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App Store Prices Increase in Europe and Canada Amidst Product Price Hikes in Brazil

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After sending out an email to developers earlier in the week detailing App Store price changes coming to a few territories, Apple has today raised the price of apps in all countries within the European Union, Norway, Russia, and Canada. The price increases are due to shifting currency exchange rates and tax increases in some countries.

The price of the least expensive paid apps in the App Store, which are priced at $0.99 in the United States, moved from £0.69 to £0.79 in the UK, EUR0.89 to EUR0.99 in EU countries, and $0.99 to $1.19 in Canada, with similar price increases hitting the likes of Norway and Russia. On the other hand, app prices in Iceland are seeing a cut from where they were earlier in the week.

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Simultaneously, the company has raised the prices of its products in Brazil by an average of 10 percent, where they're already the highest priced in the world. As reported by ZDNet, the 16 GB iPhone 5s jumped to R$ 2,500 ($938), a 13.6 percent increase from R$ 2,200 ($825). The iPhone 6 Plus saw a smaller 6.81 percent hike to R$ 4,700 ($1,763) from an original R$ 4,400 ($1,651).

Just last week Apple raised developer program prices in a number of countries, most notably Germany and the UK, so today's app price hikes in these territories no doubt fall in line with the company keeping up with fluctuating currency values and foreign exchange rates.

Both changes come on the heels of Apple celebrating the App Store's biggest sales day in history on New Year's Day, along with a prosperous 2014 that saw total developer earnings hit $25 billion since the store's opening.

Article Link: App Store Prices Increase in Europe and Canada Amidst Product Price Hikes in Brazil
 
Article Link
https://www.macrumors.com/2015/01/09/app-store-increase-europe/
This is a result of a much strong dollar in the last few quarters. Can't blame Apple for simply responding to currency exchange markets. It takes more € to buy a $ than it used to.

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I know what you're all thinking: Apple is much quicker to raise prices when the dollar strengthens, than they are to lower prices when the dollar weakens. :rolleyes:
 
We're already paying 50% for our iPhones, iPads and Macs, so what's another 20% :eek:
 
macintologist said:
This is a result of a much strong dollar in the last few quarters. Can't blame Apple for simply responding to currency exchange markets. It takes more € to buy a $ than it used to.
Click to expand...


Well, not entirely. They've increased taxes on software within the EU and Apple (unsurprisingly), have decided to let their customers take the hit.

I know, they're not a charity.
 
Imory said:
They've increased taxes on software within the EU
Click to expand...
Actually, they haven't. They changed the rules on where VAT has to be paid. Until 31 December VAT had to be paid to the country the company selling software/music files/e-books is registered in (Luxembourg in Apple's case). Since 1 January VAT is paid to the consumer's country of residence. That VAT varies between 17 % in Luxembourg and 27 % in Hungary. It's the same in the US, just exchange country for state and VAT for sales tax.
 
LiterallySimon said:
Actually, they haven't. They changed the rules on where VAT has to be paid. Until 31 December VAT had to be paid to the country the company selling software/music files/e-books is registered in (Luxembourg in Apple's case). Since 1 January VAT is paid to the consumer's country of residence. That VAT varies between 17 % in Luxembourg and 27 % in Hungary. It's the same in the US, just exchange country for state and VAT for sales tax.
Click to expand...

You're absolutely right.
 
Imory said:
Well, not entirely. They've increased taxes on software within the EU and Apple (unsurprisingly), have decided to let their customers take the hit.

I know, they're not a charity.
Click to expand...

Well not entirely. :) It was due from Apple's tax avoidance and now Apple and it's store must use the customers correct tax.
 
The in-app subscription rates for the GetCloak VPN service have increased too in my country. Gone from 6.99 to 7.99 a month.


It's ok, I'll subscribe via the website instead, for less money, completely cutting Apple out of the loop. More money for the developers, none for Apple!
 
macintologist said:
This is a result of a much strong dollar in the last few quarters. Can't blame Apple for simply responding to currency exchange markets. It takes more € to buy a $ than it used to.

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I know what you're all thinking: Apple is much quicker to raise prices when the dollar strengthens, than they are to lower prices when the dollar weakens. :rolleyes:
Click to expand...

Yep. Here in Brazil, App Store products and services are not charged with importing taxes. I wonder when the government starts charging app purchases with the usual ~80%.
 
LiterallySimon said:
It's the same in the US, just exchange country for state and VAT for sales tax.
Click to expand...

I Am Not An American but I didn't think the US charged sales tax on inter-state sales - this change is all about VAT on inter-state transactions.

Also, in the EU it is common practice (Enshrined in law, I think) that retail prices are quoted including VAT, whereas the US treats sales tax as a "hidden extra" added at the time of purchase - so a change in US sales tax wouldn't mean Apple had to change their published prices.

However, this price rise does call into question the argument that one reason Apple's EU prices are higher than the dollar equivalent is that they already include VAT. Interestingly, the invoice emails from the iTunes store don't show how much VAT was paid. Discuss...
 
Wonder why they don't let the creators set the price they wish to charge for their work?
 
Prices seem correct for UK VAT rate

Imory said:
Well, not entirely. They've increased taxes on software within the EU and Apple (unsurprisingly), have decided to let their customers take the hit.

I know, they're not a charity.
Click to expand...

EU law says they have to charge the local VAT rate, as such Apple now pass this increase onto the consumer

$0.99 is about £0.66 at todays rates, add on the UK's 20% VAT and this makes it £0.79, which is what apple is charging
 
PJWilkin said:
EU law says they have to charge the local VAT rate, as such Apple now pass this increase onto the consumer

$0.99 is about £0.66 at todays rates, add on the UK's 20% VAT and this makes it £0.79, which is what apple is charging
Click to expand...
Yeah, plus if the tax paid is actually going into the UK's coffers instead of Luxembourg's or Ireland's where they cut backroom deals to allow these companies to transfer them to a Bermuda/Cayman Island subsidiary, then I'm fine with that.

Assuming of course the UK government isn't cutting another backroom tax deal with Apple. I wouldn't put it past them to do so.
 
theluggage said:
I Am Not An American but I didn't think the US charged sales tax on inter-state sales - this change is all about VAT on inter-state transactions.
Click to expand...
Digital goods are treated differently from tangible ones. It's not even clear if a download constitutes an inter-state sale afaik. About half of US states do charge sales tax on downloaded goods.
theluggage said:
Also, in the EU it is common practice (Enshrined in law, I think) that retail prices are quoted including VAT, whereas the US treats sales tax as a "hidden extra" added at the time of purchase - so a change in US sales tax wouldn't mean Apple had to change their published prices.
Click to expand...
That's correct but what is your point? I was talking about taxation, not published prices.
theluggage said:
However, this price rise does call into question the argument that one reason Apple's EU prices are higher than the dollar equivalent is that they already include VAT. Interestingly, the invoice emails from the iTunes store don't show how much VAT was paid. Discuss...
Click to expand...
The invoices do state EU VAT that was paid since 1 January. Apple wants to have universal post tax prices in the EU but has to pay different amounts in tax depending on where customers live. So it has to calculate a virtual VAT or average for all its sales in the EU. That one is higher than before as it had to pay 15 % on all sales (except e-books, that's another story) until 31 December. Now it is at least 17 % (Luxembourg increased its VAT rate) and the average must be somewhere around 20 % (D 19 %, NL/ES 21 %, UK/F 20 %).
In a nutshell, VAT rose by about 5 % while the Euro weakened. Combined, these are reasons for Apple to increase its prices. Maybe too much but they love their margins.

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r3loaded said:
Yeah, plus if the tax paid is actually going into the UK's coffers instead of Luxembourg's or Ireland's where they cut backroom deals to allow these companies to transfer them to a Bermuda/Cayman Island subsidiary, then I'm fine with that.

Assuming of course the UK government isn't cutting another backroom tax deal with Apple. I wouldn't put it past them to do so.
Click to expand...
You are confusing VAT and taxes on profits. There never were any deals on VAT rates.
 
MacRumors said:
After sending out an email to developers earlier in the week detailing App Store price changes coming to a few territories, Apple has today raised the price of apps in all countries within the European Union, Norway, Russia, and Canada. The price increases are due to shifting currency exchange rates and tax increases in some countries.
Click to expand...

No, prices in Russia are now below.
 
As someone who works in a company that ships containers from China to the US, I cant blame them for doing it since chinas ports have had strikes lately causing massive delays.
 
A lot of import goods for Canadian are already more expensive since the Canadian dollar (or the oil prices) started to drop. For example, brand new PS4/Xbone games are $69.99 instead of $59.99 when the US and Canadian dollars are at par.

I will not be surprised if Apple adjusts the price again later... (as the Canadian dollar drops even more)
 
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