App Store Prices to Increase in Europe Next Month

[d686546s]

I suspect people care more about being in the Apple ecosystem than price. If that weren’t the case there’d have already been a mass exodus to android.

We shall see. When you look at global market share figures there's an understandable trend that Android tends to do really well in regions with lower disposable income. Android already is the dominating mobile operating system in Europe with around 67% and if people get poorer I'd expect this to rise.

You're right that someone who is locked into the ecosystem with multiple devices, even if it's just AirPods and an iPhone, is less likely to switch, but other lock-ins that seem to exist in the US (primarily iMessage and FaceTime) are far less important here where people just use WhatsApp regardless. Plus, Apple's other devices are not cheap either and do need replacing occasionally, so someone who's already struggling might not pay an AirPods premium and just get cheaper generic headphones instead, making it easier to buy another phone going forward.

Again, I'm not expecting any immediate drastic movements other than people just deciding to keep whatever they have, but if the economic situation here continues with high inflation etc etc then I wouldn't be surprised if Apple became less competitive here because other companies do offer phones with stuff people care about for a lot less.

 

[Huwpne]

While Apple certainly is a large corporation, they don't set foreign exchange rates. If they had that level of power, the EU wouldn't dare try to regulate them, lol.

No the do not; but they do expect to maintain their profit margin and blow the end user - like many retailers Apple are profiteering on something that is not within anybodies control

 

[FreedomPenguin]

No the do not; but they do expect to maintain their profit margin and blow the end user - like many retailers Apple are profiteering on something that is not within anybodies control

It’s legal. I support it

 

[Mrkevinfinnerty]

It’s legal. I support it

Also they will need to make up for all the lost revenue in Europe now that their gatekeeping has been banned

 

[Alex_Mac]

Just stop the bs Rap is currently the most listened to and popular genre of music. If they were using nothing but rock or pop music would you still be complaining. They are going to use music in their events and promos there is nothing with it being rap. How in an article about Eu price increases you find away to complain about black music

I see your feelings are hurt, aren’t they?

 

[wanha]

All Apple does is nickel and dime now while continuously releasing half baked software and hardware.

Are you not a fan of Dynamic Island? (or does it not fit your narrative)

Also, I'd say overall Apple is crushing it on the HW front the past few years. All the Apple Silicon Macs are fantastic.

Software quality is an issue, I'll give you that.

 

[wanha]

Yeah, that's not going to happen.

I admire your confidence, but Apple has already done so in the past... just last year in fact

Apple has decreased App Store prices in the U.K., South Africa, other countries

Apple has altered App Store pricing across a number of markets utilizing the Euro as their primary currency.

www.digitaltrends.com

 

[wanha]

We all know that when Euro regains its strength against USD Apple will not reduce the app prices. Companies will always find ways to increase price without backlash.

BTW, I haven’t paid for apps in ages. Haven’t seen good enough apps recently worth purchasing.

"We all know..."

Apple reduced App Store prices in some countries just last year.

Apple has decreased App Store prices in the U.K., South Africa, other countries

Apple has altered App Store pricing across a number of markets utilizing the Euro as their primary currency.

www.digitaltrends.com

 

[EntropyQ3]

There are alternatives to Apple's goods and services for people who really feel appalled by this decision.

Often these discussions end up in a ”go buy Android then” place. Well, some do change platforms of course, and we should all be grateful to them because those are the ones that help keep lock-in exploitation within bounds. But a more common response may be to simply not buy at all. Apple is offering less for more, so I’ll spend my money on a more energy saving freezer and fridge. A new cell phone can wait.

So disposable income goes into more sensible purchases. But it is still gone from the consumer. It may take another couple of years before the itch to upgrade the phone returns, and the customer will evaluate their options again. And there will be new financial holes to plug - will dad buy new bikes for the daughters, or a new cell phone for himself? Hmm. Nevermind when the daughters want new cell phones - ouch! And you really do want to capture the younger age groups.

As Apple gets more of its revenue from services, it makes ever more sense to prioritize volume over margin.

 

[okkibs]

To remain competitive Apple could always lower the prices again at a later point in time, it's not as if they couldn't afford to price products differently, obviously they price them as high as is possible for this premium brand, but if a mass exodus towards Android happened of course Apple would just cook up the same stuff, sell it for less and call it SE Max. "Max, The Ultra for budget conscious folk."

Why is it called profiteering when Apple adjusts prices to match the USD EUR exchange rate? Of course I'd rather see prices stay lower and Apple eating the loss. But what's really happening is that each and every single one of us who doesn't get a 9% raise every year is actually getting their pay cut short.

"That big company" eating this loss is no more fair than most people effectively getting paid less than before for the same work can be fair.

The big question is what Apple will do once the EUR is stronger again - and if they do not lower EU pricing accordingly then we can claim Apple is trying to profiteer off the economic situation. Right now I don't see that yet.

 

[Xand&Roby]

War? Check exchange rates.

Exchange rates were forgotten when is opportune for Apple.

 

[GMShadow]

No the do not; but they do expect to maintain their profit margin and blow the end user - like many retailers Apple are profiteering on something that is not within anybodies control

Inflation and currency valuation are very much in the control of people, but regardless, I wasn’t aware Apple’s margins depended a 15-30% cut on 99 cent apps.

 

[Wildkraut]

It’s time for sideloading and alternative AppStores.

 

[webkit]

Yeah, that's not going to happen.

We all know that when Euro regains its strength against USD Apple will not reduce the app prices. Companies will always find ways to increase price without backlash.

I don't remember Apple lowering prices in Europe when the euro was $1.20, hypocrites!

Exchange rates were forgotten when is opportune for Apple.

Apple has also decreased prices in the past due to currency fluctuations.

One example:

Upcoming tax and price changes for apps and in-app purchases - Latest News - Apple Developer

When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store in certain regions and/or adjust your proceeds.In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will decrease in: South Africa...

developer.apple.com

In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will decrease in:

• South Africa
• United Kingdom
• All territories that use the Euro currency

It was even reported here on MacRumors:

https://forums.macrumors.com/threads/apple-decreasing-app-store-prices-in-the-uk-south-africa-and-many-european-countries.2306402/

 

[mpkossen]

Interesting…the Euro and the dollar are on parity ($1 = 1 Euro). Check for yourself!

VAT in Europe is included in the price and hovers around 20% on average, I think. Apple is not simply going to take on that cost now that the Euro has lost about 20% of its value over the past few years.

 

[webkit]

VAT in Europe is included in the price and hovers around 20% on average, I think. Apple is not simply going to take on that cost now that the Euro has lost about 20% of its value over the past few years.

I think when people compare U.S. prices and EU prices, they should really exclude VAT as that is essentially like sales tax here in the U.S.

For example, the current price of a 128GB iPhone 14 in Germany is €999 which includes VAT/fees of €165. The Apple price is therefore actually €834 which at the current exchange rate is also $834 USD. In this case, Apple is selling the phone for basically the same price as it is in the U.S..... $834 versus $829 U.S. price.

 

[gaximus]

Yeah, but does it ever goes the other way when the EURO gets back stronger? Yeah…thought so…

Are European companies that sell to the U.S. lowering their prices now, since the Dollar is stronger?

 

[gaximus]

By the way, I expect Apple to lower the prices once the Euro recovers its strength.

Do you expect European companies (selling in the U.S) to lower their prices now, since the Dollar is strong?

 

[mikethemartian]

I can't remember the last time I paid for an app from the App Store.....

I haven’t purchased an app in a long time. All the apps I seem to use are the free apps that support services or a hardware device I have purchased.

 

[Lambrijer]

I think when people compare U.S. prices and EU prices, they should really exclude VAT as that is essentially like sales tax here in the U.S.

For example, the current price of a 128GB iPhone 14 in Germany is €999 which includes VAT/fees of €165. The Apple price is therefore actually €834 which at the current exchange rate is also $834 USD. In this case, Apple is selling the phone for basically the same price as it is in the U.S..... $834 versus $829 U.S. price.

And how much of those taxes is actually being paid to the country where the device or service was sold and how much is funnelled through Ireland to avoid paying them?

 

[mrochester]

And how much of those taxes is actually being paid to the country where the device or service was sold and how much is funnelled through Ireland to avoid paying them?

As much as legally possible I presume.

 

[t0rqx]

Cynicism can be dangerously self-sustaining if you don't actually fact-check yourself from time-to-time. Apple has previously reduced local App Store pricing in line with currencies strengthening against the $. On what are you basing your statements that they won't do that again?

Is that so? Did you check the timeline and by how much they corrected? I do not think so, so fact check that first.

 

[Populus]

Apple has also decreased prices in the past due to currency fluctuations.

One example:

Upcoming tax and price changes for apps and in-app purchases - Latest News - Apple Developer

When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store in certain regions and/or adjust your proceeds.In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will decrease in: South Africa...

developer.apple.com

In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will decrease in:

• South Africa
• United Kingdom
• All territories that use the Euro currency

It was even reported here on MacRumors:

https://forums.macrumors.com/threads/apple-decreasing-app-store-prices-in-the-uk-south-africa-and-many-european-countries.2306402/

Yeah man, I already posted this on page 1 of this thread but people keep saying the same over and over.

 

[webkit]

And how much of those taxes is actually being paid to the country where the device or service was sold and how much is funnelled through Ireland to avoid paying them?

Funneled through Ireland? Isn't VAT in Ireland as high or higher than most EU countries?

The current price of a 128GB iPhone 14 in Ireland is €1,029 including VAT of €193. The Apple price is therefore actually €836 which at the current exchange rate is also $836 USD. In this case, Apple is selling the phone in Ireland for basically the same price as it is in the U.S. ($829) and Germany ($834).

 

[Love-hate 🍏 relationship]

Phew good thing my main AppleID is from the US Store. Not that I actually GET TO pay for apps anyway. Everything is stupid subscriptions now as ridiculous as separate „photo filter“ packages and crap like that

How did you do it ? Do u have an American bank card ? Cuz using a vpn to create a foreign account doesn’t work for me .mind sharing how you did it ?im fully disgusted with appple ****ing eu customers