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Australian developers making applications for Apple's iOS product range were caught off-guard by the company's sudden pricing changes which have cut prices for apps under $5 to match American pricing.

Apple makes sudden price changes to App Store (Credit: thegrid.ch/Flickr)

Apple makes sudden price changes to App Store (Credit: thegrid.ch/Flickr)

While the pricing changes are good news for consumers with apps under $5 now priced the same as their American counterparts, for developers the news isn't so good, with the sudden pricing changes leaving many scratching their heads over how to best price their apps for Australian customers.

Shifty Jelly, the company behind popular Australian Pocket Weather AU weather applications for the iPhone, iPad and iPod Touch, say the price drop is 'concerning' with GST eating into their margin.

'As a developer who makes most of our money selling Australian applications, it [the price drop] is a little bit concerning, because we still have to pay a 10% GST back to the government. So if our app sells for $1.99 and 18 cents is GST that means that prices here are actually lower compared to the US,' a representative from the company said.

'Since we live in Australia, and can't really take advantage of our high currency, that means we lose out overall. Still I'd emphasise that for consumers this is very good news.'

Meanwhile Savage Interactive, the team behind popular painting application Procreate say the changes won't have 'much' of an impact on their app's sales, and say it's a win for Australian customers.

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