What is PPP pricing? Purchasing power parity for app subscriptions

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PPP pricing (purchasing power parity pricing) means charging each country a price scaled to what things cost there, instead of converting one price at the exchange rate. A $4.99 subscription might become about $1.19 in India and $2.29 in Brazil. Exchange rates reflect trade and capital flows, not what a coffee or a phone plan costs. When Apple converts $4.99 into rupees, the result is roughly $4.99 at market rates. But the World Bank estimates that goods and services in India cost about 23% of US prices, so that subscription feels about 4.3× as expensive to someone living there.

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