Apple is rising the prices for apps and in-app purchases in a few countries following changes to exchange rates and taxation policy, with customers in India, Turkey and the United Kingdom to see price increases.
In the United Kingdom, one of Apple’s largest markets, app prices are rising up more than 25% following the weak pound exchange rate after the Brexit vote. An app sold for $0.99 in the US will now cost £0.99 in the UK, up from £0.79.
That is an increase of about 25% and similar rises will be seen at every price tier when the changes hit the App Store in the coming days. A Tier 2 priced app now costs £1.99 in the UK up from £1.49. An In-App Purchase that previously cost £7.99 will now be priced at £9.99, like the ‘All Worlds’ upgrade for Super Mario Run.
Increases of about 25% are reflected all the way across the pricing matrix for the United Kingdom App Store.
The weakened pound sterling exchange rate combined with UK’s 20% VAT rate means that app prices have now reached parity with the United States numbers; a $9.99 app now costs £9.99, for example. The cheapest app or in-app purchase in the UK will now be £0.49 … if developers opt to use the alternative price tiers.
Apple is notifying developers today with specific reference to the iOS and Mac App Store but it is likely that the same increases will also hit the iTunes Store for TV shows, movies and books. In addition to the United Kingdom, prices are rising in Turkey and India.
Apple says that the new higher prices will roll out to the App Store over the next seven days. Developers can find out more information about how the price changes affect their revenues in the official documentation.