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Apple changes minimum pricing on apps in Europe

updated 03:48 am EDT, Fri October 26, 2012

More regions now have prices in local currencies as well

In addition to updating the Apple Store in the US and elsewhere for pre-orders of the new iPad mini on Thursday, the company has also been rolling out adjustments to foreign App Stores, including adding to the list of countries that show pricing in native currencies and raising prices throughout Europe. Countries on the Euro, for example, are seeing a new minimum app prices of 0.89 ($1.15), up from 0.79 (approximately $1). Apple is also updating iTunes Connect to reflect the changes in currency calculations.

Minimum and low-priced apps (roughly corresponding to the 99 cent to $2 price range for the US) are seeing increases up to 25 cents, with proportionate increases in the developer payout. More expensive apps have seen higher price increases, up to 1 for apps over the 6 mark. While Apple hasn't commented on the reason for the price increases, the fluctuation of the now-weaker Euro means that exchange rates have changed significantly over the last year, and the increases are likely adjustments to respond to that.

Apple's cut of the sale remains at the same standard for Europe as before -- 40 percent of the selling price, with developers getting 60 percent. The company gets a larger cut in Europe because it must pay 15 percent value-added tax (VAT) on its income from sales based on its European headquarters in Luxembourg.

Another change noted by users in various countries is that the store has changed to reflect prices in local currency rather than the default US dollar. India, Indonesia, Israel, Russia Saudi Arabia, South Africa and the UAE have all seen prices changed to be listed in local currency, according to an email from Apple to app developers.





by MacNN Staff

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