RIM Adjusts Pricing Tiers. Lower Prices For GBP And Euro Zone

Yesterday, RIM has announced in a blogpost that they will be introducing new pricing tiers in BlackBerry App World. RIM is rolling the new pricing tiers out in phases, with the first currencies to be affected being the British Pounds (GBP) and Euro.

According to RIM, the reason for the change is that the new tiers better reflect the actual exchange rates. Apple last changed its pricing tiers for this reason on October 25, resulting in a price increase in the Euro zone.

Another reason for RIM to change the tiers is to enable developers to price their apps more competitively. As prices in Euros and GBP are decreasing in BlackBerry App World, it is likely that this is the most important reason for RIM to adjust the tiers. The lowest pricing tier in GBP is now £0.75, down from £1.00. For the Euro zone, the lowest price drops from €0.99 to €0.89. In the Apple App Store, the lowest pricing tiers in these zones are £0.69 and €0.89 respectively. Hence, the change in BlackBerry App World puts the prices more in line with the Apple App Store. The graph below visualizes how the tier change affects the prices (converted to USD).   In Google Play, there are no such things as pricing tiers. Developers can adjust the price and currency of their apps freely in every country.

Pricing apps at the lowest tier is popular practice in the Apple App Store for iPhone. In December, 53% of the paid apps in the US was priced in the lowest tier of $0.99. BlackBerry App World has always been a relatively expensive store. In December, 37% of all available paid apps in this store were priced in the lowest tier. The average price of all available paid apps was 9% higher than in the Apple App Store for iPhone during Q4 2012 in the US.

Hendrik Koekkoek