Apple slashes Australian app prices

Tim Grey
14 July, 2011
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Apple has finally redressed a long-running complaint about its App Store, lowering app prices in line with the international exchange rate.

Australian consumers had long paid a premium for Apps, regularly paying higher prices than their American counterparts, despite a stronger local dollar.

But now, according to the Sydney Morning Herald, App prices have been reduced by up to 25 percent, putting them in line with the US store.

The lowest pricing tier was previously $1.19, but now matches the US price of $0.99, a reduction of 17 percent.

At this stage, however, the price reduction only applies to apps. Books, music and Apple hardware continues to retail at a higher price locally than it does overseas, despite the Australian dollar’s high valuation.

The price slash comes after lengthy and vocal criticism from Australian Apple users, and more recently that of Federal Labor MP, Ed Husic, who spoke against the company’s pricing plan in Parliament.

“Congrats to them for starting to be responsive on this issue and lets see what else happens with some of their other prices,” he said.

12 Comments

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  1. Jake says:

    Great! Looks like most things are only a few dollars more than the US counterpart or the same price! iLife and iWork is now much more affordable which is great!

    Lion will be $32 here which is reasonable, though FCP X is still $20 more than the US $300 price…

    HOPE HARDWARE PRICING FOLLOWS!

  2. Nick Dunn says:

    Fantastic. Except that I just paid $349 for FCPX which does not import iMovie projects or events without crashing. So not only have I purchased a piece of software that doesn’t really work (for prosumers, I’m not talking about pro-level users here), but now to rub salt into the wound, they drop the price by $30. Am I a happy Mac user right now? For the first time in 27 years, no I am not.

  3. Brian says:

    Yay…it’s about time!

  4. Rybazoid says:

    Surely apps are more expensive in Australia because apple have to ship the electronic files further? (ducks for cover)

  5. Peter MacProf Geelong says:

    And I just bought iLife 11 on Sunday, followed by Snow Leopard on Tuesday, when I found that, NO, it doesn’t run on OS 10.5.8! That’s (i)Life, I guess.

  6. Rupert Sherwood says:

    Apple like many overseas corporate bodies charges what the¥ think the market can bear in that particular country.

    2 solutions to this rort.

    1. Kick up a fuss….complain to customer services and send emails to the highest executive you can find.

    2. Don’t buy the product and tell them why.

    Oh and don’t accept any bullshit about extra exchange costs, shipping, foreign regulations etc to justify their price hikes.

  7. Steve K says:

    Now let’s see the same for hardware!! Even parity in pricing woule make some sense. Certainly not a premium!

  8. wrightio says:

    a reduction in Aussie hardware pricing to parity with the US would be fantastic. It’s not as if Apple are going broke!
    On principle, it’s the only thing stopping me from buying an iMac right now.

  9. Alan Gibson says:

    this has not happened with lion 31.99 here 29.99 usa

  10. Biallystock says:

    Hardware should also be brought in line.

    The Australian dollar varies between being worth 6-10% more than the US$ and Australia is substantially closer to China, the origin of the HW, than even Hawaii let alone the West or East coasts of the USA.

    But I am glad that Apple has capitulated even though I suspect it was because of the storm caused by the local Consumer Association, an irate Senator and the thousands of potential Mac buyers who cried foul in the local press.

    The change in currency has had so little visible effect on consumer prices, it is really galling. Thank you Apple for showing the way, it will encourage even more switchers in the country that is only behind Singapore in supporting Apple’s products.

  11. WJB says:

    iTunes next please… $A1.69 or A$2.19 for tracks the US pay $0.99 or $1.29 is a rip…

  12. Rob says:

    I thought it was well known that, now, iTunes music price is set by artists and/or record companies.Different regions, different rights, different… you get it. Apple still just take 30%.

    Do we pay more for hardware because of shipping? Seems unlikely as its all made in China these days – unfortunately (standards have slipped). For example a monitor that is US$900 is AU$1,300. It should be $900 with GST!

    And I certainly don’t understand why we pay so much more for Apple software considering the exchange rate. And the % markup is the same as on hardware. I am suspicious and I am pointing at Apple Australia.

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