“Apple Inc. changed the prices of software applications from Canada to Europe today, in one of the company’s more comprehensive global responses to currency swings in recent years,” Tim Higgins, Ari Altstedter and Daniele Lepido report for Bloomberg.
“With the U.S. dollar rising, Apple earlier this week told software makers selling programs through its online App Store that it’s increasing app prices in the European Union, Norway, Canada and Russia because of foreign exchange rates and taxes,” Higgins, Altstedter and Lepido report. “The changes took effect today, with the entry-level price for apps in Canada rising to $1.19 from 99 cents. In Europe, the basic app price jumped to 0.99 euro from 0.89 euro.”
“While Apple has previously raised the prices of programs in its international app stores, the company is typically reluctant to make such changes, said Slaven Radic, chief executive officer of app-developer consultancy Tapstream Network Inc. ‘This is very unique,’ Radic said. ‘They’re very measured about this — sometimes they’ll lose money if they can avoid showing too much price movement on things,'” Higgins, Altstedter and Lepido report. “By rolling out the pricing changes, Apple is signaling it believes the U.S. dollar is poised to remain strong this year. ‘They’re clearly reading the tea leaves, in terms of oil prices and the relative strength of the U.S. economy and weakness elsewhere, and saying the strength of the dollar is not just a transitional event,’ Andrew Bartels, an analyst at Forrester Research Inc., said in an interview. ‘Without making these changes, Apple would be looking at a very significant impact on its revenue.'”
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