IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

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."

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

The Total Economic Impact™ Of Turbonomic Application Resource Management for IBM Cloud® Paks

Business benefits and cost savings enabled by IBM Turbonomic Application Resource Management

Free Download

The Total Economic Impact™ of IBM Watson Assistant

Cost savings and business benefits enabled by Watson Assistant

Free Download

The field guide to application modernisation

Moving forward with your enterprise application portfolio

Free Download

AI for customer service

Discover the industry-leading AI platform that customers and employees want to use

Free Download

Recommended

Apple patches 'superpower' zero-days affecting iPhones, iPads, and Macs
zero-day exploit

Apple patches 'superpower' zero-days affecting iPhones, iPads, and Macs

18 Aug 2022
Apple cuts ties with Jony Ive after 30 years
Hardware

Apple cuts ties with Jony Ive after 30 years

13 Jul 2022
Best business smartphones 2022: The top handsets from Apple, Samsung, Google and more
Mobile

Best business smartphones 2022: The top handsets from Apple, Samsung, Google and more

23 Jun 2022
Apple faces a catch-22 decision with iPhones and USB-C
Policy & legislation

Apple faces a catch-22 decision with iPhones and USB-C

8 Jun 2022

Most Popular

Apple patches 'superpower' zero-days affecting iPhones, iPads, and Macs
zero-day exploit

Apple patches 'superpower' zero-days affecting iPhones, iPads, and Macs

18 Aug 2022
Why convenience is the biggest threat to your security
Sponsored

Why convenience is the biggest threat to your security

8 Aug 2022
Google is now spending a staggering amount on blockchain
Business strategy

Google is now spending a staggering amount on blockchain

17 Aug 2022