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Apple raised prices on the Apple App Store in early October

The app prices for in-app purchases in the Apple App Store will increase. Apple announced that apps in the App Store would become more expensive from October 5. What costs do you have to expect?

Apple plans to raise prices in various countries, including European countries, costing 20 percent more on average. The increase in the European countries results from the weak exchange rate. In Vietnam, the increase reflects new regulations for Apple to collect and pay applicable taxes, specifically value-added tax (VAT) and corporate tax (CIT) at five percent each.

How much increase in the in-app purchase?

Apps that already cost 0.99 euros will now cost 1.19 from October 5. All other price levels will also adjust as per the scheme. The 20 percent increase will only affect in-app purchases but not the subscriptions available in apps. Apple’s services, such as Apple TV+ or Apple Music, are not affected by the increase.

Reasons for increases in price

Apple does not explain the increase in prices. The cause is likely to be the exchange rate changes in recent months. The euro, for example, has fallen to its lowest level in two decades: in September 2021, 1.18 US dollars was one euro, and both currencies are now on par. High inflation, rising interest rates, and increasing energy prices are also likely to play a role. In addition to European countries, Apple is raising prices in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, and Vietnam.

Developers automatically go along with the price increase.

The cost of app in-app purchases increases automatically, as developers can choose from apple-specified price levels when pricing and cannot set individual prices. These so-called pricing tiers help apps in different currencies to cost about the same. However, developers have the option of not supporting Apple’s price increases, for which alternative tiers are available. Accordingly, certain apps may maintain their prices – of, for example, 0.99 euros.

Price increment in Apple’s Phone

Apple’s iPhone 14 with all variants is significantly more expensive than past models. On average, prices increased by a massive 14 percent compared to the devices from the previous year; for example, the iPhone 14 Pro Max’s least cost is 1,449 euros – 16 percent higher than the previous model. Fears that – Apple can increase ever higher prices.

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