Whether developers actually decide to use that pricing tier will be up to them on a case by case basis. In Australia the lowest cost apps are $1.29.
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Apple says it will affect subscriptions too – it won’t interrupt those who hold a subscription, but will let customers know of the price increase when it comes into affect in around 24 hours.
In a break from tradition, Apple won’t be cancelling auto-renew subscriptions this time round, instead instructing the developers to warn users of the rise in prices. The new pricing scheme for all apps in these countries will take effect in the next three days and will also include in-app purchases and subscriptions.
This is a notable change from Apple considering that when they do increase prices, they used to automatically turn off a customer’s subscription. The cheap, US$0.99 price tier, which was charged at $1.29 here in Australia, will be pushed up to $1.49, with the increase translating across the board as prices get more expensive. In 2011, the value of the Australian dollar rose, and the iPhone-maker decreased App Store prices by 25 percent.
To combat any kind of backlash, Apple are apparently planning to introduce a low-price tier to give app developers the choice of charging just 99c for their products.
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The reason is the continuing downward pressure on the Australian dollar.
