“Apple will raise prices for apps sold through its UK app store by a quarter in the latest sign of the higher costs faced by British consumers owing to the weakness in the pound,” Madhumita Murgia reports for The Financial Times.
“Apple will increase prices of the cheapest apps from 79p to 99p — comparable to US app store pricing of 99 cents — but the impact on more expensive gaming apps will be even more marked,” Murgia reports. “For example, the paid version of the popular Super Mario Run will cost £9.99, up from £7.99.”
“‘Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates, business practices, taxes and the cost of doing business,’ said an Apple spokesperson. ‘These factors vary from region to region and over time,'” Murgia reports. “‘There have been some significant currency fluctuations in reaction to the Brexit vote. Apple was obliged to move the prices in order to protect its global business,’ said Ben Wood, analyst at CCS Insight.
Read more in the full article here.
MacDailyNews Take: SOP.
Apple’s email to App Store customers:
Dear [Customer First Name],
When foreign exchange rates or taxation changes, we sometimes need to update prices on the App Store. Prices for apps and in-app purchases (excluding subscriptions) will increase in India, Turkey, and the United Kingdom.
Tax laws have changed for customers purchasing apps and in-apps in the following countries:
• India. Effective December 1, 2016, a service tax rate of 14% along with additional levies of 0.5% for Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC) have been introduced.
• Romania. Effective January 1, 2017, value added tax (VAT) rate changed from 20% to 19%.
• Russia. Effective January 1, 2017, a value added tax (VAT) rate of 18% has been introduced.
We will administer the collection of taxes from customers and the remittance of taxes to the appropriate tax authority in India and Russia. We already collect and remit taxes for Romania. Your proceeds will be adjusted accordingly, and will be calculated based on the tax exclusive price.
Subscription prices in India, Romania, Russia, Turkey, and the United Kingdom will not be affected. You can change the price of your subscription at any time in iTunes Connect with the option to preserve prices for existing subscribers. For details on price preservation, see Offering Subscriptions.
All changes will be made within the next 7 days, and the Rights and Pricing section of My Apps will be updated. You can also download the updated price tier charts.
If you have any questions, contact us.
The App Store Team
Britain has world’s strongest economy after Brexit – January 6, 2017
Apple raises the minimum price of apps in Europe and Canada, change Russian fees – January 9, 2015