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All You Need to Know About App Store Pricing

All You Need to Know About App Store Pricing

App Store is the platform that allows you to showcase your app to millions of users.

How much would it cost you to publish an app on Apple’s App Store? Does Apple charge anything to publish the iOS applications? You will get a complete understanding of that in this blog post.

If iOS app developers try to publish an app on the App Store, they will always be charged at certain price points i.e. $0.99, $1.99, $2.99, $3.99, and so on. But, why?

Well, the answer to this question comes on different fronts which you will understand in the upcoming sections.

Roadmap to Publishing an App

“I want to publish my app on App Store”, says George. But, how is George going to do that? Well, it takes a few steps or stages to get your app the exposure it needs. Here is how.

Choose a build

Among multiple builds or stand-alone forms of source code, you can choose one and send it for review.

Set pricing and availability

To proceed with setting up the pricing, you would first need to select the region in which you want your product to be used. All the regions would be selected by default which you can deselect as per your needs. Once regions have been selected, you can choose a price tier and tax category for your application.

Submitting for review

Adding a meta, you can send your app for the review process. The process can be automatic, manual, or multistage.

Keep checking the status

You can check the status of your app’s approval for publishing on the app store. You may need to alter the metadata, avoid any crashes, bugs or errors, broken links, or any other reasons.

Request promo codes

Once your app is approved, you can create and distribute promo codes.

The complete process of uploading mobile apps, iOS or Android, can be lengthier and different for both platforms but most of their steps and procedures are identical.

How Does App Pricing in App Store Work?

Before we move somewhere let us have a quick view of some statistics which represent the number of the applications that have been published on the world’s second most popular app distribution platform.

20100.15 MILLION
20110.28 MILLION
20120.45 MILLION
20130.71 MILLION
20140.95 MILLION
20151.4 MILLION
20161.9 MILLION
20172.3 MILLION
20182.4 MILLION
20193.0 MILLION
20203.4 MILLION

The numbers, here, show that there has been a constant rise in the popularity or userbase of the app distribution platform. Despite its disputed pricing policy, mobile app developers across the world are still contributing with their applications on App Store.

Whenever a developer tries to publish an app, they are asked to choose from 94 tiers (87 price tiers and 7 alternate price tiers) and cannot add custom pricing.

Types of Applications Published on App Store, Commission & Proceeds

Generally, we learn that Apple takes 30% commission and proceeds 70% of the subscription sales. AniOS app development company or developers can keep their apps free to download or paid. But, is that all? Actually, there is a lot more you must know about publishing apps, commission, and pricing.

TYPE OF APPWHAT’S CHARGEABLEAPPLE’S COMMISSIONPROCEEDS TO DEVELOPERAPP EXAMPLES
FREE APPSFREE DOWNLOAD OR APP USAGENO COMMISSIONFREE SERVICEAMAZON ALEXA, WIKIPEDIA
FREE WITH ADVERTISINGFREE DOWNLOAD OR APP USAGENO COMMISSIONNOTHING PROCEEDS, DEVELOPERS EARN FROM ADVERTISINGINSTAGRAM, PINTEREST, TWITTER
FREE WITH PHYSICAL GOODS AND SERVICESFREE DOWNLOADNO COMMISSIONNOTHING PROCEEDS, DEVELOPERS EARN BY SELLING PHYSICAL GOODS AND SERVICESAIRBNB, AMAZON, LYFT
FREE WITH IN-APP PURCHASEFREE DOWNLOAD30% COMMISSION OF SALES THROUGH IN-APP PURCHASE70% OF SALES THROUGH IN-APP PURCHASECANDY CRUSH SAGA, CLASH OF CLANS, TIKTOK, SKYPE
PAIDPAID DOWNLOAD WITH FREE UPDATES30% COMMISSION OF SALES THROUGH IN-APP PURCHASE70% OF SALES THROUGH IN-APP PURCHASEDARK SKY WEATHER, FACETUNE
FREE WITH SUBSCRIPTIONFREE DOWNLOAD & AUTO-RENEWING SUBSCRIPTIONS INSIDE THE APP30% FOR THE FIRST YEAR SUBSCRIPTION FEE & THEREAFTER COMMISSION GOES DOWN TO 15%70% FOR THE FIRST-YEAR SUBSCRIPTION FEE. THEREAFTER, 85%.BUMBLE, HULU, CALM
READER APPSFREE DOWNLOADNO COMMISSIONDEVELOPERS RECEIVE COMPLETE REVENUE GENERATED FROM SELLING CONTENT OUTSIDE THE APPNETFLIX, AMAZON KINDLE, SPOTIFY, AUDIBLE
CROSS-PLATFORMSFREE DOWNLOAD, PURCHASES CAN BE MADE OUTSIDE THE APP ON OTHER PLATFORMS AS WELL.30% COMMISSION IF PURCHASES ARE MADE INSIDE THE APP.70% PROCEEDS IF PURCHASES ARE MADE INSIDE THE APPMS WORD, DROPBOX

What are App Store Pricing Tiers?

As mentioned earlier, pricing tiers are certain pricing points always ending with double digits of nine (primary value.99) in US dollars. Applications published on App Store can be accessed by users in 155 countries or regions. An extension of 20 new countries has also been announced.

The concept of pricing tiers begins with the question, how do you want to charge your app users?

Are you going to make it free for all? If yes, publish it for free. Do not worry about charges.

But, if you are going to charge people, you need to pay a share to App Store. The share is 30% of the selected pricing tier.

You may require to add a pricing tier for product purchase if not free and separately for in-app purchases when enabled.

What are the Alternate Pricing Tiers?

We mentioned the term ‘Alternate Pricing’ in the previous section. So, why did Apple introduced seven alternate pricing tiers when they were 87 pricing tiers already. What is their purpose?

Back in June 2013, Apple introduced alternate pricing tiers for emerging or developing regions and countries like India, Indonesia, China, South Africa, Russia, Mexico, Turkey, and a few others.

Alternate pricing tiers allow developers to see their products below the regular price points.

The currency exchange ratio in alternate tiers can be lower than the normal pricing tiers.

App Store Pricing Tiers Table

As mentioned earlier, pricing tiers are certain pricing points always ending with double digits of nine (primary value.99) in US dollars. Applications published on App Store can be accessed by users in 155 countries or regions. An extension of 20 new countries has also been announced.

The concept of pricing tiers begins with the question, how do you want to charge your app users?

Are you going to make it free for all? If yes, publish it for free. Do not worry about charges.

But, if you are going to charge people, you need to pay a share to App Store. The share is 30% of the selected pricing tier.

You may require to add a pricing tier for product purchase if not free and separately for in-app

AK 2021-10-08 13:58:44

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