Apple raises App Store prices by 25% thanks to Brexit

App and in-app purchase prices rise in response to the weak pound

Apple is increasing the prices of apps and in-app purchases in the UK as a result of the falling value of the pound against the US dollar.

Following the 2016 EU referendum, the pound fell sharply hitting just $1.20 on 16 January vs $1.49 on 23 June. Combined with the UK's 20% VAT rate, this means trading in the country has become less profitable than it had been for the first half of the year, leading to the price rise.

In real terms, it means an app that previously cost 79p will now be bumped up to 99p, one that was previously 1.49 would now be available to download for 1.99 and a 7.99 app will cost 9.99. In fact, all apps will now cost in pounds what they cost in dollars, making it a whole lot more expensive for Apple customers to load their devices with apps.

"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," Apple told the BBC in a statement. "These factors vary from region to region and over time."

Advertisement
Advertisement - Article continues below
Advertisement - Article continues below

For developers who are a little concerned people won't want to buy their apps at the new higher price, Apple will also be introducing a new 49p and 79p tier, which will have a higher proportion of commission so Apple won't lose out.

"It was certainly inevitable that Apple would change the price point for apps in the App Store to reflect currency changes," Ian Fogg, from IHS Technology consultancy told the BBC.

"But this is a normal part of the way the store works because it does not have dynamically changing prices that would change gradually."

Apple said the price hikes will roll out to the App Store by the end of the week.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now
Advertisement

Recommended

Visit/business-strategy/33311/apple-launches-new-tv-gaming-and-finance-services
Business strategy

Apple launches new TV, gaming and finance services

25 Mar 2019
Visit/business-strategy/startups/354539/uk-tech-investment-jumps-44-despite-brexit-uncertainty
startups

UK tech investment jumps 44%, despite Brexit uncertainty

15 Jan 2020
Visit/hardware/laptops/354509/apple-macbook-pro-16in-review-a-little-bigger-a-lot-better
Laptops

Apple MacBook Pro 16in review: A little bigger, a lot better

10 Jan 2020
Visit/mobile/23617/the-best-smartphones-to-buy
Mobile

Best smartphone 2019: Apple, Samsung and OnePlus duke it out

24 Dec 2019

Most Popular

Visit/policy-legislation/data-governance/354496/brexit-security-talks-under-threat-after-uk-accused-of
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020
Visit/operating-systems/microsoft-windows/354526/memes-and-viking-funerals-the-internet-reacts-to-the
Microsoft Windows

Memes and Viking funerals: The internet reacts to the death of Windows 7

14 Jan 2020
Visit/microsoft-windows/32066/what-to-do-if-youre-still-running-windows-7
Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
Visit/network-internet/broadband/354530/openreach-offers-free-full-fibre-installation-for-thousands-of
broadband

Openreach offers free full-fibre installation for thousands of homes

14 Jan 2020