Have you ever wondered why you never come across app costing 10 cents in the App Store?
The reason for that is very simple. Apple charges from 30 to 40 percent of a commission from each purchase of an app. Whether you think it is right or wrong here are the key things to understand App Store Pricing Matrix.
Apple created a pricing matrix in order to manage transactions in App Store on the global level and to avoid very small sums of money in the financial settlement.
To do this a system of price tiers has been introduced.
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A developer (app author) has the right to settle the price for their product by choosing the right tier. There are almost 100 tiers. For instance, Tier 1 is equal to $0.99 but also €0.89.
The latest price of a tier for each country. Click here to open the table
How does it work in PressPad?
After registering in the PressPad Magz and uploading the magazine’s PDF file a proper tier should be chosen. The selected sum of money is the price for the final user.
To make it simpler we provided in our panel tier rate in dollars. However, one should remember that the App Store calculates the sums according to the mandatory currency. For instance, if the price of an app magazine is 0.99 US for App Store users registered in the USA, the same magazine will cost 0.89 EUR for the ones in Europe.
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Can I change the price of a magazine?
You can settle the price for each magazine separately. It is especially useful while publishing special editions or archive issues. In such a case you can set a specific price of an issue you choose or even make it available for free.
We advise studying the table below containing App Store Pricing Matrix with tier prices in advance.
Source: iTunes Connect (latest update: May 2015)
Alternative Tiers
At the end of June Apple introduced alternative tiers. Check the table below. They are introduced to unify prices for App Store users from USA, Canada, Australia and Europe. The only change is in Eurozone. Alternative Tier 1 = €0,99 = $0.99.
System of Tiers in Apple App Store
We realize that it could be a bit complicated. If you want to discuss your approach towards having a digital magazine on App Store or Google Play get in touch with us.
Contact us for a free consultation and to discuss digital publishing needs for your magazine.
You can also start immediately risk-free with your mobile app — it means that we’ll build a demo app for you and we ask for payment after a free trial period only when you decide to stay with us.
Pricing strategy is an important and interesting topic for many people. Have you ever considered how our emotions affect store prices?
