All territories using euro currency will experience price hike in Apple Store apps and in-app purchases.
Apple announced on Monday that prices of Apple Store apps and in-app purchases in Japan, South Korea, Malaysia, and other countries using euro currency will increase starting October 5.
According to MacRumors, this is a result of the current weakness of euro against the U.S. dollar.
Price Increase Will Be Implemented in Countries Using Euro Currency
According to Apple, the price increase will also be implemented in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, and Vietnam.
Apple said in a blog post that the new prices will be excluding auto-renewable subscriptions, as per MacRumors.
"As early as October 5, 2022, prices of apps and in-app purchases excluding auto-renewable subscriptions," said Apple.
According to Reuters, the price hike will also "reflect new regulations for Apple in Vietnam to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates, respectively."
The Cupertino-based company stated that the developer's proceeds will be calculated on the basis of tax-exclusive price. Afterwards, it will be adjusted accordingly.
Apple said that to indicate that Apple collects and remits applicable taxes in Vietnam, exhibit B of the Paid Applications Agreement will be updated.
Apple did not give details as to why the company decided to increase the prices of its Apple Store apps and in-app purchases. 9to5Mac speculated that it's probably because euro currencies dropped against the dollar.
Just recently, "euro has reached parity with the dollar." This leads for Apple product to become more expensive in Europe.
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Apple Store App and In-Store Purchases Will Increase Next Month
For those using the euro currency, the apps and in-app purchases priced at €0.99 will now be priced at €1.19. Meanwhile, an Apple item priced at €9.99 will be increased to €11.99.
Developers were told that the new Apple Store app prices will take effect on October 5, 2022, as per 9to5Mac.
The pricing and availability section of My Apps will be updated soon once these changes go into effect.
Once these changes are put into effect, developers can start changing the price of their offered apps and in-app purchases at any time in App Store Connect. This also covers auto-renewable subscriptions.
In case developers offer subscriptions, they can choose to keep prices for existing subscribers.
Every once in a while, Apple make adjustments in its App Store price tiers around the world. When this happens, the company put the information about the price increase on Apple's developer website.
According to 9to5Mac, to be able to adjust to the increase in Apple Store apps and in-app purchases, some developers are given the option to adjust the price tier of their app.
The App Store is one of the major sources of revenue for Apple. Based on an independent study by Apptopia, over the past year, app developers have already increased prices of Apple Store apps and in-app purchases.
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