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Apple increases App Store pricing tiers as it seeks to give more power to developers

Apple takes a cut of every purchase made through the iOS or Mac App Store, whether it be a paid app, in-app purchase, or in-app subscription.

Apple first launched the App Store in 2008, allowing iPhone users to download the apps. (Image credit: Reuters)
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Apple on Tuesday said it is expanding App Store pricing tiers, giving developers the flexibility to set prices of apps depending on the country or region. Apple says the move will benefit developers immensely as they will get the control to price their app in 45 currencies throughout 175 storefronts.

When developers submit their apps to the App Store, they do not choose a price for their app – they choose a price tier. Under the new App Store pricing system, all developers can select 900 price points, which is nearly 10 times the number of price points previously available to most apps. Each price tier corresponds to a different price that the app will sell for on the App Store, which is in the range of Rs 9 to Rs 1 million. In the India App Store, for example, prices will increase every Rs 5 up to Rs 500, and every Rs 10 between Rs 500 and Rs 1500.

The new price enhancements will be available for apps offering auto-renewable subscriptions starting today and for all other apps and in-app purchases in Spring 2023.

With the new App Store pricing system in place, a game developer, for example, can choose one price in India and have a different price for the US market. Apple says the new Apple Store pricing tiers will simplify the global pricing process for developers – after all, the App Store operates in 174 countries, with each country having its own currency. Even if the value of the price tiers in each of the different currencies may be equivalent in value, currencies fluctuate in value all the time.

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Apple first launched the App Store in 2008, allowing iPhone users to download the apps. The store offered only about 800 apps for download initially, but today the App Store boasts millions of apps. While the App Store has been credited for establishing the app economy, Apple has come under fire lately for its business practices. Regulators are looking into whether Apple’s control of its App Store platform could be anti-competitive. The App Store is the only way for most users to install software on an iPhone

Apple takes a cut of every purchase made through the iOS or Mac App Store, whether it be a paid app, in-app purchase, or in-app subscription. Apple takes 30 per cut of paid apps and in-app purchases. The cut for paid subscriptions dropped to 15 per cent after a year. Big developers, including Epic and the makers of Tinder, say Apple makes their own businesses significantly less profitable.

First published on: 06-12-2022 at 23:30 IST
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