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July 4, 2011

Australian iPhone users angry over Apple charging more

APPLE is charging up to a third more for online apps in Australia than in the US, despite a surging Aussie dollar.

An Apple pricing matrix list obtained by the Sunday Herald Sun shows apps that sell for US99c in the US sell for $1.19 in Australia, despite the downloaded product being exactly the same.
By the current exchange rate, the US price of the app equates to 94c.
Apps that cost $US5.99 in the US cost $8.99 here, when the exchange rate puts the American cost of the apps at $5.69.
Internet forums are awash with angry app users and developers wondering why app favourites such as Angry Birds were dearer for Australians.
Many are furious that new video-editing software Final Cut Pro X will be sold online by Apple in the US for the equivalent of $283.72, but the same product will be sold for download in Australia for $349.99.
One app maker told how they set the price of a new app at $US2.99 on the Appstore, only to find it was selling for $3.99 in Australia.
"I understand that the App store default currency is USD, but a 33 per cent mark-up by Apple is going to make a negative impact on Australian sales," they wrote.
"Why is Apple penalising the Australian market?"
An Apple spokeswoman said the exchange rate was not the only thing that influenced the price of apps in different countries.
"Other factors influencing pricing include ... local import laws, business practices, taxes and the cost of doing business," the spokeswoman said.

"These factors vary from region to region and over time, such that international prices are not always comparable to US

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