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Why is the minimum app store price 99c/59p?

06-17-2009, 07:38 PM
#1
Joined: May 2009
Posts: 633
Why is the minimum app store price 99c/59p?

Does anyone know?

This wasn't a problem when it was games being downloaded, but I can see it being an issue if every single in-app purchase has to cost at least 99c/59p.

Is there any reasoning behind this figure?
06-17-2009, 07:47 PM
#2
Joined: Sep 2008
Location: Canada
Posts: 2,799
Simplicity.

Can in-app downloads not be free?

06-17-2009, 07:52 PM
#3
Joined: May 2009
Posts: 633
Quote:
Originally Posted by starjimstar View Post
Simplicity.

Can in-app downloads not be free?
I don't think they would have gone to the bother of introducing micro transactions in 3.0 if they were about to make them free!
06-17-2009, 10:02 PM
#4
Joined: Dec 2008
Location: JERICHO, KS
Posts: 689
I think he means to make them like $.50 or $.25.

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06-17-2009, 10:07 PM
#5
Mainly because any lower and the credit card handling charges would make the transactions unprofitable. As it is, Apple doesn't make much at all from the App Store.
06-17-2009, 10:29 PM
#6
Joined: Dec 2008
Posts: 6,509
Anything less than 99c is pointless. Neither Apple nor the devs would profit, and honestly, not even arcade games at movie theaters are less than a dollar.
06-17-2009, 11:20 PM
#7
Joined: Jun 2009
Location: Oklahoma, USA
Posts: 1,085
Quote:
Originally Posted by Zwilnik View Post
Mainly because any lower and the credit card handling charges would make the transactions unprofitable. As it is, Apple doesn't make much at all from the App Store.
Do you mean with the entire app store? While it's true that they get 30% of all purchases and that might mean little, take all of the priced apps combined with 30% and you would have a small fortune right there.

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06-17-2009, 11:28 PM
#8
Joined: Feb 2009
Location: Florida
Posts: 3,215
Quote:
Originally Posted by ian1969uk View Post
Does anyone know?

This wasn't a problem when it was games being downloaded, but I can see it being an issue if every single in-app purchase has to cost at least 99c/59p.

Is there any reasoning behind this figure?
on the 11th day God said "all apps must be sold at a mininum of 99 cents, with 1 dollar increments, unless free" and so it was to be that all apps start at 99 cents.

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06-18-2009, 12:50 AM
#9
Quote:
Originally Posted by xVietx View Post
Do you mean with the entire app store? While it's true that they get 30% of all purchases and that might mean little, take all of the priced apps combined with 30% and you would have a small fortune right there.
Most or all of which goes to infrastructure and support costs. There's a reason why developers usually get more like 30% in setups like this (for example, online game portals), not 70%. If Apple wanted to be making a reasonable profit on the App Store, they'd reverse the percentages they currently have. Instead, they use it as an incentive to get people to buy the hardware, which is where they make the profit.

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06-18-2009, 12:58 AM
#10
Joined: Dec 2008
Location: SG
Posts: 3,549
Apple is known to be pretty stringent about how they price their products (think iTunes and the whole NBC issue). So I think 99 cents just makes it easier for them to calculate their expected profit (lower bounds etc?).

Any statisticians here? I could be wrong lol

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