Apple’s App Store pricing changes: What businesses and developers need to know

Apple has announced massive upgrades to its App Store pricing functionality in a bid to improve currency automation and a developer’s ability to set specific prices across different countries and regions.

Here’s what you need to know.

The App Store is getting additional price points

First up, the App Store will be allowing 700 new price points, bringing the total up to 900.

The App Store will now offer price tiers that start at $0.29 and go as high as $17,999 — although any prices over $10,000 will have to be requested from Apple. I’ll also personally have some questions for you.

Price points will increase incrementally in each tier. For example, they will go up by $0.10 increments up to $10, and $0.50 increments between $10 and $50.

Apple is also introducing the ability to utilise repeating digits and rounded price endings. For example, you could price an app at $88 or perhaps $91.00.

Apple says this functionality is particularly relevant for bundles and annual subscriptions and plans.

Upgrades to multiple global storefronts

The other big change is an ability for app developers to nominate a local storefront (for example, Australia) that can be used as the basis for generating pricing (including local taxes) across other storefronts in other countries. This can be done automatically and with different currencies.

Forty-five currencies will be available across 175 different storefronts, meaning you’ll have the ability to automate any that are supported if you sell in multiple markets. However, if you prefer to handle each one manually, this will still be an option.

There will also be an upgrade to the App Store’s pre-existing equalisation tools used for price management across countries. Developers will be able to enable their local currency to stay consistent even as foreign markets change. For example, you could lock your AUD pricing on the Australian storefront but allow for the price in other storefronts to change if there’s a swing in foreign pricing or tax rates.

Will the 30% App Store commission change?

It’s worth noting the changes won’t affect the App Store’s current commission rate. Outside of exclusive partnerships, Apple takes a 30% cut of most App Store purchases, including those bought in-app.

The exception to this are for companies that are part of Apple’s Small Business Program. Apple cuts the commission rate to 15% for any business in the program.

Apple has also confirmed that developers who use auto-renewing subscriptions and retain a subscriber for more than a year will also only have to pay a 15% commission.

When will the App Store price changes start?

The price changes are available now for apps that offer auto-renewable subscriptions. For all other apps and in-app purchases, the update will roll out sometime in Spring 2023.

The aforementioned storefront upgrades will also be available in Spring 2023.