Today, Apple announced changes to its App Store pricing policy in India, Turkey, and the U.K., giving the reason of fluctuating foreign exchange rates and taxation changes as the basis behind the move.
In the United Kingdom, Apple is raising the prices for apps and in-app purchases by at least 25 percent, in light of the weak pound exchange rate, which, since the Brexit vote, has been down against the dollar by about 19 percent.
Apps on sale for $0.99 cents will now cost an equivalent £0.99, rather than £0.79. Apps at price Tier 2 will cost £1.99, having risen from £1.49, with similar equivalent hikes for higher tiers and in-app purchases. Subscription prices will not be affected.
Starting from December 1, 2016 onwards, a service tax of 14 percent as well as levies of 0.5 percent were introduced in India by the government, whereas in Romania, the tax rate has gone up from 19 to 20 percent. In Russia, a value added tax (VAT) rate of 18 percent has been brought in. Apple will submit the collected revenue to authorities on developers’ behalf.
Apple’s email notification sent out to developers today covered the iOS and Mac App Store. However, price increases are likely to come into effect across iTunes purchases like TV shows and movies. In October, Apple hiked Sterling prices across its Mac lineup for similar reasons. For example, while last year a 13-inch MacBook Pro started at £999, now Apple is still continuing to sell the older 13-inch MacBook Pro, except with a significantly hiked cost of £1,249 – a £250 increase compared a mere two days prior to the announcement.
The App Store price increases are set to go live in the next seven days. The announcement comes on the same day U.K. inflation surged to 1.6 percent, an increase that has been attributed to rises in air fares and the price of food, as well as prices for motor fuels.
