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Tuesday, April 1, 2014

Australian iTunes App Store Price changes - April 2014

Apple have announced some pricing changes that will affect a small number of local "stores", including the Australian iTunes App Store.

No news yet on what the changes will be specifically, but it looks like there will be an adjustment to some of the pricing "tiers" that Apple app publishers have to choose from to set the price of their apps.

In Apple's iTunes App Store, a publisher can't choose just any price for their app ... they have to choose a tier which then relates to a price in each country in which the app is sold.

The "free" tier is obviously the same worldwide, whereas Tier 1 - for example - equates to USD 0.99. Australian apps at Tier 1 prices were previously AUD1.19 but were brought back into line with USD a couple of years ago due to exchange rates.

Apple are now adjusting that again, which means that the prices for Australian apps will most likely go up slightly.

The good news ? ... If you're an app developer/publisher who resides in Australia then your app prices will increase for any apps sold in Australia, and your 70% cut of that app price will increase accordingly.

Don't forget - if you're thinking of creating an app, check out our blog post on how to best monetise your app (hint: don't charge up-front ... charge for in-app purchases or use advertising).

Update 2-Apr-2014:  Apple's new Australian pricing changes the Tier 1 app price from $0.99 to $1.29 (AUD) and Tier 2 from $1.99 to $2.49 (AUD). This is a sharp rise (25-30%) which seems a little out-of-line with the AUD exchange rate but the positive side is that as an app publisher you now earn 25-30% more for those lower Tiers.

The other Tiers have also changed to varying degrees (remember there are many Tiers right up to Tier 87 which is now a whopping $1,299.99 AUD).