digital download or a person-to-person transaction to be completed in minutes. When banks and companies get in on bitcoin, it becomes another version of high-speed-trading to screw people holding bitcoin in any amount.
    It is not Apple that decides on the price in the App Store, it this the app developer.  But Apple forces the app developer to set a USD price as the reference, which sucks if the local currency of the app developer is not USD.  For the app developer outside the US, it is the USD that fluctuates,  not the local currency and it is the developer that has the currency risk.  When Apple change the exchange rate in the App Store (luckily not very frequently) an app developer can see the price of his app in his local currency change even if he does not want to.
    In the Play Store of Google, Google does not enforce the app developer to set the USD price as the reference and the app developer does not have that problem
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