Apple App Store Prices Skyrocket 25 Percent In UK Following Brexit Vote
Though Apple is making a killing on mobile app sales, that is not stopping the company from raising prices in several regions overseas. In the United Kingdom, one of Apple's biggest and most lucrative markets, app prices and in-app purchases are jumping up more than 25 percent. So for an app that might have sold for $0.99 in the United States, it will now sell for £0.99 in the U.K. instead of £0.79.
The price hike is a result of a weak pound exchange rate following the Brexit vote. It's not just £0.79 apps that are going up by 25 percent or more, either. Similar price hikes will hit every price tier in the App Store. A Tier 2 app that previously would cost mobile users £1.49 will now cost £19.99. And for an in-app purchase that previously ran £7.99, such as the "All Worlds" upgrade for Super Mario Run, will now cost users £9.99.
A weak exchange rate paired with the U.K.'s 20 percent VAT rate brings app prices in the U.K. to the same level as in the U.S., meaning that a $0.99 app here costs £0.99 abroad. The least expensive in-app purchase in the U.K. is now £0.49.
Apple has begun notifying developers of the updated price structure in the U.K., though for now it is only mentioning content for iOS and the Mac App Store. It is believed that the same price hikes will flood into the iTunes Store as well, which will mean higher prices in the U.K. for movies, books, and music.
The U.K. can expect to see these news prices within the next week. If you're affected by this and have been pondering a purchase, especially one that is a bit more expensive, you may want to pull the trigger now before the price goes up. Same goes for users in Turkey and India where prices are also rising.
The price hike is a result of a weak pound exchange rate following the Brexit vote. It's not just £0.79 apps that are going up by 25 percent or more, either. Similar price hikes will hit every price tier in the App Store. A Tier 2 app that previously would cost mobile users £1.49 will now cost £19.99. And for an in-app purchase that previously ran £7.99, such as the "All Worlds" upgrade for Super Mario Run, will now cost users £9.99.
A weak exchange rate paired with the U.K.'s 20 percent VAT rate brings app prices in the U.K. to the same level as in the U.S., meaning that a $0.99 app here costs £0.99 abroad. The least expensive in-app purchase in the U.K. is now £0.49.
Apple has begun notifying developers of the updated price structure in the U.K., though for now it is only mentioning content for iOS and the Mac App Store. It is believed that the same price hikes will flood into the iTunes Store as well, which will mean higher prices in the U.K. for movies, books, and music.
The U.K. can expect to see these news prices within the next week. If you're affected by this and have been pondering a purchase, especially one that is a bit more expensive, you may want to pull the trigger now before the price goes up. Same goes for users in Turkey and India where prices are also rising.
