App Store Price Increases in Canada Go Live, Now Start at $1.19

Apple’s planned price increases for Canada have gone live in the App Store. Apps previously priced at $0.99 have increased 20 cents to $1.19, and apps formerly $1.99 are now $2.29, an increase of 30 cents.

An example below is Ellen’s ‘Heads Up!’ app, previously $0.99 earlier in the day, but now 20% more than before:

Screenshot 2015 01 08 19 56 51

The reason for the price increase was due to Canada’s falling loonie, which is now worth about $0.85 USD. The price increases across the board mean your discounted iTunes Gift cards you previously purchased don’t really mean much anymore.

But of course, if an app does make your life better, it might be worth supporting a worthy developer (come on, we all spend $5 on a latte and don’t complain, but will get irked over spending $0.99 on an app).

Earlier today, Apple announced its App Store had generated close to $500 million in revenue in the first week of January alone, a new record for the company.

What do you think of these price increases?

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • talkiewalkie

    As much as I dislike this move, Apple didn’t really have much choice. The Canadian dollar has been in free fall, luckily I don’t really buy too many apps anyway. Call me old fashion, but I much rather play games on my 27″ iMac than a 4″ screen. 😀

  • talkiewalkie

    Update: just noticed some of the price changes on the mac app store. Ya, that sucks. Final cut pro x as an example has gone from $299 to $349.
    But again, maybe I am in the minority, most of my gaming, productivity and editing apps aren’t from the mac app store. my examples: CS6, parallels, office 2011, sync2folder, vlc, handbrake and lots of gog games. 🙂

  • Al

    What Apple has conveniently chosen to ignore is that it prices things, not on margins, but on what the market will bear. Yes, $1.29 isn’t a huge deal for the cheaper apps, but overall the increase WILL make a difference in their sales volume.

    Developers will likely be pissed because they would rather have 100 sales at a reduced profit than 20 sales at a slightly increased profit.

  • matt

    I love the irony in this, too….the price effects come into place RIGHT as apple announces how much theyve done for devs in terms of job creation and revenue

  • Luckily this hasn’t been implemented on the music store. I hope they’re not planning a similar price hike for music as well. That’s where I spend most of my iTunes gift cards.

  • Kheldan

    My issue here is like always when the loonies goes back up, prices will remain at 1.20… And not go back down…

  • Jason C

    Right. It’s like gas prices, now that it’s cheaper people think it’s cheap, not that it was just overly expensive before.
    If people get used to a price they will pay it, and it’s unlikely the prices will drop again.
    Just like how buying an iPhone in Canada has always been more expensive regardless of the dollar.

  • Jason C

    I don’t mind paying more, as we’ve just gotten used to paying next to nothing on apps that are worth far more than their selling price. It’s stupid how people will spend so much money on coffee and complain about apps. I just wish the price hike meant more money went to the developers.

  • mackman6151

    Lol falling price of the loonie means that Canadians are poorer. What better way to stimulate the economy and bump sales than to charge more to a poorer customer base 😉

  • Sman

    It seems to make sense that app costs more when the Canadian $ is lower. However, I don’t remember there was any price reduction when the Canadian $ was moving higher a few years ago.

  • Ryan Peterson

    Free fall??? We’re talking CDN Dollar here, not the Russian Ruble. The CDN dollar fluctuates all the time around the USD and is sometimes par or more… Its an age old excuse to gouge the CDN customer. Been done with magazines and books as long as I can remember. Surprised its taken this long… And now, when the CDN dollar goes back to par they don’t reduce the price…

  • talkiewalkie

    Same, but I suspect they won’t touch the prices on music. The demand is actually in decline as more people head over to streaming services, I doubt they would want to give another reason to make the fall in sales even steeper.

  • BS Detector

    Companies like Apple aren’t in the business to lose money or placate those who don’t understand how the world works. Unfortunate yes, but totally makes sense.

  • mackman6151

    Not really. Charging more generally doesn’t srimulate sales, especially not to a customer base whose currency has plummeted (making them poorer). This will lead to lower sales. So they may even out the currency issue per transaction, but it would be counter productive to your main point about “companies like Apple aren’t in the business to lose money”.

  • Ronin

    In other news, jailbreaking and app piracy has increased.

  • For a 20¢ price increase? I wouldn’t jailbreak my phone for that.

  • Anon

    When the Canadian dollar increases in the future to equal US value, are they going to reduce the app prices? NOPE. lol

  • I think it does mean that a little more money goes to the developers. I’m pretty sure Apple’s cut is a percentage of the total price, so a higher overall price should mean more money for the developers.

  • Ronin

    The .99 / 1.99 apps weren’t the only apps affected. The more costlier apps in the 10-50+ have increased as well. For ex.TomTom North America has shot from $42 to $49 overnight. 20% iTunes cards have have pretty much lost it’s value.

  • hub2

    If you look at the historical charts, CAD was above USD for only about 12-14 months since the app store launched in 2008 in Canada. There was a half-year starting in late 2008 where we eventually dipped below $0.80 USD before starting to recover, but app prices weren’t adjusted then. Our current below-parity dollar has been constantly sliding for 2 years now with no recovery in sight.

    Ignoring the added taxes, we’ve actually been pretty lucky til now that app prices remained at parity with the USD.

    The real kick in the teeth will be when they adjust hardware prices, and this September’s iPhone 6(next) will start at $650 USD but $800 CAD for unlocked…

  • hub2

    When/if CAD starts coming back up to par, then we’ll see. CAD’s actually been below par for most of the app store’s existence, but we still enjoyed app price parity (except taxes) until now.

  • Yeah, you’re right, there’s a 10-20% hike overall on most apps. But saying that 20% off iTunes cards deals have lost their value makes no sense.

    Are you saying you’re going to stop buying those cards and pay 30–40% more than you were with the cards? No, you’re still getting 20% off of their value, it just doesn’t buy as many apps as it used to. Neither does your credit card. Still buys as many songs and rents as many movies though. The price hike has nothing to do with gift card values.

    Either way, for the small amount of apps I buy, there’s no way I’d jailbreak my phone just to save maybe a dollar or two per month.

  • Ronin

    Right, but I meant the GC’s aren’t as effective as it was BEFORE the markup. You may not take much of a hit, but for those like me about to purchase TomTom, Navigon, Notability, and a bunch of other high priced apps, only to find out that have increased $10 each over night. LMAO.. F^&ck that!

  • Ronin

    Also, when the value of the dollar increases, don’t expect them to reduce the value of apps back to what it was. They won’t.

  • Steve

    Hopefully people will speak with their wallets, and refuse to buy apps for the next month or so. A huge reduction in app sales should force Apple to reverse the price increase 😉

  • John

    ^ This! I highly recommend everyone NOT buy anything from the App store for the next month or so, or until they reverse the prices back to normal. It’s complete BS! We are already getting F’cked over by the big 3 telco’s, and now this.

  • Ronin

    It’s only a matter of time before they increase music and movies as well. But I guess we have no choice but to bend over and take it up the…

  • Well, movie rentals and some album prices are already slightly more than they are in the US. Music and movie sales typically aren’t as cheap as they are in the US store. Hopefully this just continues to remain the case and we don’t get an overall song price hike.

    Really though, I don’t know if it’s Apple screwing us over as much as everyone is making it out to be. We’re sort of lucky for having had the cheapest music and app prices in the world for as long as we did.

  • Jason C

    But if the Canadian dollar is weaker, I think the increase is just so they dont lose money on the exchange rate. So the devs are likely getting the same amount. But at least they’re not getting less because of our crappy dollar.

  • Jason C

    I don’t know if it’s correct to say apple charges based on what the market will bear, since $.99 apps and games are ridiculously low for software.

  • Jason C

    So true. I believe this is the first price increase in the App Store since its begining 7 years ago.

  • Jason C

    The problem is that we’ve been used to paying ridiculously low prices for so long we think they’re normal, whereas their true value is much higher.

  • Jason C

    Blame the Canadian dollar and the fall of oil prices and direct your outrage where it belongs.

  • Jason C

    It depends on how much you value these things and if it’s still worth the money to you. If you’re going to be using the TomTom navigation app while driving every day for years all the while getting free updates, you’re not going to notice the extra $10 after a month.

  • Jason C

    At least we’re not living in Russia.

  • Al

    Do you think Angry birds would have sold at the same volume if it was $60? Or even $30?
    No.
    Why?
    The market wouldn’t bear it.

  • Al

    I must have close to 200 apps. Many I got for free or at a really low sale price. Do you think I would have that many if the prices were more in line with desktop software? Realistically, I’d probably have about 10 if I had to pay “normal” prices for the software. And even that may be pushing it.

    Do the math. High volume at low prices is better than very small volume at high prices.

  • Al

    How do you lose money on the exchange rate when something has a one-time fixed cost, as opposed to a per-item cost? At that point, a sale is just a sale as, once the development cost is covered, the rest, as they say, is gravy… regardless of whether it trickles in or poors in.

  • Jason C

    Of course the market wouldn’t bear a $30 game!! I was thinking $5, not even close to your ridiculous example.

  • Al

    Who are you to dictate that $5 is more reasonable? You were stating that app store prices were ridiculously low compared to regular software prices… SOOOOO… lets get real then.

    Case and point…
    Plants Vs. Zombies in the app store… $1 … in the XBOX store… $30.
    Microsoft OneNote in the app store… Free … anywhere else… $70

    People won’t pay real software prices in the app store.

  • Jason C

    You’re comparing console and desktop games and software to mobile as if the platforms are equal, which they are not, with different experiences thus different price expectations.

  • Steve

    “I don’t mind paying more” – Said nobody ever.

  • Jason C

    Correction. I just said that.

  • John

    My ‘outrage’ is exactly where it belongs. The falling Canadian dollar is merely a scapegoat. Our dollar has fallen and risen many times before without any adverse effect. Have you ever heard of any Devs complaining about it? This is just a way for Apple to grab more out of your pocket, and you’d be naive to think otherwise.

  • Jason C

    If it were merely apple greed, wouldn’t they be increasing their prices everywhere, even in the US?

  • Lawrence

    What I wonder is will these prices come down when the loonie goes back up as it surely will at some point.

  • Ronin

    20% on the low-end $.99 app is tolerable. But 20% on a $40, 50, 60+ app? Hell no!

  • Lawrence

    Not true! I tried to buy an app for $9.99 last night and was prompted that I couldn’t because, “this app is being administered” or something like that. Had a look today and that app is now 20% more at $11.99.

  • Ronin

    If it were only that one app, it wouldn’t be that much of a deal. But if you have to purchase multiple apps in 40/50/60-100+ range all at 20% than what it was yesterday, well, you get the picture. Also, some of these apps aren’t on going forever, and have to be re-purchased after a major version release.

    Another problem is that there wasn’t enough warning. They could of pushed out a notification, a week or so before in the App Store. I didn’t find out, until today, after reading this post (as I’m pretty sure goes for most people).

  • Ronin

    It depends on the time of day your tried to purchase it. If later on in day, yesterday, depending on your time-zone, you’d be SOL.

  • Anon

    I wouldn’t count on it. If anything, I’m pretty sure they’ll find an excuse to increase it again, when the loonie goes down (again).

  • Jason C

    If the dollar is worth less you won’t be making as much money. If you develop a new app it’ll take longer to regain your cost.

  • Al

    One word… VOLUME

  • Al

    No… I’m addressing someone else’s comments who was comparing against other platform software.

  • Jason C

    If you’re losing money, you’re not going to make it up no matter how much volume you have. That just means you’re losing more.

  • Jason C

    Yeah there wasn’t any warning at all that sucked. Guess we’ll be waiting for apps to go on sale more.

  • I’m not talking desktop software prices. I’m just saying that at 99¢, factoring in the exchange rate, Canadian apps were priced cheaper than they are in the US and pretty much every other country that has an iTunes Store.

    Also, the ones you got for free are still free. There’s also no reason to believe apps will no longer go on sale, it’ll just be a really cheap $1.19 deal instead of 99¢.

    But for the sake of your desktop-prices-are-not-as-profitable argument, I’ll do the math. You say most of your apps were free, or at a really low sale price. I’m guessing if over half were free and the rest were mostly 99¢, you’ve spent maybe $100 or $200? I feel $200 would be stretching it, but we’ll go with that. If you say you would have only bought 10 apps at “normal” software prices, which you previously stated would be $30 to $60, that means you would have spent $300 to $600. So that would indicate that in your case, app developers would have made a lot more money off you on a low volume, high prices model.

  • Mac Mekawi

    Did books prices go up as well??

  • Al

    Yes, but only a select # of premium developers.

  • Al

    You’re changing the subject. We’re talking software here, not hardware. Once you recoup your cost on a piece of software, everything else is pure profit, no matter what you get for it. The same cannot be said for hardware as it will ALWAYS have an expense attached to it. Therefore, with software, “volume” is your friend.

  • johnnygoodface

    You’re absolutly right mach!

  • Riddlemethis

    you must be a developer to say something ridiculous and bias like that.

  • Damian

    If the canadian dollar somehow surpassed the usd you can guess instead of lowering prices in Canada, they would just increase them in America.