Brexit Causes App Prices to Surge Nearly 25% in the UK

Apple will be raising the price of apps and in-app purchases from the App Store in the UK by almost 25% due to currency fluctuations stemming from the UK’s June decision to exit the European Union, or ‘Brexit’ as it has been called in the media.

According to a report by The Guardian, Apple informed developers of the price hike in an email sent out earlier today. In the email, Apple told developers that “when foreign exchange rates or taxation changes, we sometimes need to update prices on the App Store”. The email is referencing the sudden depreciation of the pound, which has fallen 18.5% when compared to the dollar since the UK’s decision to leave the European Union.

The price raise, which will take place over the next seven days, will see apps sold for $0.99 in US jump up to £0.99 from £0.79, and more expensive apps will see similar price hikes – £1.49 apps will jump up to £1.99, and, according to 9to5Mac, in-app purchases like the ‘All Worlds’ upgrade for Nintendo’s popular new Super Mario Run app will bump up from £7.99 to £9.99.

This isn’t the first time Apple has announced pricing changes stemming from ‘Brexit’. Back in October, Apple significantly bumped up the prices on older model MacBooks to reflect currency fluctuations since the Brexit decision. A £999 13-inch MacBook Pro model, for example, jumped up to £1,249 overnight, and other models saw a similar rise in price. Of the October price increase, Verdict Retail Analyst Patrick O’Brien told the BBC, “Apple has to recalibrate prices after significant currency fluctuations, and since (Brexit), UK prices are out of sync with the dollar,” which seems to echo the email Apple sent out today.

Following the email, Apple provided TheVerge with an official statement, explaining that “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 over time.”

At the moment, the price change has only been announced for items in the App Store, but it will likely affect movies and music in the iTunes Store, as well. Prices in Turkey and in India are also expected to see a rise.

Want a FREE iPhone 7? Click here to enter our monthly contest for a chance!
Follow us on Apple News by pressing the (+) button at the top of our channel

from http://ift.tt/2k2zhWe
via IFTTT