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Apple Decreasing App Store Prices in the UK, South Africa, and Many European Countries

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Apple today told developers that it is updating App Store pricing in some countries due to taxes and changes in foreign exchange rates.

app-store-blue-banner.jpg

Over the course of the next few days, app and in-app purchase pricing is set to decrease in South Africa, the United Kingdom, and all territories that use the Euro currency. Pricing of auto-renewable subscriptions will not change.

Apple is increasing prices in Georgia and Tajikistan due to new value-added taxes of 18 percent, and there will be an increase in proceeds developers collect in Italy due to a change with the Digital Services Tax effective rate.

Apple says that once the changes go into effect, the Pricing and Availability section of My Apps for developers will be updated. Developers can change the price of apps and in-app purchases in App Store Connect at any time.

Article Link: Apple Decreasing App Store Prices in the UK, South Africa, and Many European Countries
 
Article Link
https://www.macrumors.com/2021/08/03/app-store-pricing-decreases-apple-developers/
I wonder if Apple might also be feeling a bit of anti-competitive pressure about its App Store.
 
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Hopefully it is just a sign of Apple preparing to change their UK prices more broadly, fingers cross after next month’s product releases. Parity pricing between dollar and pound made sense when the pound was closer to $1.2/£ after the 20% VAT, but given than the pound has steadily been closer to $1.4/£ for ages, it feels like we’re being ripped off in the UK.
 
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mariusfanu said:
It’s about App Store (aka applications) not Apple Store
Click to expand...
I know - but articles like this, usually denote that Apple are treating 1USD/1GBP differently. Especially if we're going down to increments of 10p etc.
Like I say, I doubt it'll encourage change in pricing for expensive hardware - as the only difference in price we have now is when we get to £1249/$1299 iMac.
 
JUiCEJamie said:
Changing prices in the UK? Will this mean that pricing parity for $999/£999 on a MBA etc; will change too? Hopefully, but I doubt it.
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They already have for things like the Apple Watch/iPad Pro/new iMac etc since the dollar has weakened over the past year. Positive signs.
 
Apple is extremely worried about South Korea passing their law on third party billing providers. Rightfully so.. It's time everyone takes them to task and allows healthy competition.
 
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JUiCEJamie said:
Changing prices in the UK? Will this mean that pricing parity for $999/£999 on a MBA etc; will change too? Hopefully, but I doubt it.
Click to expand...
I think you have to bear in mind that you can't really do a direct comparison of US / UK prices as UK price is inclusive of tax (VAT) where the US price isn't as taxes can vary massively by state (and even county and city I think) so get added on at checkout based on delivery address(?).
 
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calzon65 said:
I wonder if Apple might also be feeling a bit of anti-competitive pressure about its App Store.
Click to expand...

Nope, not at all. They're still taking the same percentage. 70%-85% of that price decrease comes out of the developer's pocket, if you will.

In reality, this is just reflecting changes in exchange rates to keep pricing tiers consistent.
Essentially, Apple and developers should earn roughly the same from a $0.99 app no matter where in the world it's sold. Since exchange rates fluctuate, that means prices have to change.
 
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Armada2 said:
Apple you're drunk!! Go home!! you never decrease prices 🤣🍺
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Apple prices (and others) has gone up a lot in the UK in recent years due to the weakening pound, but it has recovered a bit, so going back down a small amount. It is still higher than it was, so not really a decrease over the long term.
 
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So many bad jokes and puns.

This is standard for apple to do. They adjust the prices according to the changing taxes by government, exchange rates etc.

Can't wait tell Apple is forced to open their payment method up - All those developers who want to use their own system, get ready for all kinds of micromanagement of stuff like this.

I don't remember the dev, but he/she stated that having Apple handle all these stuff in the background for them is worth the 30% cut Apple takes. Taxes, exchange rates etc. All bundled for a flat rate. Yeah the big multiple billion dollar global companies could probably do it in-house for less, but the average joe, I wish you luck.
 
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JUiCEJamie said:
I know - but articles like this, usually denote that Apple are treating 1USD/1GBP differently. Especially if we're going down to increments of 10p etc.
Like I say, I doubt it'll encourage change in pricing for expensive hardware - as the only difference in price we have now is when we get to £1249/$1299 iMac.
Click to expand...
But the costs are greater in the UK.

Store staff cost more, warehousing staff cost more, much longer warranty to cover costs of, far more consumer protections to cover the costs of, then the small difference of the UK price being inclusive of all taxes where the US price is not.

selling and distributing in the UK doesn’t cost the same as selling and distributing in the US
 
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Lihp8270 said:
But the costs are greater in the UK.

Store staff cost more, warehousing staff cost more, much longer warranty to cover costs of, far more consumer protections to cover the costs of, then the small difference of the UK price being inclusive of all taxes where the US price is not.

selling and distributing in the UK doesn’t cost the same as selling and distributing in the US
Click to expand...
Are u serious, sure it's different, but not by :apple: much different?
 
calzon65 said:
I wonder if Apple might also be feeling a bit of anti-competitive pressure about its App Store.
Click to expand...
They do this every year. I’ve followed MR for about 10 years and have seen more than 10 articles where Apple modifies the foreign currency rate. It’s quite common for Apple to do so they have the same margin wherever someone buys from.
 
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