JOIN USApple revamps pricing structure on App Store
Compared to Android ecosystem, Apple App Store has been a lucrative platform for app developers. Yes, 30 per cent gatekeeping charge is a little high, but it is still the best among the three popular app stores. Also, in recent years, Apple has reduced the fee for upcoming and smaller companies with low annual revenue.
Now, the Cupertino-based company has introduced a new pricing structure that will improve the app development companies to scale up their revenue model.
It will allow app developers to offer in-app services at 600 new price points to customers and if need be, the company can ask Apple to add 100 more, bringing the tally to 900. Earlier, there were 200 price points.
Starting this week, Apple will allow subscription-based apps with auto-renewal options such as Netflix, Amazon Prime Video, Hulu, and other OTT (Over-The-Top) apps to offer their services in up to 900 pricing points. Others will be able to offer new prices in mid-2023.
"Developers of subscription apps will also be able to manage currency and taxes across storefronts more effortlessly by choosing a local storefront they know best as the basis for automatically generating prices across the other 174 storefronts and 44 currencies, " Apple said.
Also, a foreign app developer who offers services on several international markets will be offered App Store’s global equalization tools to make a simple and convenient way to manage pricing across the world.
"In each of the App Store’s 175 storefronts, developers will be able to leverage additional pricing conventions, including those that begin with two repeating digits (e.g., ₩110,000), and will be able to price products beyond $0.99 or €X.99 endings to incorporate rounded price endings (e.g., X.00 or X.90), which are particularly useful for managing bundles and annual plans," Apple noted.
In India, app developers will be able to offer services for as low as Rs 9 and as high as Rs 9,99,900.
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