Apple Hikes U.K. App Store Prices by 25 Percent Due to Weak Pound

Apple announced changes to its App Store pricing policy today in India, Turkey, and the U.K., citing fluctuating foreign exchange rates and taxation changes as reasons behind the move.

In the United Kingdom, Apple is rising the prices for apps and in-app purchases by over 25 percent, in light of the weak pound exchange rate, which has been down against the dollar by about 19 percent since the Brexit vote.

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, up from £1.49, with similar equivalent hikes for higher tiers and in-app purchases.

In India, a service tax of 14 percent as well as levies of 0.5 percent were introduced by the government from December 1, 2016. In Romania, the tax rate has increased from 19 to 20 percent. Apple will submit the collected revenue to authorities on developers’ behalf.

Apple’s notification to developers today covered the iOS and Mac App Store, but 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.

The App Store price increases are set to go live in the next seven days.

Tag: App Store
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