Purchasing Power Parity (PPP) is an economic theory that adjusts prices based on the relative cost of living and purchasing power in different countries. Instead of using simple currency conversion, PPP ensures that your app remains affordable and competitively priced in each market. For example, a $9.99 subscription in the US might be priced at $3.99 in India using PPP, making it accessible to users while maximizing your global revenue potential. This prevents 'western' premium pricing from being too expensive in developing markets.
What is purchasing power parity?
Written by Stefan Milovanovic
Updated over 6 months ago