Mac App Store: Get More Expensive Mac OS X Apps for Your Mac, Too!

I wrote about some drawbacks of the Mac App Store a while ago... when it comes to quality software titles for the Mac, I have to admit it's not all bad.

There are some familiar examples of Macintosh applications on the Mac App Store, mostly from seasoned Macintosh developers, including Apple themselves. But I have noticed a trend amongst such knowledgable developers that may deter or fool potential customers, and I think it directly relates to how Apple charges developers for every sale on the Mac App Store.

I have noticed that some developers prefer to continue to sell their software solutions outside the Mac App Store, for whatever reasons. However, there are some developers who sell their software in both ways, and I have noticed the prices of the (almost) same software sold with both delivery mechanisms: software sold on the Mac App Store are more expensive than the same titles sold outside the Store.

A case of interest was OmniFocus: at the time of this writing, it was selling for USD$79.99 at Omni Group direct. On the Mac App Store, the same product sells for more: AUD$99.99, which is not the same at the current exchange rate of AUD$1.00 = USD$0.986 (according to the Unit Converter widget at the 7th of February, 2011); it's a price hike of a smidgen over 18%!

The Omni Group themselves acknowledge this discrepancy in pricing between their own store and the Mac App Store:

"If I'm purchasing from the Australian Mac App Store, why are your prices so much higher than they are through your own website?" On our website, we sell all our products in our local currency—and since we live in Seattle, that currency happens to be US dollars. For the Mac App Store, we don't set prices directly; we choose a price tier which Apple uses to choose a price for each region. We've chosen the price tier which is closest to our own online store pricing (just a few cents different in our local currency), but exchange rates fluctuate and this week you might happen to get a better deal buying directly from us than you do when purchasing locally. Please feel free to take advantage of that if you wish!

Another more interesting case is an app that only appears on the Mac App Store, where it appears to be more expensive than the advertised price on the developer's own Web site! This developer resides in Australia, and yet is able to advertise a product selling for less than at the only place you can get the product. Isn't this false advertising? Meanwhile, the Australian iTunes Terms and Conditions says that all sales are final, and while it has the right to change prices at any time, there is no price protection or refunds in the event of price reduction or promotion. The Terms and Conditions say nothing else about price adjustments or other purchasing rights for consumers, so once you've bought the product, you can't complain to Apple about the sale unless the product you received is faulty, or you didn't receive the product you paid for. All other complaints would need to be referred to the developer of the product. It's a case of buyer beware, because what the developer is doing isn't documented as offensive conduct by the ACCC, but it is deceptive practice nevertheless.

One thing that is not mentioned by lots of different places all over the Web is the country of purchase and the monetary currency used for the pricing of software products for sale. It's only during or after the actual transaction that you learn of what currency the product was priced at! If you don't know what the developers are charging for their software, research the company you are purchasing from first, and if you are still unsure, ask before you buy!

But it may not be the result of developers and publishers intending to undercut Apple, or even be intentionally misleading. It could be Apple themselves causing the price discrepancy, as the iTunes Store shows for almost every title of media sold outside of the United States. In Australia, iTunes Store and App Store purchases can be compared against the same titles available in the United States by switching between countries and comparing prices, and more often than not, prices of products—whether rented or sold—see an approximate 32-39% price hike in Australia compared to prices for the same products in the United States, even after considering the current foreign exchange rates and bank fees of obtaining products delivered to Australia from United States sources. Since the Mac App Store uses the same infrastructure to promote and sell Macintosh software products, the Mac App Store in Australia could also be seeing the same price discrepancies of software sold to Australian customers.

There are various other reasons why buying directly from the software producer makes more sense, but this is another strike against the Mac App Store, and software developers may use this to reward their loyal overseas customers.

Note: the iTunes Store links in this article refer to the Australian iTunes Store, not an iTunes Store of any other country. This is due to the author's Store account operating under the Australian iTunes Store Terms and Conditions, and links obtained in iTunes or the Mac App Store refer to products available in the Australian iTunes Store.

Article last updated 20th February, 2011: added an interesting FAQ entry from Omni Group's own Web site; added a note about a Mac App Store-only app and its descrepancy with the site's own advertised pricing; added notes about Mac App Store terms and conditions with regard to product pricing.

—tonza