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.
Yep, it was only a matter of time before the UK store got its increase. Interestingly, Apple is banking on the pound falling even more: as the article says, the pound is down 19% since the Brexit vote, but Apple’s raising prices by 25%. Part of this could be convenience; Apple is locked into psychological prices (0.99 instead of, say, 0.95), but it’s also a way they can make even more money from UK customers if the pound stabilizes at less than a 25% increase.
Though Tier 2 is seeing an increase of 33%, so Apple really is taking advantage of the situation.
Apple has already increased prices of their products in their online store, to take the exchange rate into account.