You may not know it, but developers don’t have complete freedom when it comes to pricing their iOS apps. Whether for paid apps, subscriptions, or in-app purchases, Apple imposes pricing tiers that developers must use.
And that is not about to change. Developers still have to abide by App Store pricing rules. But the good news is that the Cupertino company has just relaxed these rules, giving developers more flexibility.
In its announcement, Apple even indicates that this is the most significant update to the App Store’s policy on app pricing.
One of these changes is that now prices will be able to start at $0.29 in the United States, while the cap is set at $10,000. According to our colleagues at MacRumours, the old limit was $999.99. And app prices couldn’t be lower than $0.99.
However, it should be noted that to offer apps at $10,000, developers will have to make a special request to Apple. At the moment, it is not known which developers would be interested in this new cap. But in any case, just for information, there are already apps at 999.99 dollars, which is the old ceiling. Among these is the CyberTuner app from Reyburn Piano Service.
Apple offers 700 new price points
The App Store also offers developers more price points. Indeed, while the old regulation only allows 200 price levels, the new allows 900.
“To provide developers around the world with increased flexibility, the selection of prices – which will start at $0.29 and can go up to $10,000 on request – will be optimized, with increasing increments by price range (eg. , every $0.10 up to $10; every $0.50 between $10 and $50; etc.)”says the firm.
Another novelty: Apple offers a new tool to help developers adapt to variations in exchange rates or taxes. For example, a Japanese developer who generates the majority of its revenue in Japan could set the prices in Japan as a reference. And depending on changes in exchange rates, its prices in other countries will be updated.
Prices ending in 99 will no longer be mandatory
Otherwise, Apple also allows developers to apply rounded rates. These may, for example, offer rates of the type X.00 dollars or X.90 dollars instead of X.99 dollars. Additionally, developers will be able to offer pricing starting with repeated double digits, such as ₩110,000.
Starting today, these changes apply to apps with auto-renewing subscriptions. Then, they will be available for others in the spring of 2023.
Note that Apple announces this pricing flexibility to developers, while the firm is increasingly under pressure. In Europe, Apple could be forced by future European legislation to end the App Store’s monopoly on the distribution of applications on iOS. And we know that Microsoft already has ambitions to offer a mobile app store to compete with the App Store and Play Store on iOS and Android.