ad: Annual 2024 Now Open For Entries!
*

Apple App Store raise price of all apps by 25% because of Brexit

Published by

With the post-Brexit pound plummeting faster than Donald Trump's approval rating, Apple have decided to set a terrifying precedent in the tech community by raising the price of all apps in the UK by 25%. In real terms, this means an app that used to cost 79p will now cost 99p. Entertainment downloads (TV, films and songs etc) have yet to be affected, but we certainly wouldn't rule it out in the near future. This effectively brings us to parity with the US, who pay 99 cents for apps that used to cost us 79p, though it should be noted that the US price doesn't include VAT and prices are also set to rise in India and Turkey, so we're not suffering alone.

App developers do not fully price their own apps but choose one of several price tiers, which Apple applies across the countries in which it sells apps. The first tier is a price of 99 cents in the US, 79p in the UK, €1.09 in the eurozone, and so on. The change, which will take effect in the next week, pushes the UK price of the first tier up to 99p. Whilst the hike of 25% might seem insignificant for smaller apps, take into account that the price hike will also apply to more expensive apps and in-app purchases. So, for example, the recently released Super Mario Run, which originally retailed in its full form for £7.99, will now cost just under a tenner.

The news should come as little surprise, of course, given how Apple already hiked the prices of its iPhones, iPads and Mac computers last year. Apple’s new iPhone 7 starts at £599, against £539 for the previous model, while the prices of some laptops were increased by 20%. The price rises were announced the same day UK inflation surged to 1.6%, higher than expected. The Office of National Statistics said the increase was driven by rises in air fares and the price of food, along with prices for motor fuels. It's also news that arrives amidst Theresa May's suggestions that the UK will break from the single market (which has now caused the value of the pound to fall to under $1.22), so expect many similar announcements from other major brands in the coming days and weeks. Microsoft and Tesla have already increased the cost of certain products in response to the falling pound. Microsoft has raised the price of cloud computing and enterprise software for UK businesses, while Tesla has increased prices by 5%.

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.” An Apple Spokesperson

*

Comments

More Leaders

*

Leaders

Inspiring Female Leaders: An Interview with RAPP CEO Gabrielle Ludzker

Gabrielle Ludzker is not just any CEO. The current head honcho at customer experience agency RAPP has spent her career breaking away from the traditional corporate CEO stereotype. and leads to inspire rule breakers. Gabby is an inspirational rule...

Posted by: Benjamin Hiorns
ad: Annual 2024 Now Open For Entries!