App Store Price Hike Now Live, but Paid Apps Can Still Be Rs. 10.

  • Apple had announced the decision to hike prices earlier this week
  • The standard base price is now Rs 80, up from Rs. 60
  • The alternate tier pricing, however, remains unchanged
Earlier this week, Apple reveal that it will increase the App Store India prices based on changing exchange rates and taxation policies. The new prices are now live on the App Store and Mac App Store, and as expected, there has been a 33 percent rise in the standard base price.
Apple will now charge Rs. 80 for every $0.99 purchase moving forward, instead of the earlier charge of Rs. 60. A $1.99 purchase will now cost Rs. 160 instead of Rs. 120 earlier. The rest of the new pricing is as follows:
Price Tiers
USD Price ($)
India New Price (Rs.)
India Old Price (Rs.)
Free
0
0
0
Tier 1
0.99
80
60
Alternate Tier A
0.99
10
10
Alternate Tier B
0.99
30
30
Tier 2
1.99
160
120
Tier 3
2.99
250
190
Tier 4
3.99
300
250
Tier 5
4.99
400
300
Tier 6
5.99
500
370
Tier 7
6.99
550
420
Tier 8
7.99
600
490
Tier 9
8.99
700
550
Tier 10
9.99
800
620
Tier 11
10.99
850
670
Tier 12
11.99
900
750
Tier 13
12.99
1000
790
Tier 14
13.99
1100
850
Tier 15
14.99
1200
920
Tier 16
15.99
1250
990
Tier 17
16.99
1300
1050
Tier 18
17.99
1400
1100
Tier 19
18.99
1500
1150
Tier 20
19.99
1600
1200
The price structure is now reflecting on the App Store.
As is evident from the above table, the pricing for alternate tier A and tier B prices in India - special low prices for select markets - remains unchanged.
For those unaware, Apple sets its prices on the App Store in any region against the US dollar. This would lead to rather steep prices for paid apps in App Store. To combat this problem, Apple introduced alternate low-price tiers in many emerging markets. Thanks to these new tiers, developers can continue to charge, say, $0.99 for an app in the US App Store but charge customers in India Rs. 10 (Alternate Tier A) or Rs. 30 (Alternate Tier B).
This Alternate tier pricing, first introduced in India in 2015, will remain unchanged. This gives developers an option to reduce the prices of their apps, especially in emerging markets where users may not be able to afford equivalent dollar pricing.
Apple announced last month that it would be charging a service tax rate of 14 percent as required by new laws along with additional levies of 0.5 percent for Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC) for apps and in-app purchases bought by Indian consumers from December 1. These changes, along with the falling Indian rupee, are thought to be the reason for the price hike.
Apple has also hiked prices of apps in Romania, UK, Turkey, and Russia in line with changes in local taxation policies and currency rates

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