Apple to raise App Store prices in Europe and Asia amid currencies’ weakness against US dollar
Apple has announced that it will increase App Store prices in some European and Asian countries. This comes in the wake of rising inflation and certain currencies falling against the US dollar.
How will the App Store prices change?
In a new developer update, Apple said prices for apps and in-app purchases will be increased as early as October 5. The prices of auto-renewable subscriptions for existing users will remain the same.
The list of affected countries includes Chile, Egypt, Japan, Malaysia, South Korea, Pakistan, Vietnam, Poland, Sweden, and all territories using the Euro.
- In all countries of the Eurogroup, except Montenegro, the minimum app price will grow 20%, from €0.99 to €1.19.
- In Japan, the base price will grow to ¥160 (up 30%), as spotted by The Verge.
Why did Apple decide to raise App Store prices?
- The company didn’t disclose the specific reasons for it, only saying that the price hike in Vietnam happened due to “new regulations for Apple to collect and remit applicable taxes.”
- Apple regularly updates App Store prices to adjust for currency fluctuations or tax changes in certain regions. For example, it decreased prices in South Africa, Europe, and the UK in August 2021.
- However, the latest price hikes come amid rising inflation and energy costs across the globe. This led to currencies like the euro and yen falling against the US dollar. According to Reuters, the euro dropped to two-decade lows this year, with the yen hitting a 24-year low.
- That’s why Apple also raised prices for the iPhone 14 and Apple Watch Series 8 in many regions outside the US, including Europe, Japan, and the UK.
- This move is also similar to what Sony recently did by raising the PlayStation price in Europe, Middle East, Latin America, and several other regions. The company cited global economic headwinds as the main factor affecting its business.
