Apple will be increasing the prices of apps and in-app purchases from the App store in a number of the countries including UK, India and Turkey. According to reports, Apple will reportedly charge Rs 80 for every $0.99 purchase, and earlier this was pegged at Rs 60. In effect, this is a nearly 33 per cent increase for each dollar pricing. At the time of writing, the price change isn’t reflecting; however, it is expected to start showing on the App store in coming days to come.
In a press statement Apple stated, “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. These factors vary from region to region and over time.” Though the changes currently apply to iOS and App store and there won’t be hike for iTunes or Apple Music.
The news of Apple increasing the app prices was first confirmed in an email to developers, in which Apple said it will raise the lowest app price from £0.79 to £0.99, as revealed in a report on 9to5Mac.
Both UK and Turkey are equally affected by Apple’s new price slabs. It’s being said that Apple has raised the apps prices in the UK in response to pound depreciation after the country announced it would be exiting the European Union. The prices of apps and in-app purchases in the UK saw an increase of 25 per cent.
As in case of India, Apple had previously confirmed the company would be charging a service tax of 14 per cent and additional tax of 0.5% for Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC) for apps and in-apps purchases, effective December 1.
One of the reasons for the increase in the prices of apps on the app store could be linked due to change in tax laws in India.