Thanks to Brexit and the volatility in the British pound, Apple device users in the U.K. can expect to pay significantly higher prices on the Apple App Store this year. The price increases will impact both the iOS and Mac App Stores, and the iPhone maker is also reportedly planning on raising prices in a few other countries as well.
The news comes the same month as the report that Apple raked in $3 billion in App Store sales in December, shattering all previous monthly records. Clearly the iPhone maker isn’t hurting for revenues in this department.
Developers being notified of the higher Apple App Store prices
9to5 Mac was the first to report on the price increases for the Apple App Store. The company is reportedly informing developers of the changes now. According to the tech blog, Apple’s notifications to developers specifically refence the Mac and iOS App Stores, but it’s expected that iTunes pricing for movies, TV shows and books will also increase.
The iPhone maker told developers that it expects to push out the higher pricing matrix over the next week. It also sent developers official documents with a full explanation of the changes in prices and how those prices will affect their revenues.
U.K. struck by Brexit… again
The weaker exchange rates for the pound and the U.K.’s 20% value-added tax bring app prices in the country on par with those in the U.S.
The exchange rate for the pound has been weak since the country voted to leave the European Union. As a result, iOS and Mac users in the country will now pay 99 pence for an app that costs 99 cents in the U.S. Currently the App Store charges 79 pence for such apps, so this price increase comes in at roughly 25%. The price increases will be about the same for all app tiers, according to 9to5 Mac. For example, a Tier 2 app which was priced at £1.49 will go up to £1.99.
The Apple App Store also intends to boost prices for in-app purchases. For example, an in-app purchase that cost £7.99 previously will be priced at £9.99 after the price increase. In other words, buying the full version of Super Mario Run will now cos £9.99 under the Apple App Store’s new pricing scheme.
Apple App Store prices also being raised in other markets
Price increases in international markets are fairly common as U.S.-based companies deal with fluctuating currency exchange rates. Unsurprisingly, the U.K. isn’t the only country being hit with a price increase on the App Store. Mac and iOS users in India and Turkey will also see prices rise there as well.