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Apple Changed App Pricing Worldwide

applehardwareApple responded to the currency fluctuations that happened in the past few years by changing the prices of software apps from Canada to Europe. The change took place last week and it was a very important and calculated move that Apple made in hopes it would regain some control over the prices of their applications as a reaction to currency fluctuations.

Apple has been very reserved in the past in making such currency changes and corrections, but it seems that Apple is determined to do its best not to lose money.

Apple told software makers that had applications for sale in the App Store that it was increasing the app prices in the E.U., Canada, Russia and Norway because of taxes and foreign exchange rates. The new app pricing went into effect last week.

So what does the app pricing change mean? Well, in Europe the basic price app was 0.89 Euro cents and now it is 0.99 Euro cents. In Canada, the basic app price was 99 cents and now is $1.19. Another very important move made by Apple was boosting iPhone prices in Russia in December of 2014 when the ruble plunged. It also halted online sales, which is an unprecedented move.

Application prices are set by ties, Apple doesn’t nothing more than adjust them across the world, translating them into local currency. In Europe, Apple adjusted the app prices in 2012, in Asia in 2014 and never in Canada. It was revealed by Apple last week that revenue generated by sales in the App Store rose by 50% in the first week of the New Year. In 2013, more than $10 billion was spent in the App Store. The company gets the vast majority of its annual revenue from outside the U.S.

The App Store team sent out mails to developers to announce them of the change.

Within the next 36 hours, prices on the App Store will increase for all territories in the European Union as well as in Canada and Norway, decrease in Iceland, and change in Russia. These changes are being made to account for adjustments in value-added tax (VAT) rates and foreign exchange rates. We will simultaneously update the Pricing Matrix in Rights and Pricing in My Apps on iTunes Connect.

This app pricing change was expected to happen in Europe, because it recently passed new legislation that increased the price of MP3s, eBooks and apps by 6.5% in most of European Union countries. The change went into effect on the first day of 2015 and initially it was believed that the price change would not be felt by consumers, as companies would simply absorb the increase, but it seems that consumers would deal with the price changes.

Almost all world currencies have declined against the U.S. dollar in the past year, mainly because the economy of the States is on an upswing. The Euro has declined about 13% against the U.S. dollar in six months, and the Canadian dollar is at its lowest in the past 5 years when compared to the U.S. dollar.

Apple’s Most Successful First Week of the New Year

record-breaking sales

Today, Apple released a new press statement in which it revealed that it had the most successful week to date for their App Store. Apple made public the fact that the App Store customers managed to set a new record during the first week of 2015 by spending almost a half a billions dollars on in-app purchases and apps. In terms of sales, the first week of January was the most successful day in Apple’s history!

Aside from congratulating the big giant, we must add that the new and record-breaking figures aren’t much of a surprise. The previous year, 2014, was also an incredible year for Apple and the App Store, in terms of sales. Billings rose 50%, which means that $10 billion was spent for apps in the App Store for developers, which brings the total earnings for developers to $25 since the App Store came into being.

So what contributed to these record-breaking sales? Well, mostly it was the massive success that the iPhone 6 and iPhone 6 Plus had. The iPhone sales also broke some records, for example the opening weekend was a record-breaking weekend, as Apple sold the most iPhones it ever did in one single weekend.

Apple has this to say in their press release concerning the record-breaking first week sales:

 “This year is off to a tremendous start after a record-breaking year for the App Store and our developer community,” said Eddy Cue, Apple’s senior vice president of Internet Software and Services. “We’re so proud of the creativity and innovation developers bring to the apps they create for iOS users and that the developer community has now earned over $25 billion.”

But what else helped Apple sell a record-breaking number or apps? Sure, iPhone 6 and iPhone 6 Plus were huge, but it had to be more. Well, Apple provided us with the answer to this question. The introduction of HealthKit was something that many people were expecting. HealthKit can be paired up with a large number or accessories and apps, which makes it more than just an app, it makes it a tool.

Outside the United States, Apple added a new payment option for App Store customers in China, called UnionPay. Apple had a bit of a rough patch in launching the new iPhone 6 and iPhone 6 Plus in China, but once that was smoothed over, things went better than expected. UnionPay has brought in more App Store customers, which means more money for Apple and App Store developers.

Also, with the launch of iOS 8’s update, iPhone 6 and iPhone 6 Plus owners got the eagerly-awaited Apple Pay, which makes payment a breeze. You don’t have to open any apps, just point your iPhone 6 and pay. Unfortunately, Apple Pay is only available to iPhone 6 and iPhone 6 Plus owners, because these two models are the only ones that have a NFC (near-field communication) chip that enables safe payment.

In the press release, Apple also revealed how the company has created or supported a little bit over 1,000,000 jobs inside the U.S. Apple has 66,000 direct employees in the United States.

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iPhone 6 Plus Available for Flight Attendants of United Airlines

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More than 23,000 flight attendants of the US company United Airlines will receive an iPhone 6 Plus for work, at the beginning of 2015. This statement was made on Wednesday by United Airlines and it comes after they announced in 2011, the massive … [Continue reading]

Best iPhone Apps of 2014

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Whether you’re still using your old iPhone 4 or 4s or you’ve upgraded to the brand new iPhone 6, you need apps. Without them, the iPhone is simply an expensive tool to call your mom and dad. Let’s take a look at a list of the most popular and best … [Continue reading]

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