Apple Inc. Price Hike for App Store, Hogs All Possible Revenue from App Sales
Due to fluctuating currencies, Apple Inc. announced on Monday its price hike for App Store across different countries.
The change will take effect the next 24 hours, AppleInsider reports.
The change affects five currencies - Australian dollar, Indian Rupee, Indonesian Rupia, Turkish Lira, South African Rand.
This was announced through an iTunes Connect letter sent to developers, which states that "to account for changes in foreign exchange rates, App Store retail prices will be increased for the following currencies."
The iTunes Connect letter said that the price hike affects both the iOS and OS X App Stores.
Apple will also be increasing prices for retails for the Israeli New Shekels.
However, Apple Inc will decrease "some price tiers" for New Zealand.
The announcement is in no way an April Fool's Day joke as it followed precedence for Japan and the United Kingdom.
Apparently, Apple Inc. normally undergoes price hike to balance its international businesses affected by changing foreign exchange market.
On Oct 17, 2013, Apple Inc. increased the retail price for the Japanese yen.
In July 2011, Apple Inc. also increased its App Store prices for the United Kingdom from £0.59 to £0.69; iOS increased from £5.99 to £6.99.
However, around that time, Australia fortunately had a price drop - AU$1.19 to AU$0.99 - for apps costing USD$0.99 in the US.
As proof of how erratic the foreign currencies could be, there was a price drop in Japan and Switzerland, while there was increase in Mexico and Norway at that time.
Apple Inc. seemed to be hogging all sales possible that it can draw from its apps.
On March 27, 2014, at the office for iPad debut, AppleInsider reported that Microsoft is employing "freemium."
With "Freemium," Office users can download the iPad software without charge, BUT shall pay $99 yearly or $9.99 monthly to subscribe for Office 365 for editing documents.
In a statement obtained by AppleInsider, Apple Inc. confirmed that it obtained 30 per cent cut of all Office 365 purchased from any Office for iPad app. But Apple clarified that it does not acquire revenue from customers with existing subscription or from new purchases made from Microsoft's Web site.
In relation to Office for iPad, Apple Inc acquired revenue through charging publishers for all in-app sales. This set up was purportedly the major obstacle in Microsoft's launch of Office for iPad, AppleInsider reports.