Apple has announced that it will be jacking up prices of apps and in-app purchases on the App Store in certain regions starting next month. The price increase will affect users in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and “all territories that use the euro currency.”
In a notice to app developers, Apple revealed that the price change would go into effect as early as October 5, and the company will adopt a new price tier chart for all paid apps and in-app purchases on the platform. However, auto-renewable subscriptions will continue at the current prices.
While Apple has not provided any reasoning for this change, some speculate that it could be related to the recent drop in the exchange rate of local currencies against the dollar.
In Vietnam, the price change also takes new tax regulations into account. The company notes that the price increase reflects “new regulations for Apple to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively.”
Apple has also shared an updated price tier chart for all affected regions, which details the price increase in all countries that use the Euro as the currency. As per the chart, apps and in-app purchases previously priced at €0.99 will cost €1.19 following the change. The highest tier, which previously cost €999, will increase to €1,199.
As mentioned earlier, the price change will not affect auto-renewable subscriptions, and developers will have the option to keep subscription prices the same for current subscribers. However, developers can increase the subscription prices at any time in App Store Connect.
It’s worth mentioning that Apple is also planning to introduce new ads to the App Store later this year. As per recent reports, the company plans to implement new ad placements by the holiday season.
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