App Store gets new low-cost pricing tiers in Europe

App Store gets new low-cost pricing tiers in Europe

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Downloads have grown 70 percent over the last year.
Downloads have grown 70 percent over the last year.
Photo: Ste Smith/Cult of Mac

Apple today introduced two new low-cost pricing tiers for macOS and iOS apps sold in Europe. The change comes as price increases came into effect in Tuesday morning’s refresh as a result of exchange rate fluctuations.

So there’s good news and bad news for App Store customers in Europe. Although most apps now cost more as a result of today’s increases, developers can choose to offer their titles under new low-price tiers starting at just €0.49.

Some apps and games are already available under this new tier, dubbed “alternative price tier A.” Apple has also added an “alternative price tier B” at €0.99. These tiers were previously only available in China and India.

For titles still available under previous tiers, customers can expect to pay more. Apps that were €0.99 now cost €1.09 under tier 1 pricing, while apps that were €1.99 are now priced at €2.29 under tier 2 pricing.

The changes for tiers 1 through 10 can be seen in the graphic below.

App Store price increases for Europe.
App Store price increases for Europe.
Photo: iFun

Apple has also increased App Store prices for customers in Denmark and Mexico, while those in Taiwan now have to pay a value added tax (VAT) rate of 5 percent on apps and in-app purchases.

“On May 1, 2017, a value added tax (VAT) rate of 5% will go into effect for customers in Taiwan buying apps and in-app purchases,” Apple explains.

“We will administer the collection of taxes from customers and the remittance of taxes to the appropriate tax authority in Taiwan. Your proceeds will be reduced accordingly, and will be calculated based on the tax exclusive price.”

Via: iFun