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Apple to increase app store prices, pressured by tough competition?

Apple, a technology brand most of us are familiar with, is increasing the price of iOS apps and content in the App Store in five countries. They are,namely, the Australian Dollar, Indian Rupee, Indonesian Rupiah, Turkish Lira or South African Rand.

The announcement came earlier this week when the company emailed developers of iOS apps explaining the adjustments, which are being made due to changing exchange rates. No announcements were made on how much higher the rates and prices will be.

Image Credit: uafsunstar
Image Credit: uafsunstar

Here’s the email sent to developers by Apple:

Dear customer,

Within the next 24 hours, the following changes will be made to pricing on the App Store.

To account for changes in foreign exchange rates, App Store retail prices will be increased for the following currencies:

  • Australian Dollar
  • Indian Rupee
  • Indonesian Rupiah
  • Turkish Lira
  • South African Rand

Additionally, retail prices for Israeli New Shekels and some price tiers for the New Zealand Dollar will be decreased.

Price adjustments on the App Store are made periodically due to changes in foreign exchange rates. Within 24 hours, you will see the new Pricing Matrix in the Rights and Pricing section of Manage Your Apps on iTunes Connect.

Updates to iOS Paid Applications and Mac OS X Paid Applications contracts will be available on the iTunes Connect website. To view all current and outstanding contracts, see Contracts, Tax, and Banking on iTunes Connect.

Regards,

The App Store team

Apple feeling the competition from Xiaomi and Samsung?

Xiaomi Mi3 Smartphone
Xiaomi Mi3 Smartphone

Earlier last month, Apple also announced that it is retiring the old line of iPad 2 from the Apple Store Online, replacing it with the more expensive iPad Retina Model. At the end of February, Apple has also made its Apple Gift Card available at selected retailers in Singapore.

Along with the adjustment in foreign exchange rates, one might think that Apple is working very hard to ramp up revenue for the company. While this is not the first time Apple has adjusted its app prices in response to foreign exchange fluctuations. Its previous adjustment was in mid-2011 when it reduced App Store prices in several markets including Australia and Japan.

Apple’s competitors Samsung and Xiaomi have been aggressive in Southeast Asia the past few weeks. Samsung has made its upcoming new Samsung S5 devices available for pre-orders at all major telcos in Singapore. Xiaomi, Apple’s equivalent in China, has also expanded its operation internationally to Singapore and Taiwan. During the launch of Xiaomi’s devices in both the countries, the limited number of devices were snapped up within minutes by consumers.

Is Apple feeling the pressure from its competitor’s aggression?

Also read: New iPhone, likely to be called iPhone 6, expected to be launched in September

 

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