Apple hike the price of its application in AppStore due to the exchange rate fluctuation and taxation policies in several countries. The affected countries are India, Turkey and the United Kingdom.
In UK, one of the company’s largest market, app prices are increasing of around 25 percent according to 9to5 Mac. The increase is mainly caused by the weak exchange rate of poundsterling. As an illustration, the application at the price of $0.99 in the US will now cost £0.99 in the UK, an increase from £0.79.
The weakened poundsterling is caused by the uncertainty in Brexit issue. On Monday, the sterling dropped to the lowest point in 3 month to below $1.20 as reported by Bloomberg. Poundsterling are weakened in anticipation to Prime Minister Theresa May’s preparation to withdraw the United Kingdom from European Union and gaining freedom to get commercial deals with other countries.
The fluctuation in exchange rate was not the sole reason for the price hike. Recently the UK government has increased the VAT rate by 20 percent which made it to be dificult for Apple to maintain the price. Therefore, the Cupertino-based company has to adjust their price in the AppStore.
The applicaton Super Mario Run which was sold at £7.99 will now be at £9.99. Apple has also released the new pricing matrix in regard to the change of price.
Apart from the increase in the UK, the price of AppStore applications in India and Turkey has also increased due to the fluctuation of exchange rate in the respective countries. The increase will also affect price of music, TV Shows, books in the iTunes store.
Apple has notified the developers regarding the increase of the price in those countries. Apple has also informed that price tiers on the App Store are set internationally based on several factors which vary from region to region and over time. Those factors include currency exchange rates, business practices, taxes, and the cost of business.
Watch the best of AppStore in 2016 from Apple below:
