Apple aligns app prices with US

 

Introduces volume app purchasing.

Apple has cut the price of many apps in the Australian App Store, compensating for a stronger exchange rate and long-running consumer complaints over the price discrepancy with the United States.

The changes meant apps previously available for $1.19 in Australia could now be purchased for $0.99.

Apple gave many iOS developers a days' warning in making price changes within the App Store, in an email circulated to those registered on the company's iTunes Connect app sales monitoring platform.

It said the changes may affect purchasing of applications during a seven hour window.

"To avoid interruptions to the availability of your apps, do not make price changes during this time," it said.

An Apple spokesman said that price adjustments came as a result of changes in foreign exchange rates and local tax laws.

Price changes appeared to affect other countries, including Mexico, UK, Switzerland, Japan and Norway. Some countries received price rises for applications, however.

Russell Ivanovic, a developer with company Shifty Jelly which produced apps such as Pocket Weather, said the change was welcome for consumers but left developers relying on Australian sales in the cold.

"The Australian dollar has been hovering above the US dollar for a long time now so it always seemed weird that we were paying more," he said.

"As a developer who makes most of our money selling Australian applications, it is a little bit concerning."

The 10 percent GST on Australian apps added to a significant drop in the eventual income earned by developers, ultimately dropping to below what US purchasers would normally pay for the same app.

US applications do not include tax on their list pricing, while Apple still takes a 30 percent cut from all apps sold through the store.

"Since we live in Australia, and can't really take advantage of our high currency, that means we lose out overall," he said. "Still I'd emphasise that for consumers this is very good news."

Another local developer iTnews contacted said he would have to consider increasing the price of his apps in the store to mitigate against the changes.

Those Australian developers with more globally inclined applications, such as Melbourne-based Firemint, would unlikely feel the same impact from the price decision.

Labor MP Ed Husic welcomed the changes, after he raised concerns around the price discrepancies between US and Australian software and hardware from Apple and other US-based manufacturers.

Husic has gained an audience with Apple Australia managing director Tony King next week, after airing his concerns recently in Parliament and writing to King personally to discuss the matter.

However, Husic ruled out suggesting legislative changes to enforce more standard pricing between countries.

"I think it's a great move on the apps, that they started to have the apps more in line with movements in currency but I'm looking also forward to talking to them about the differences in hardware, especially anything that would be launched in the short term with new models with their MacBooks," he said.

"A lot of companies tend to move quickly in adjusting prices upwards and I think that's an issue that businesses need to be able to respond to quickly."

He pointed to consumers' continued discussion around the pricing differences as a possible catalyst for Apple's decision, rather than this own actions.

Businesses gain volume purchases

The price changes to the App Store coincided with a move by Apple to introduce volume purchasing of applications for businesses.

Available initially in the US only, the program would allow businesses to centrally manage distribution of third-party and custom applications for employees by acquiring batch redemption codes for devices.

These could be sent to employees by mail, or controlled through a central iOS enterprise management platform used by the company.

The program only appeared to offer the purchase of volume quantities at the same initial app price, rather than volume discounts.

Copyright © iTnews.com.au . All rights reserved.


Apple aligns app prices with US
 
 
 
Top Stories
Frugality as a service: the Amazon story
Behind the scenes, Amazon Web Services is one lean machine.
 
Negotiating with the cloud email megavendors
[Blog post] Lessons from Woolworths’ mammoth migration.
 
Qld govt to move up to 149k staff onto Office 365
Australia's largest deployment, outside of the universities.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...

Latest VideosSee all videos »

The great data centre opportunity on Australia's doorstep
The great data centre opportunity on Australia's doorstep
Scott Noteboom, CEO of LitBit speaking at The Australian Data Centre Strategy Summit 2014 in the Gold Coast, Queensland, Australia. http://bit.ly/1qpxVfV Scott Noteboom is a data centre engineer who led builds for Apple and Yahoo in the earliest days of the cloud, and who now eyes Asia as the next big opportunity. Read more: http://www.itnews.com.au/News/372482,how-do-we-serve-three-billion-new-internet-users.aspx#ixzz2yNLmMG5C
Interview: Karl Maftoum, CIO, ACMA
Interview: Karl Maftoum, CIO, ACMA
To COTS or not to COTS? iTnews asks Karl Maftoum, CIO of the ACMA, at the CIO Strategy Summit.
Susan Sly: What is the Role of the CIO?
Susan Sly: What is the Role of the CIO?
AEMO chief information officer Susan Sly calls for more collaboration among Australia's technology leaders at the CIO Strategy Summit.
Meet the 2014 Finance CIO of the Year
Meet the 2014 Finance CIO of the Year
Credit Union Australia's David Gee awarded Finance CIO of the Year at the iTnews Benchmark Awards.
Meet the 2014 Retail CIO of the Year
Meet the 2014 Retail CIO of the Year
Damon Rees named Retail CIO of the Year at the iTnews Benchmark Awards for his work at Woolworths.
Robyn Elliott named the 2014 Utilities CIO of the Year
Robyn Elliott named the 2014 Utilities CIO of the Year
Acting Foxtel CIO David Marks accepts an iTnews Benchmark Award on behalf of Robyn Elliott.
Meet the 2014 Industrial CIO of the Year
Meet the 2014 Industrial CIO of the Year
Sanjay Mehta named Industrial CIO of the Year at the iTnews Benchmark Awards for his work at ConocoPhillips.
Meet the 2014 Healthcare CIO of the Year
Meet the 2014 Healthcare CIO of the Year
Greg Wells named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at NSW Health.
Meet the 2014 Education CIO of the Year
Meet the 2014 Education CIO of the Year
William Confalonieri named Healthcare CIO of the Year at the iTnews Benchmark Awards for his work at Deakin University.
Meet the 2014 Government CIO of the Year
Meet the 2014 Government CIO of the Year
David Johnson named Government CIO of the Year at the iTnews Benchmark Awards for his work at the Queensland Police Service.
Q and A: Coalition Broadband Policy
Q and A: Coalition Broadband Policy
Malcolm Turnbull and Tony Abbott discuss the Coalition's broadband policy with the press.
AFP scalps hacker 'leader' inside Australia's IT ranks.
AFP scalps hacker 'leader' inside Australia's IT ranks.
The Australian Federal Police have arrested a Sydney-based IT security professional for hacking a government website.
NBN Petition Delivered To Turnbull's Office
NBN Petition Delivered To Turnbull's Office
UTS CIO: IT teams of the future
UTS CIO: IT teams of the future
UTS CIO Chrissy Burns talks data.
New UTS Building: the IT within
New UTS Building: the IT within
The IT behind tomorrow's universities.
iTnews' NBN Panel
iTnews' NBN Panel
Is your enterprise NBN-ready?
Introducing iTnews Labs
Introducing iTnews Labs
See a timelapse of the iTnews labs being unboxed, set up and switched on! iTnews will produce independent testing of the latest enterprise software to hit the market after installing a purpose-built test lab in Sydney. Watch the installation of two DL380p servers, two HP StoreVirtual 4330 storage arrays and two HP ProCurve 2920 switches.
The True Cost of BYOD
The True Cost of BYOD
iTnews' Brett Winterford gives attendees of the first 'Touch Tomorrow' event in Brisbane a brief look at his research into enterprise mobility. What are the use cases and how can they be quantified? What price should you expect to pay for securing mobile access to corporate applications? What's coming around the corner?
Ghost clouds
Ghost clouds
ACMA chair Chris Chapman says there is uncertainty over whether certain classes of cloud service providers are caught by regulations.
Was the Snowden leak inevitable?
Was the Snowden leak inevitable?
Privacy experts David Vaile (UNSW Cyberspace Law and Policy Centre) and Craig Scroggie (CEO, NextDC) claim they were not surprised by the Snowden leaks about the NSA's PRISM program.
Latest Comments
Polls
Which bank is most likely to suffer an RBS-style meltdown?





   |   View results
ANZ
  21%
 
Bankwest
  9%
 
CommBank
  11%
 
National Australia Bank
  17%
 
Suncorp
  24%
 
Westpac
  19%
TOTAL VOTES: 1426

Vote