Apple announced that app prices on the App Store from 5 October per iPhone, iPad, Mac, Apple Watch e TV they will rise in all countries of the euro zone.
The increases concern both application prices and in-app purchase prices, which today account for a large portion of the revenue of the most successful apps. In the case of subscriptions, the price will not increase for those that have already been stipulated and are automatically renewed.
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The minimum price of apps and in-app purchases will go from 0.99 to 1.19 euros, the 9.99 apps will cost 11.99 and the maximum practicable price will go from 999 to 1199.99 euros. The prices on the App Store are not freely decided by the developers but can only be assigned by selecting a specific level among the 87 available: one Updated pricing table is available on Apple’s developer site.
In some cases, the previous price levels still exist as lower levels, therefore it is not said that all apps will automatically cost more. For example: if an app is priced at 9.99 euros, it means that according to the current table it is at level 10; in the new scheme available from October, the price of 9.99 euros still exists, but it has become level 8. In order not to raise the price, the developer can therefore decide to lower the membership level of the app, keeping 9.99 euros as the price of the application for the customer. In this way, the developer would decide to absorb the increases due to inflation and, in the case of a US developer, the exchange rate against the dollar.
However, this cannot happen for apps and in-app purchases priced at 0.99, 1.99, 2.99 or 3.99 euros, because in Europe, the new levels no longer include these price cuts: in the case of an app that today costs 1.99, the developer can only choose to go to 2.49 while staying at the same level and with an increase of 50 cents, or go down one level and set the price to 1.49 euro, effectively losing 50 cents. They look like details, but in the case of the lower levels pricing policies are very important for sales and for the psychological aspect of the purchase: in the coming days, developers will have to make difficult choices.
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Apple has not given a specific reason for the price increase, but it is clear that it is a adjustment to the global economic situation, in particular following the parity in the exchange rate between the euro and the dollar; in some countries (this is the case of Vietnam), prices have also been revised to adapt to some changes in the taxation of intangible assets.
After all, the consequences of the euro-dollar exchange are already seen also in the case of the new iPhone 14 (here our proof): in the US, Apple has chosen to absorb inflation by maintaining the same prices as last year, while in Europe the new Apple smartphones have undergone a significant increase compared to the previous series.