Apple changes App Store pricing worldwide due to currency swings

“Apple Inc. changed the prices of software applications from Canada to Europe today, in one of the company’s more comprehensive global responses to currency swings in recent years,” Tim Higgins, Ari Altstedter and Daniele Lepido report for Bloomberg.

“With the U.S. dollar rising, Apple earlier this week told software makers selling programs through its online App Store that it’s increasing app prices in the European Union, Norway, Canada and Russia because of foreign exchange rates and taxes,” Higgins, Altstedter and Lepido report. “The changes took effect today, with the entry-level price for apps in Canada rising to $1.19 from 99 cents. In Europe, the basic app price jumped to 0.99 euro from 0.89 euro.”

“While Apple has previously raised the prices of programs in its international app stores, the company is typically reluctant to make such changes, said Slaven Radic, chief executive officer of app-developer consultancy Tapstream Network Inc. ‘This is very unique,’ Radic said. ‘They’re very measured about this — sometimes they’ll lose money if they can avoid showing too much price movement on things,'” Higgins, Altstedter and Lepido report. “By rolling out the pricing changes, Apple is signaling it believes the U.S. dollar is poised to remain strong this year. ‘They’re clearly reading the tea leaves, in terms of oil prices and the relative strength of the U.S. economy and weakness elsewhere, and saying the strength of the dollar is not just a transitional event,’ Andrew Bartels, an analyst at Forrester Research Inc., said in an interview. ‘Without making these changes, Apple would be looking at a very significant impact on its revenue.'”

Read more in the full article here.

5 Comments

  1. Thank God that Apple can up prices almost everywhere just because the American dollar is worth more than it used to be.

    It’s a good thing too because Apple was running out of money on top of everything else.

    s/

    1. Yes, because the *APP DEVELOPERS* who weren’t getting as much from that 70% as they used to, are part of Apple’s payroll.

      The app price increases affect me so it’s not like I’m happy they’ve done this, but I’m also not blind to the reasonable excuse for app price increases.

      Increases in actual Apple hardware and software prices, sure, we can talk about that when entry-level unlocked iPhone price ($649 USD) jumps from the current $750 CAD to $800 or higher.

      Right now though things that’ve been around more than a year, like the Airport Extreme, are a relative bargain: it’s $199 in both USD and CAD when the exchange rate says it should be $234 CAD… hmm, that just tipped the scales in my deciding to order one, while we’re still ahead.

  2. Samsung just cut it’s prices again and nothing is selling. They’ll just have to keep cutting util they hit the plank length but it’s not going to look too good if you’re a Smugscam investor.

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