Apple’s cash accumulation reaches new levels every year and soon they will touch $300bn. Its premium products are performing below expectations, so the revenue has to be collected from other services. Ten years ago, they were thinking about a secondary revenue source and then the idea of App Store came in their minds. App purchases give them constant revenue and it is influenced by global economic conditions. Exchange rates vary all the time and consequently App prices go up. Some customers will be annoyed, but changing a platform is a complicated process. Developers got a message from Apple and Norway was the country which was affected this time.
A mere 15‐20% increase will create massive difference and the precise amount will be notified later. The 9 Kroner apps will now cost a little more and the new price is approximately 11 Kroner. No specific work is needed from the developer’s end as automatic updates will take place. Every user will get a company email and the price hike will be mentioned there. In Brazil, Apple raised product prices and they are planning on earning more revenue from there. People will find it very hard to buy phones now, as some handsets became too expensive. Apple’s strategy is complicated and they don’t have a fixed strategy.
More reliable and more innovative, App Store challenged Play Store and defeated them. Many users raise the price issue, but then again, Apple always prefers quality products. The company pioneered this revolution and Google capitalized much later. Major app makers prefer Apple’s store as the scope of income is more here. Moreover, developers can earn a huge amount of money, by simply coding. Developer programs are affordable, but recently Apple raised the price and shocked everyone. After touching the historic $25 billion mark, Apple became aggressive. A perfect blend of effective strategies and perfect pricing is their secret weapon.
