Apple's New Australian App Store Pricing Structure Fully Explained

Apple is now offering effective parity on US pricing for the cheapest iOS apps, but the pricing differences change for more expensive apps. Here's what you need to know.

In the US, Apple's app pricing is very simple: the first ten pricing tiers are $0.99, $1.99, $2.99 and so on up to $9.99. For those first three categories, the Australian dollar pricing is now identical. The best-selling apps in the iTunes store tend to be in the sub-$2.99 category, so for most people this is a clear saving.

For the next seven categories ($3.99 to $9.99), the Australian price is now 50 cents more. Here's the details for the first 10 prices in table form, including what we used to pay:

For apps priced between $US10.99 and $US19.99, the Australian price is now $1 more (so a $US12.99 app costs $13.99 here). For apps above $US20, the Australian price is now $2 more. That's still a saving compared to the old prices: LogMeIn Ignition, for instance, is now $31.99 rather than $36.99. It's not as cheap as an outright conversion, but realistically that was never going to happen. (Prices have also changed on the Mac App Store.)


Comments

    I see an oddity in the 4th and 5th tier. How come the revised price is only $0.50 difference whereas the tiers above and below it has $1.00 or more difference?

      The new prices directly reflect the US pricing. The old prices had bigger gaps between tiers in Australia.

    Angus, why was it realistically not going to happen?

      Two reaons: firstly, there's always going to be a degree of hedging built into the price. Secondly, Apple is very committed to having fixed pricing -- it wants the easy brand recognition of the prices being in consistent bands.

        Thanks!

        While I personally don't think Apple have done as much as they could have, it's certainly a lot better than other international companies. Quite surprised, really.

        Our prices are also GST-inclusive. Not sure if the US store is sales tax inclusive.

    The average US sales tax is 9.64% so these prices are even more comparable than they first might seem.

      Bobby, I don't know where you are getting your information about US based sales tax. But unlike Australia the GST in the US is controlled by the State or Provence. Some states are up around 16% while more populated are sitting around 12%

        I *think* that may be why he said average. As you said, it does vary from state to state with some lower (E.g. New Hampshire has 0%) and some higher depending on how the taxes are collected (e.g. Kansas has a state sales tax of 6.3% but then local retailers collect city and county taxes)

          Yeah, I meant the average. More information here: http://www.forbes.com/2011/02/17/average-sales-tax-rate-record-high-shopping-arizona-25-highest-sales-taxes.html

    Do we know whether this will mean less money for developers? I love fairer pricing, but it would suck if on top of an unfavourable exchange rate Aussie iOS devs also had to wear a 16% price drop.

      Under this new scheme, I got 0.63 cents from 0.99 cents in AU store. (I think previously ~0.70)

      In US, I got 0.70 cents form 0.99 cents in US store.

      I guess it is less money for me...

        On the other hand the lower prices might encourage higher volumes and you could end up making more profit with an unchanged cost of sale. Only time will tell.

          Alternatively, the market could grow wearisome of Apple's mercurial capitulations and change our brand loyalty to Android. Then you would end up earning less.

          That's what I thought too. I don't actually mind that much.

    This is a double edged sword we are playing on. What happens if the Australian Dollar drops back to 75 US cents? No one has thought of this impact. We will soon pay back in kind.

      buy now, don't buy then?

      apple will just adjust the price again. 3 years later

    As a developer i'll have to see what happens with payments. On the one hand i'll lose out in AUD (one of my biggest markets) but gain in GBP (second biggest market). It's ultimately much more fair now so can't complain.

    Will we ever see a similar price change for music?

    eBay. USA iTunes vouchers. 'nuff said.

    In the US, sales tax is added at time of purchase and typically not quoted as part of the purchase price.

    In AU it's not legal to quote EX GST pricing for customer-facing retail purposes.

    I'd say that what's going on is that Apple has decided that at the bottom of the scale it isn't worth adding GST (e.g. no point adding GST to a $1 app) but as pricing goes up, GST gets harder to ignore.

    David

    It's good to see apple making some progress on there pricing structure!

    I think the key is that the entry level price has been lowered. The more expensive apps are normally used by professionals who make an income from there purchase.

    So it does seem fair for these to go up (percentage wise) to subsidise the cheaper ones (games/fun apps/useful utils) That most of us all use!

    I can't see this as a step backwords at all!

    Almost the same average price of U.S sales and Australian sales..
    http://www.au.mobilepundits.com/

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