Apple has announced to developers that it is switching up its pricing strategy in eight countries over the next few weeks. Today, Apple sells apps in many regions with the prices shown as US Dollars irrespective of the local domestic currency. Later this month, the following App Store countries will now price apps in their local native currency; Egypt (Egyptian Pound), Kazakhstan (Kazakhstani Tenge), Malaysia (Malaysian Ringgit), Nigeria (Nigerian Naira), Pakistan (Pakistani Rupee), Philippines (Philippine Peso), Qatar (Qatari Riyal), Tanzania (Tanzanian Shilling) and Vietnam (Vietnamese Dong).
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Customers feel more comfortable purchasing goods in the currency that they recognize and understand so the transition should induce more App Store revenue in these markets, which is generally beneficial to third-party developers and Apple.
Developers will now be paid in the respective local currency for sales in those markets which introduces some price variation from the exchange rates at any particular time.
Apple also warned developers that Egyptian revenue will be impacted by the introduction of a new VAT regime, so proceeds from Egyptian App Store sales will be subject to a 13% VAT tax rate.