Apple has announced upcoming price and tax changes for apps and in-game purchases. On October 5th, prices will increase on the App Store in Asia and Europe.
Prices will increase in the following countries: Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam and other territories that use the euro as currency. In Vietnam, the new prices will also reflect Apple’s new rules for collecting and remitting the appropriate taxes.
The price increase excludes auto-renewable subscriptions, so the pricing section of My Apps will be updated once it takes effect.
The company assured users that revenue is based on the price, excluding taxes. The company also presented price level charts that show that the adjustments are different in each region: the lowest tier one price for a game or in-game purchase is now €1.19 in the Eurozone’s.
The reason for Apple’s price increase
The company has not yet reported on the price increase, but the upcoming changes are seen as a reaction to the fall in the exchange rate of some currencies against the dollar.
Last year there was something similar: the company increased the cost of buying apps for residents of South Africa, the UK, and other regions that use the euro as the currency. This is the second price increase for European consumers in two years.
Side note: Apple ranks first in advertising.