App Prices Hit A Ridiculous (Fantastic?) Low In Indian Nokia Store

In an incredible turn of events, the prices of apps in the Indian Nokia Store have hit rock bottom. This has happened because Nokia has reduced the levels at which developers can price their applications. Earlier Level 1 was Rs. 25 (about 50 US cents), now it is just Rs. 5. So for example 1 Euro app, which is say the lowest level in Europe, will cost just Rs. 5 in India. In terms of pure conversion Rs. 5 equals just 0.072 Euros.

App prices in India were already lower compared to the pricing in other parts of the world, this is something I’ve covered before, but the new rates really ring in a bonanza for Indian users. Its like having a fire sale all year long.

As you can see fantastic applications like Joikuspot which retail for about 8 Pounds in the UK, can be had for as little as Rs. 35 in India. That’s not even half a pound. However, it is important to realise that pure currency conversions do not work, and that Nokia strives to keep prices in tune with what consumers are willing to pay for apps in India and Rs. 35 is a great price for Joikuspot.

Similarly, quality games like Asphalt 6 and Angry Birds can be had for just Rs. 5 and 10 respectively. While this may sound like ‘are you freaking kidding me? That so awesome!’ for the consumer, the developers may well feel like ‘are you freaking kidding me? That’s bullshit!’.

Our friends at Unleash The Phones suggest that developers might even want to withdraw their apps from India, because of these exceedingly low prices. While I am not sure how the Nokia Store submission works, the impression I get from the post is that developers can only specify a level at which they want to sell their apps and Nokia automatically sets the prices in different countries. E.g. Level 1 could mean 1 USD in the US, .80 Pounds on the UK, .90 Euro in Europe, Rs. 5 in India and so on. A problem will arise if they can only set a level as a price for their app across the world and this cannot be changed based on country. (I’ll try and get some clarity on this aspect soon.)

Nokia India been really working hard to delight its customers over the past few months, first the brilliantly priced unlimited downloads from the Nokia Music Store and now these super cheap apps. As long as there is no developer backlash, its a very welcome sign for consumers. Nokia believes that what it is loosing on margins, it’ll make up in volume – while making its customers super happy.

[via: Unleash The Phones]

3 thoughts on “App Prices Hit A Ridiculous (Fantastic?) Low In Indian Nokia Store”

  1. “Globalization” brings this up. The main problem with economics is that we try to bring up data as “Gross National Product” summed up in dollars, or euros, currencies that may have some meaning worldwide. That indicator should be summed up and measured by actual goods and services.

    The simple currency conversion based on exchange rates usually becomes very distorted. Exchange rates themselves are distorted, so that many countries around the world currently complain with China against their supposedly undervalue imposed on their currency, the Remnibi(?).

    Anyway, the best way to evaluate costs is through the approach of the possibility to buy things or services in that country. This is why the “Bic Mac Index” is so famous and successful.

    In India, I find it quite reasonable to assume that the value of Rs. 5,00 might be able to buy the same or more in equivalent goods and services than US$ 1,00 in the US. How untrue is this thought?

  2. Well, depends on what you’re buying and from where. A cup of coffee at a cafe is upwards of 1$ in India, but at the same time you can find a cup of tea/coffee for Rs. 5 at a local vendor.

    The cheapest burger at McD in India is about .70-.80 US cents.

    Plus there is a lot of disparity in what people in big cities will be willing to pay for apps versus those in small towns and a lot of Nokia’s customers come from small cities, and at Rs. 10 even they would be tempted to download apps. That’s what ringtones etc sell/sold for.

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