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[Sydney Morning Herald] Apple to raise app prices (In Australia) by up to 30 per cent - Page 5

post #41 of 58
Quote:
Originally Posted by fleetfeather View Post

i do love it when americans come on these threads and explain to australians what their own import and export taxes are without actually having a single shred of evidence to back it up.

it's exactly the same as the "american broadband is slowest in the world" arguments which I seem to tear apart every 2 months.

the fact is, the australian government does not support companies like Apple raising digital product prices due to [insert whatever bs rationale they use this time]. It's the companies themselves who set these prices without respect to what our current taxes are imposing

Thanks thumb.gif

I have family there so I know how it is there.

So I just laugh when people make up stuff and present it as facts.
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post #42 of 58
Quote:
Originally Posted by bencher View Post

Quote:
Originally Posted by fleetfeather View Post

i do love it when americans come on these threads and explain to australians what their own import and export taxes are without actually having a single shred of evidence to back it up.

it's exactly the same as the "american broadband is slowest in the world" arguments which I seem to tear apart every 2 months.

the fact is, the australian government does not support companies like Apple raising digital product prices due to [insert whatever bs rationale they use this time]. It's the companies themselves who set these prices without respect to what our current taxes are imposing

Thanks thumb.gif

I have family there so I know how it is there.

So I just laugh when people make up stuff and present it as facts.

I don't think any one is saying anything about the government causing this. This is pretty much just Apple...though if the Australian dollar is loosing value the government could be blamed in a very round about way.

Though really it is just Apple wanting to get the same about of money as compared to the rest of the world...which is understandable, though prices will still often be region set according to what the local market can support and apparently Apple thinks Australia can pay a bit more for apps.

Though isn't there Australian legislation that puts more tax on software? And games that get the highest rating or something? So even if the government isn't actively supporting it...they might not be helping if I am remembering correctly.
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post #43 of 58
Quote:
Originally Posted by Vagrant Storm View Post

I don't think any one is saying anything about the government causing this. This is pretty much just Apple...though if the Australian dollar is loosing value the government could be blamed in a very round about way.

Though really it is just Apple wanting to get the same about of money as compared to the rest of the world...which is understandable, though prices will still often be region set according to what the local market can support and apparently Apple thinks Australia can pay a bit more for apps.

Though isn't there Australian legislation that puts more tax on software? And games that get the highest rating or something? So even if the government isn't actively supporting it...they might not be helping if I am remembering correctly.

To the part in bold. A counter argument to that is why not raise Canadian prices too?

USD > AUD> CDN.

So that argument isn't valid.
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post #44 of 58
Quote:
Originally Posted by bencher View Post

Quote:
Originally Posted by Vagrant Storm View Post

I don't think any one is saying anything about the government causing this. This is pretty much just Apple...though if the Australian dollar is loosing value the government could be blamed in a very round about way.

Though really it is just Apple wanting to get the same about of money as compared to the rest of the world...which is understandable, though prices will still often be region set according to what the local market can support and apparently Apple thinks Australia can pay a bit more for apps.

Though isn't there Australian legislation that puts more tax on software? And games that get the highest rating or something? So even if the government isn't actively supporting it...they might not be helping if I am remembering correctly.

To the part in bold. A counter argument to that is why not raise Canadian prices too?

USD > AUD> CDN.

So that argument isn't valid.

All sorts of reasons. The most probable likely being that the Canadian customer base wouldn't support it. Meaning Apple believes that if they raise prices less people will buy and make the price hike not profitable. I am sure you could go to some places of the world and find an app being sold for the equivalent of .50 USD, but that is all the local market can afford. So it is either sell for cheap or not sell at all.
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post #45 of 58
Quote:
Originally Posted by Nemesiswho View Post

I think there is a slight problem with this, there would be very minimal data transfers between countries since only one copy of the transferred file is needed. Once one copy is in the target country this file can be replicated within the country avoiding international data transfers.
I understand you are not necessarily saying this is the reason Australians pay more but you are severely overcomplicating the situation and introducing problems that are not necessarily there.
At the end of the day Australian's pay more for content and hardware than the states and it is simply because there is much greater demand in the US and there is a precedent for low prices. Australia's demand for electronic goods is far more inelastic and as such a price increase will result in a net gain in revenue for Apple. This is basic economics and as much as it is a pain to be on the receiving end of it, at the end of the day Apple is a firm and it is run to make a profit.

It depends on the software developers network structure. They may or may not have servers hosted in those regions, if they do not have servers hosting in that region then the transfer happens every time a person from that region wants the files. You then run into situations of if they do have servers hosted in that region, the cost of maintaining those servers in that region.

So, let's use ABCD Company, Inc. as an example. ABCD creates XYZ Software and wants to sell it to the world. ABCD sets up servers in New York, and starts distributing it to the world. Someone in Turkey buys their product, it is sent through the multitude of networks to that user in Turkey. Now what? Well, technically (as per your own example) that software is in Turkey, but when Customer 2 in Turkey wants that software, how do they get it? Well, they have to obtain it from the hosting servers in New York, not from Customer 1 in Turkey who purchased it earlier. So when Customer 2 buys and downloads, that data makes the trip through the various networks again.

The exception to the above is if ABCD Company, Inc. sets up servers in Turkey, then they only have to make the one major file transfer to that server. Once that is done all future customers in that region can pull the files from the servers in Turkey. But wait! You now introduce further costs of business; the cost to have those servers in Turkey for that region....

The notion of "Well, the data made one trip, so it is magically there for everyone else in the future" is completely wrong.

The point I am really stressing here for people to understand is that the Internet isn't free! It costs money to make happen, and a lot of money. You might pay your ISP for internet access, but that is only part of the costs involved to make that happen. At the end of the day it is a very complex beast that requires agreements and partnerships against competitors and even governments.

That is why I always get a bit of a chuckle when I hear people scream "But I paid my Internet bill! I should get the world for free!"

P.S.

Again, I am not saying this is why Apple increased pricing, they already stated why they did that. This is just a bit of an aside to the conversation revolving around the cost discussion in general.
    
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post #46 of 58
Quote:
Originally Posted by PostalTwinkie View Post

It depends on the software developers network structure. They may or may not have servers hosted in those regions, if they do not have servers hosting in that region then the transfer happens every time a person from that region wants the files. You then run into situations of if they do have servers hosted in that region, the cost of maintaining those servers in that region.

So, let's use ABCD Company, Inc. as an example. ABCD creates XYZ Software and wants to sell it to the world. ABCD sets up servers in New York, and starts distributing it to the world. Someone in Turkey buys their product, it is sent through the multitude of networks to that user in Turkey. Now what? Well, technically (as per your own example) that software is in Turkey, but when Customer 2 in Turkey wants that software, how do they get it? Well, they have to obtain it from the hosting servers in New York, not from Customer 1 in Turkey who purchased it earlier. So when Customer 2 buys and downloads, that data makes the trip through the various networks again.

The exception to the above is if ABCD Company, Inc. sets up servers in Turkey, then they only have to make the one major file transfer to that server. Once that is done all future customers in that region can pull the files from the servers in Turkey. But wait! You now introduce further costs of business; the cost to have those servers in Turkey for that region....

The notion of "Well, the data made one trip, so it is magically there for everyone else in the future" is completely wrong.

The point I am really stressing here for people to understand is that the Internet isn't free! It costs money to make happen, and a lot of money. You might pay your ISP for internet access, but that is only part of the costs involved to make that happen. At the end of the day it is a very complex beast that requires agreements and partnerships against competitors and even governments.

That is why I always get a bit of a chuckle when I hear people scream "But I paid my Internet bill! I should get the world for free!"

P.S.

Again, I am not saying this is why Apple increased pricing, they already stated why they did that. This is just a bit of an aside to the conversation revolving around the cost discussion in general.

Why do you keep repeating the same thing? LOL

Everyone knows downloads travel from the source to the destination.

How is this relevant to anything here? I don't know.

If this was even the slightest case or hold any validity I wouldn't be able to Play on servers on Russsia or anywhere in the world I choose of I decide to put up with higher pings.

I pay a higher price of pings.

Netflix users would also see price hikes. Thought it might happen in the USA where the source is.

I still don't know why this is even brought up.

The "world wide web" is linked by nature through various networks naturally. I browse Australian sites from where I am and get data from anywhere from where I am.
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post #47 of 58
Quote:
Originally Posted by bencher View Post

Why do you keep repeating the same thing? LOL

Everyone knows downloads travel from the source to the destination.

How is this relevant to anything here? I don't know.

If this was even the slightest case or hold any validity I wouldn't be able to Play on servers on Russsia or anywhere in the world I choose of I decide to put up with higher pings.

I pay a higher price of pings.

Netflix users would also see price hikes. Thought it might happen in the USA where the source is.

I still don't know why this is even brought up.

The "world wide web" is linked by nature through various networks naturally. I browse Australian sites from where I am and get data from anywhere from where I am.

I know you like to hate on Apple, and seem to have a thing for me; you seem to follow me around and love to make inane comments about my comments. However, that doesn't mean you need to act so daft, and ask questions like "Why did you say this?", when my statement contains a bloody quote that I even highlighted and am replying directly to.

It is as though you try and look, and completely fail, for reasons to try and come at me.

If you are so blind as to not see what my post was directed at, the giant highlighted quote directly above it, then you should stop using the Internet my friend.

P.S.

The "Cool kids hate on Apple" bus left awhile ago by the way, you might want to find a ride.
    
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post #48 of 58
$0.99 -> $1.29 (30%)
$1.99 -> $2.49 (25%)
$2.99 -> $3.79 (26%)
$4.49 -> $4.99 (11%)

Australian Dollar. Over the past year it has gone down 11%. Over past 2 years its down 10.5% Over the past 5 years its UP 28%. If they charge 11-15% more, its understandable. The currency is down, so it should be more, but hopefully when its high, it gets cheaper. But since they are charging a lot more, I think that's unfair.

They know that if they charge more, people will buy less. At the same time, they also know that some people dont care if its $1 or $2. So, they are trying to find a place in the middle where they can optimize their profit. So, while all they needed to do was increase the price by 10%, they know their sales will drop by X%, so they bump it a bit more to account for that. Once they get there, then they will pick the closest friendly number around that value.

I personally would prefer if it was just set to USD price. When you click purchase, it will then say it comes out to 1.18 AUD, for which people would understand.

I think apple is dumb to make this change when they are not the dominate OS anymore. Paying for apps lock people into your system. The less you sell, the easier it is for people to transition.
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post #49 of 58
Thread Starter 
Quote:
Originally Posted by fleetfeather View Post

i do love it when americans come on these threads and explain to australians what their own import and export taxes are without actually having a single shred of evidence to back it up.

it's exactly the same as the "american broadband is slowest in the world" arguments which I seem to tear apart every 2 months.

the fact is, the australian government does not support companies like Apple raising digital product prices due to [insert whatever bs rationale they use this time]. It's the companies themselves who set these prices without respect to what our current taxes are imposing

Bingo,

Like I've said before half my family lives in Australia and NZ


Your internet situation is a nightmare and despite what @chinesekiwi says NZ is no better. They must think Americans don't get out much. The last time I was over there I was sickened by how much prices were for digital goods and how HORRID the internet connections were to just about everything. I refused to even use the internet the last 3 days in NZ and last week in Australia because it was just THAT TERRIBLE. Even simple VOIP was horrid. I tell you the companies do it to you guys because your market share of the world market is so low versus the area of land you guys occupy.

I've got a buddy up in broome (which is in the North part of Western Australia fyi) who has the equivalent of a dialup connection in a city of about 25000 people. Good luck getting cell service there!


Flee some of us Americans do know and this is partially why I am so infuriated. Like I said earlier. Why don't they do it to Russia, or Mexico with the same excuse of currency fluctuation? They know why. I love Australia but I would never live there! New Zealand too. I love it but until they get into the 21st century with net and global pricing. HECK NO.
Quote:
Originally Posted by Mrzev View Post

$0.99 -> $1.29 (30%)
$1.99 -> $2.49 (25%)
$2.99 -> $3.79 (26%)
$4.49 -> $4.99 (11%)

Australian Dollar. Over the past year it has gone down 11%. Over past 2 years its down 10.5% Over the past 5 years its UP 28%. If they charge 11-15% more, its understandable. The currency is down, so it should be more, but hopefully when its high, it gets cheaper. But since they are charging a lot more, I think that's unfair.

They know that if they charge more, people will buy less. At the same time, they also know that some people dont care if its $1 or $2. So, they are trying to find a place in the middle where they can optimize their profit. So, while all they needed to do was increase the price by 10%, they know their sales will drop by X%, so they bump it a bit more to account for that. Once they get there, then they will pick the closest friendly number around that value.

I personally would prefer if it was just set to USD price. When you click purchase, it will then say it comes out to 1.18 AUD, for which people would understand.

I think apple is dumb to make this change when they are not the dominate OS anymore. Paying for apps lock people into your system. The less you sell, the easier it is for people to transition.

I am glad someone besides me gets it. All they have to do with these app stores is start charging USD equivalency. It's a simple calculation and other services do it ALL the time. The reason these guys are using it as an EXCUSE to raise prices is because they can make more money screwing the consumer this way.

Like I said earlier. When they "lowered" the price two years ago they didn't even lower it by as much as the currency fluctuation. It was by about 60% of the decrease(A little less I think when I did the math it was 58something) So either they have really stupid people in the finance department or they are lying. I know plenty of people in finance. Most of them are evil, none of them are stupid. I would bet money they knew exactly what they were doing then and exactly what they are doing now. It's disgusting.
Edited by Darkpriest667 - 4/4/14 at 11:09am
 
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post #50 of 58
Quote:
Originally Posted by Darkpriest667 View Post

Bingo,

Like I've said before half my family lives in Australia and NZ


Your internet situation is a nightmare and despite what @chinesekiwi says NZ is no better. They must think Americans don't get out much. The last time I was over there I was sickened by how much prices were for digital goods and how HORRID the internet connections were to just about everything. I refused to even use the internet the last 3 days in NZ and last week in Australia because it was just THAT TERRIBLE. Even simple VOIP was horrid. I tell you the companies do it to you guys because your market share of the world market is so low versus the area of land you guys occupy.

I've got a buddy up in broome (which is in the North part of Western Australia fyi) who has the equivalent of a dialup connection in a city of about 25000 people. Good luck getting cell service there!


Flee some of us Americans do know and this is partially why I am so infuriated. Like I said earlier. Why don't they do it to Russia, or Mexico with the same excuse of currency fluctuation? They know why. I love Australia but I would never live there! New Zealand too. I love it but until they get into the 21st century with net and global pricing. HECK NO.
I am glad someone besides me gets it. All they have to do with these app stores is start charging USD equivalency. It's a simple calculation and other services do it ALL the time. The reason these guys are using it as an EXCUSE to raise prices is because they can make more money screwing the consumer this way.

Like I said earlier. When they "lowered" the price two years ago they didn't even lower it by as much as the currency fluctuation. It was by about 60% of the decrease(A little less I think when I did the math it was 58something) So either they have really stupid people in the finance department or they are lying. I know plenty of people in finance. Most of them are evil, none of them are stupid. I would bet money they knew exactly what they were doing then and exactly what they are doing now. It's disgusting.

Great post typer.gif
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Overclock.net › Forums › Industry News › Technology and Science News › [Sydney Morning Herald] Apple to raise app prices (In Australia) by up to 30 per cent