Apple Hikes U.K. App Store Prices By At Least 25 Percent Due to Weak Pound

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Jan 17, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    Apple today announced changes to its App Store pricing policy in India, Turkey, and the U.K., citing fluctuating foreign exchange rates and taxation changes as reasons behind the move.

    In the United Kingdom, Apple is raising the prices for apps and in-app purchases by at least 25 percent, in light of the weak pound exchange rate, which has been down against the dollar by about 19 percent since the Brexit vote.

    Apps on sale for $0.99 cents will now cost an equivalent £0.99, rather than £0.79. Apps at price Tier 2 will cost £1.99, up from £1.49, with similar equivalent hikes for higher tiers and in-app purchases. Subscription prices will not be affected.

    In India, a service tax of 14 percent as well as levies of 0.5 percent were introduced by the government from December 1, 2016. In Romania, the tax rate has decreased from 20 to 19 percent. In Russia, a value added tax (VAT) rate of 18 percent has been introduced. Apple will submit the collected revenue to authorities on developers' behalf.

    Apple's email notification to developers today covered the iOS and Mac App Store, but price increases are likely to come into effect across iTunes purchases like TV shows and movies. In October, Apple hiked Sterling prices across its Mac lineup for similar reasons.

    The App Store price increases are set to go live in the next seven days. The announcement comes on the same day U.K. inflation surged to 1.6 percent, an increase put down to rises in air fares and the price of food, as well as prices for motor fuels.

    Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

    Article Link: Apple Hikes U.K. App Store Prices By At Least 25 Percent Due to Weak Pound
     
  2. thekeyring macrumors 68040

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    #2
    That's not too bad. I always forget 99c apps aren't 99p as it is now!
     
  3. anthdci macrumors 6502

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  4. Sheza macrumors 68000

    Sheza

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    But the money never goes back to the US anyway?
     
  5. M2M macrumors 6502

    M2M

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  6. Gorms macrumors 6502

    Gorms

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    Thank god we've driven ourselves off the white cliffs of Dover financially. As a nation, maybe we can bring Apple back to profit with these increases in the App Store and the pure strength of our British will.

    Ah well, certain other countries are gonna have it worse next week I guess.
     
  7. maverick808 macrumors 65816

    maverick808

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    It is pretty bad. If you live in the UK then you'll now be paying at least 25% more for all apps from Apple. On the next tier (£1.49 to £1.99) it's about 33% more. Paying a third more for everything seems like quite a jump to me.
     
  8. 3listone macrumors newbie

    3listone

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    And if the pound recovers they will go back down right? right??
     
  9. keysofanxiety macrumors 604

    keysofanxiety

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    Does this apply to all apps? For instance, Logic Pro X / Final Cut Pro X? I was a little confused by the wording in the article as it's only talking about £1 apps or £1.49-£1.99.

    Would I be right in saying that anything above £2 stays the same? :confused:
     
  10. fatboyslick macrumors regular

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    #10
    Great, these prices will NEVER go down now, even if the pound recovers and becomes better than pre-Brexit.
    Same way we've never gone back to 17.5% tax
     
  11. The Game 161 macrumors G5

    The Game 161

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  12. coffeemadmanUK macrumors 6502a

    coffeemadmanUK

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    Of course not, that would be too fair.

    I'm not a business man but surely currency fluctuations should be looked at long term. The pound isn't doing great, I'm aware, but it's due to uncertainty around us leaving the European Union. Come March we will know much more and the currency will recover.

    Sure, change if taxes increase. But a very clear and explainable currency dip is surely a poor way of producing future incomes?

    Either that or this is opportunistic money making?
     
  13. bgraham macrumors regular

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  14. Obi Wan Kenobi macrumors 6502

    Obi Wan Kenobi

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    #14
    "Red White and Blue Brexit" - Is this where Brits see their finances go into the red, turn pale(r) and feel blue about it?
     
  15. thekeyring macrumors 68040

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    #15
    Yeah if the iPhone had increased by 25% it wouldn't be great, but we're talking under £1 here.
    --- Post Merged, Jan 17, 2017 ---
    Yeah! Wasn't Switzerland held up as a great example of a non-EU country? Now we can have a cost of living as high as theirs and kick out all these stupid foreigners! /s
     
  16. djcerla macrumors 65816

    djcerla

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    #16
    those apps are system sellers so, maybe, Apple would eat the currency fluctuation to keep them palatable.

    They're already very fairly priced, though.
     
  17. diddl14, Jan 17, 2017
    Last edited: Jan 17, 2017

    diddl14 macrumors 6502a

    diddl14

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    #17
    Might be a political statement to Trumps latest "Brexit is great" claims..
     
  18. iamgalactic macrumors regular

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  19. AaronM5670 macrumors 6502a

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  20. andy9l macrumors 68000

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  21. keysofanxiety macrumors 604

    keysofanxiety

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    Agreed that they're exceptionally well priced... LPX is by far and away the best DAW in my opinion. However a £50 price hike would certainly hurt. Was just curious if these would go up too as the article doesn't make mention of it.
     
  22. timmyh Contributing Editor

    timmyh

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    #22
    It applies to all tiers, I'm afraid - at least 25% more across the board. I've tweaked the wording to clarify.
     
  23. keysofanxiety macrumors 604

    keysofanxiety

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    #23
    Eeek... best buy those expensive apps now! :(
     
  24. JohnH108 macrumors newbie

    JohnH108

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    #24
    There is no need to worry about that.
     
  25. Superhai macrumors 6502

    Superhai

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    #25
    Most of it goes to the developers, wherever they may reside. I guess the rest goes to Ireland.
     

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