Jump to content

Apple App Store: Apps will be around 20 percent more expensive from October

darknessblade
 Share

Summary

As Apple announced in a message to developers, prices for end customers in the App Store will be increased in some countries from October 5th. The entire euro area is also affected, including Germany. The customization affects both apps and in-app purchases.

 

Quotes

Quote

Weak euro reason for price increase
Automatic renewals of subscriptions are initially not automatically adjusted in price. The reason for the price adjustment is the changed exchange rates between the US dollar and the euro, as the US dollar has now appreciated significantly against the euro, which has recently also been reflected in the prices of the new iPhone 14 , which is being sold in the euro zone in have become more expensive compared to the previous year, while they have remained stable in the USA.


Not only affected Eurozone
The following countries are also affected by the price increase: Egypt, Chile, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden and Vietnam. In Vietnam, the new pricing structure also takes into account legal changes that require Apple to collect and pass on taxes due directly in the App Store.

 

 

My thoughts

Is it just me or does apple wants to get fined for VIOLATING the DSA and DMA.

 

Using the changed value of the Euro is just some excuse they are using to justify the price increase.

Since from what I have seen apple always used a 1:1 exchange rate for nearly all IAP's.

With nearly all items having a identical price in dollars and euro's no matter what currency you use

 

Sources

https://developer.apple.com/news/?id=e1b1hcmv

https://www.computerbase.de/2022-09/apple-app-store-apps-werden-ab-oktober-rund-20-prozent-teurer/

╔═════════════╦═══════════════════════════════════════════╗
║__________________║ hardware_____________________________________________________ ║
╠═════════════╬═══════════════════════════════════════════╣
║ cpu ______________║ ryzen 9 5900x_________________________________________________ ║
╠═════════════╬═══════════════════════════════════════════╣
║ GPU______________║ ASUS strix LC RX6800xt______________________________________ _║
╠═════════════╬═══════════════════════════════════════════╣
║ motherboard_______ ║ asus crosshair formulla VIII______________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ memory___________║ CMW32GX4M2Z3600C18 ______________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ SSD______________║ Samsung 980 PRO 1TB_________________________________________ ║
╠═════════════╬═══════════════════════════════════════════╣
║ PSU______________║ Corsair RM850x 850W _______________________ __________________║
╠═════════════╬═══════════════════════════════════════════╣
║ CPU cooler _______ ║ Be Quiet be quiet! PURE LOOP 360mm ____________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ Case_____________ ║ Thermaltake Core X71 __________________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ HDD_____________ ║ 2TB and 6TB HDD ____________________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ Front IO__________   ║ LG blu-ray drive & 3.5" card reader, [trough a 5.25 to 3.5 bay]__________║
╠═════════════╬═══════════════════════════════════════════╣ 
║ OS_______________ ║ Windows 10 PRO______________________________________________║
╚═════════════╩═══════════════════════════════════════════╝

 

Link to comment
Share on other sites

Link to post
Share on other sites

And yet when the euro occasionally rose in value I never saw a decrease in prices, just the same ol' 1 euro uquals 1 dollar

One day I will be able to play Monster Hunter Frontier in French/Italian/English on my PC, it's just a matter of time... 4 5 6 7 8 9 years later: It's finally coming!!!

Phones: iPhone 4S/SE | LG V10 | Lumia 920

Laptops: Macbook Pro 15" (mid-2012) | Compaq Presario V6000

Link to comment
Share on other sites

Link to post
Share on other sites

2 hours ago, suicidalfranco said:

And yet when the euro occasionally rose in value I never saw a decrease in prices, just the same ol' 1 euro uquals 1 dollar

True, It just seems like they want a excuse to increase prices, then magically decrease them to comply with the DMA/DSA, 

 

Which will turn the prices back to what they where before they "Increased" it. essentially not changing anything at all.

 

 

╔═════════════╦═══════════════════════════════════════════╗
║__________________║ hardware_____________________________________________________ ║
╠═════════════╬═══════════════════════════════════════════╣
║ cpu ______________║ ryzen 9 5900x_________________________________________________ ║
╠═════════════╬═══════════════════════════════════════════╣
║ GPU______________║ ASUS strix LC RX6800xt______________________________________ _║
╠═════════════╬═══════════════════════════════════════════╣
║ motherboard_______ ║ asus crosshair formulla VIII______________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ memory___________║ CMW32GX4M2Z3600C18 ______________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ SSD______________║ Samsung 980 PRO 1TB_________________________________________ ║
╠═════════════╬═══════════════════════════════════════════╣
║ PSU______________║ Corsair RM850x 850W _______________________ __________________║
╠═════════════╬═══════════════════════════════════════════╣
║ CPU cooler _______ ║ Be Quiet be quiet! PURE LOOP 360mm ____________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ Case_____________ ║ Thermaltake Core X71 __________________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ HDD_____________ ║ 2TB and 6TB HDD ____________________________________________║
╠═════════════╬═══════════════════════════════════════════╣
║ Front IO__________   ║ LG blu-ray drive & 3.5" card reader, [trough a 5.25 to 3.5 bay]__________║
╠═════════════╬═══════════════════════════════════════════╣ 
║ OS_______________ ║ Windows 10 PRO______________________________________________║
╚═════════════╩═══════════════════════════════════════════╝

 

Link to comment
Share on other sites

Link to post
Share on other sites

4 minutes ago, darknessblade said:

True, It just seems like they want a excuse to increase prices, then magically decrease them to comply with the DMA/DSA, 

 

Which will turn the prices back to what they where before they "Increased" it. essentially not changing anything at all.

 

 

I really have doubts they will reduce it if the euro ever goes back to what it was. They'll leave it, their user base will get used to it, get fined,  fight the court for a decade or two without lowering the price and then maybe,  if the fine is high enough, lower it... By 10%

One day I will be able to play Monster Hunter Frontier in French/Italian/English on my PC, it's just a matter of time... 4 5 6 7 8 9 years later: It's finally coming!!!

Phones: iPhone 4S/SE | LG V10 | Lumia 920

Laptops: Macbook Pro 15" (mid-2012) | Compaq Presario V6000

Link to comment
Share on other sites

Link to post
Share on other sites

This isn't thrilling... but this also isn't new for app and media stores in general.

 

Apple and Google occasionally tweak prices up and down to adjust for currency differences. I remember changes like that for iTunes in Canada over a decade ago. It's not a horrible crime; now, if Apple was charging far more than the exchange rate, that'd be another story.

Link to comment
Share on other sites

Link to post
Share on other sites

Changes in prices for digital goods with no physical production cost increases, never thought we were already this close to dystopia.

 

I hope the question hasn't already become 'how do we survive the zombie masses blindly accepting everything corporations are pushing?'. If this is how far we've fallen already, to just quietly complain about price increases from the same companies posting record breaking profits year over year, I don't know how the world crawls back into controlling these companies.

Current Config:

Spoiler

R5 2600X @4.1ghz all core, 16GB Patriot 3200mhz, 1TB XPG SX8200 Pro nvme, RTX 2070 Duke, CM Elite 110 mitx, pair of KRK Rokit 6 monitors with 10in sub, BenQ TH671ST projector for 150" screen. 

MSI Prestige 14 with too many cooling mods to list out (it's quiet now)

 

Link to comment
Share on other sites

Link to post
Share on other sites

14 hours ago, darknessblade said:

True, It just seems like they want a excuse to increase prices, then magically decrease them to comply with the DMA/DSA, 

 

Which will turn the prices back to what they where before they "Increased" it. essentially not changing anything at all.

 

 

They probably have to raise the prices because otherwise they won't hold enough reserves to payout euro-based developers, which means Apple was effectively subsidizing Euro customers.

 

There is a solution to that, don't link $1 dollar = $euro.

Link to comment
Share on other sites

Link to post
Share on other sites

7 hours ago, Kisai said:

They probably have to raise the prices because otherwise they won't hold enough reserves to payout euro-based developers,

You mean the company with the highest market cap worldwide, second highest profit worldwide and 6th highest revenue worldwide "doesn't have enough money to pay developers"?

 

Pretty sure their legion of accountants could figure that problem out in seconds.

🌲🌲🌲

Judge the product by its own merits, not by the Company that created it.

Link to comment
Share on other sites

Link to post
Share on other sites

7 hours ago, Kisai said:

They probably have to raise the prices because otherwise they won't hold enough reserves to payout euro-based developers, which means Apple was effectively subsidizing Euro customers.

 

There is a solution to that, don't link $1 dollar = $euro.

You mean the company that it off every dollars takes out 30 cents which right enough is equal to 30 euro cents, and doesn't pay taxes on it cause they take it with a double Irish and a Dutch sandwich, can't figure out how to give devs their 70 euro cents?

And last I checked, here in Italy devs do their own tax work, not apple for them.

 

 

Oh no, wait, dear lord, I'm falling out of line, sui bad!

Apple is love, Apple is life! Forgive me lord father Apple for i have sinned, I have doubted your benevolence, I am soiled and will repent to get back on your grace

One day I will be able to play Monster Hunter Frontier in French/Italian/English on my PC, it's just a matter of time... 4 5 6 7 8 9 years later: It's finally coming!!!

Phones: iPhone 4S/SE | LG V10 | Lumia 920

Laptops: Macbook Pro 15" (mid-2012) | Compaq Presario V6000

Link to comment
Share on other sites

Link to post
Share on other sites

4 hours ago, Arika S said:

You mean the company with the highest market cap worldwide, second highest profit worldwide and 6th highest revenue worldwide "doesn't have enough money to pay developers"?

 

Pretty sure their legion of accountants could figure that problem out in seconds.

Companies don't need to subsidize their users if they don't want to. The lions share of developers are in the US, and thus in order to pay US developers as the Euro value goes down, means the price in Euro's has to go up.

 

Look at steam, they stopped doing this years ago for the same reason. Pinning the value to the USD means that they have to hold reserves of those currencies instead of just charging the exchange-rate. Which by the way, they change regularly as everyone keeps trying to keep the xx.99 = prince digits. If foreigners are paying Euros for games priced really in dollars, the company is effectively subsidizing it.

 

It's more expensive to exchange money daily than it is to just hold a billion euros in reserve, exchanged once when it was more favorable. If Euro developers aren't making as much as American ones, then the logic holds that Apple is doing this because they have to buy more euros, to which they aren't stupid and aren't going to subsidize the Euro market.

 

Or would the Europeans prefer to buy in USD at the rip-off exchange rate their banks and credit cards charge?

Link to comment
Share on other sites

Link to post
Share on other sites

14 hours ago, GhostRoadieBL said:

Changes in prices for digital goods with no physical production cost increases, never thought we were already this close to dystopia.

A while ago there was a Newsletter from Altium, the makers of the same-named PCB design software which has slowly become the industry standard but is full of bugs ever since and now only offers subscription-based licensing at roughly $3000 per seat and year.

They claimed due to recent price hikes (aka after Ukraine war) they see no other choice as to increase their prices. They are a pure software company..

 

Edit: Ah yeah sure we are now at 4k-6k per year. Cool.

 

Screen Shot 2022-09-22 at 16.24.35.png

Link to comment
Share on other sites

Link to post
Share on other sites

On 9/21/2022 at 8:38 PM, darknessblade said:

Since from what I have seen apple always used a 1:1 exchange rate for nearly all IAP's.

With nearly all items having a identical price in dollars and euro's no matter what currency you use

So the key thing to remember is pricing in euros (and most of the world outside the US) include sales tax.  So if the number looks like 1 to 1 that does not mean it is 1 to 1 after tax, most of Europe operates around the 20% tax rate so it is more like 1 to 0.8 and this does like up with euro to USD conversion rates in the past.

With the euro now being more 1 to 1 you would expect the prices in numerical values (including sales tax in euros) to be $1 to €1.20 .

Link to comment
Share on other sites

Link to post
Share on other sites

15 hours ago, suicidalfranco said:

You mean the company that it off every dollars takes out 30 cents which right enough is equal to 30 euro cents, and doesn't pay taxes on it cause they take it with a double Irish and a Dutch sandwich, can't figure out how to give devs their 70 euro cents?

And last I checked, here in Italy devs do their own tax work, not apple for them.

so sales tax in Europe is somthign that the re-sellear (apple) does. This tax is collected before apple take the rev share.

eg if you pay 1.20 EURO for an app:

* 20 cents goes as sales tax (assuming the user is in a 20% sales tax regions)
* 15 to 30 cents goes as apple rev share
* 70 to 85 cents goes to the developer


Yes developed need to pay regular income tax on that income but they do not need to manage sales tax as sales tax is managed at the point of sale to consumers.

 In some regions there are all sorts of fun tax loopholes that means you can reduce how much tax you might pay in those regions you will need to bill Apple in terms of sales tax (eg rather than getting 85 Cent from apple you bill apple 85 + 17cents (sales tax on your ref share) and then apple claim back that 17 cents ... this seems pointless but you might be in a jusrtiction/company size etc were you get a sales tax waver so you can then keep your 17cents.  You need to talk to your accountant to figure out if such schemes are possible in your region and for extra complexity they typically only apple to sales you make domestically within your EU nation so you end up needing to seperate out the revenue based on sales to other EU countries (were you cant get the sales tax rebate) vs your domestic EU nation...  for most devs this is realy not worth it unless your large enough or realy love spending time in excel more than programming and then you need to ask why are you a develop and not an accountant...

In some regions you might be able to classify apple as a region provide so that you can claim back the entier 20cents of sales tax and write down the full 1.20 as revenue and Apples fee as a cost.  Most regions do not let you do this as it is considered revenue inflation but some places do and if your a startup wanting to suddenly show a boost in revenue changing how you classify revenue to suddenly include all the money users pay and writing apple off as an expense will give you a nice 15 to 30% revenue increase on your charts...


The reason you cant legaly do this in most places is Apple is the retailer (they own the customer relationship) they are not a payment prossosor like Stripe. I you were a factory making a physical product selling it to a store you would not typicly be permitted to clsiafy the money paid by the user as your revenue and the % cut taken by the store as an expense you would write down the money that the store pays you as revenue. But I have seen quite a few apps do this classification so that they can write down a higher revenue number for investors... legaly or otherwise.

Link to comment
Share on other sites

Link to post
Share on other sites

As usual a bunch of people with no understanding of economics come into the conversation to of course "Its Apple doing it - so it's definitely evil" while completely disregarding the world's macroeconomics to its entirety despite being a fact known to literally everyone over the age of 12.

 

TBC, even I hate that the prices are increasing, but the prices are increasing for everything. Its just part of life like it or not. It's the same reason why iPhones went up in price in most countries except the US - since the dollar is holding strong

Link to comment
Share on other sites

Link to post
Share on other sites

In other news - my lawn guy is charging me $30 to mow the lawn instead of the usual $25 per weekend. That's a 20% increase. And don't get me started about food...

That's par for the course in an inflationary period; a 20% increase across the board for nearly everything.

 

Link to comment
Share on other sites

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share


×