Apple just recently announced that it will be raising the prices on apps sold through its App Store in U.K. by 25 percent after current falls in the value of the pound in the wake of the Brexit vote. This means that an app or in-app purchase that costs 79 pounds before will now sell for 99 pounds.
The giant phone company said that there were many factors that influence App Store price tiers internationally, that includes currency exchange rates, taxes, business practices, and the cost of doing business. The change followed the higher prices for iPads, iPhones and Mac computers that were introduced second half of last year.
In addition, App Store price increase will not only affect U.K. alone. It's also expected to hit India due to changes in service taxes, and as well as Turkey, due to depreciation in the Turkish lira. The pound's value fell 18.5 percent against the U.S. dollar over the last six months.
Apple users still have a time of a few days for them to buy apps at the old prices. The new pricing scheme is said to take effect next week. It's also anticipated that within few weeks of the app price increase taking effect, a price increase in Apple's iTunes and iBooks stores will also follow.
The pound has decreased from more than 1.45 US dollar to under 1.22 US dollar since it's June vote to leave the EU. App developers don't fully price their own apps but rather select one of several price tiers, which Apple currently applies across the countries it sells apps in.
Apple is not the only company that will increase its product prices due to currency fluctuations. HTC and Tesla also announced that it will start its price increase in October, just in time that Apple was hiking prices by 20 percent for its Macintosh computer line. Microsoft also announced its price increase of 22 percent for British businesses.
Chief revenue officer at Fisku DSP, Matt McGinty noted that the higher prices or not, the U.K. will still remain as an English-speaking market for developers. He added that Global apps still need to penetrate the U.K. market. He also predicted that once Apple's new rates take effect, Android developers is expected to follow.