App Store customers now pay 62 Rubles for a $0.99 app

Dec 19, 2014 10:14 GMT  ·  By

Currency fluctuation isn’t something out of the ordinary, but swings like the ones incurred by Russia this week don’t happen that often. Which is why Apple, like many others, was caught off-guard and had to take drastic measures to adjust its operations in the country.

The first move it made was to immediately take down its store, because the cited prices no longer reflected the actual value of the products in the country’s currency, the Russian ruble. The Apple online store was still down at the time of this writing.

App Store follows suit

The second move Apple made, which is what we’re here to discuss today, was to increase prices in areas where it didn’t have to shutter services. Namely, the iTunes Store.

The company confirms the spike in prices with an email that is currently being dished out to registered developers. Sent by the iTunes Connect team, the memo states, “Dear [developer name], We’ve increased the price for apps and In-App Purchases on the Russian App Store to account for changes in foreign exchange rates.”

The email continues, “We’ve also updated the pricing matrix, which is now available in the app’s Pricing section in My Apps on iTunes Connect. Note that we periodically adjust prices on the App Store due to changes in foreign exchange rates. If you have any questions about the price changes, contact us.”

The pricing matrix likely refers to the standard pricing schemes. For example, in the U.S., Apple will charge a minimum $0.99 for a paid app, but a developer will not be able to charge $1,00 or $1,20, or any other sum between $0.99 and $1.99. The same goes for higher-priced apps. A developer can charge $29,99, but they cannot charge a full $30.00.

Serious business

The situation in Russia appears to be a serious one. Apple shuttered online operations there three days ago, meaning the company hasn’t conducted a single online sale for any of its hardware products for 72 hours.

Considering the timeframe, the hefty product lineup, and of course the high prices associated with these products, Apple has probably lost millions of dollars because of the ruble’s mood swings. Then again, the company might have calculated that this is still less damaging to the bottom line than to keep the store alive with prices that don’t reflect reality.

We’ll write again on this topic, likely when Apple decides to resume online operations in Russia.

Russian App Store (4 Images)

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