apple inc AAPL plans to increase prices for apps and in-app purchases in the App Store in Asian and European countries as early as next month, according to a company notice to developers.
What happened: Cupertino said the increase applies to Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam and all territories using the euro. The changed prices are effective from October 5th.
The move may have been sparked by local currencies depreciating against the US dollar, Bloomberg reported. Apple said the increases in Vietnam also reflect new regulations that require it to collect VAT and corporate income tax.
However, the price increases do not apply to auto-renewable subscriptions. The company also provided developers with updated pricing tier charts.
Proposed hikes in Japan have been particularly steep, with a target of a 30% increase, Bloomberg noted. The yen has depreciated around 25% against the US dollar since the beginning of the year. Earlier this year, Apple increased the prices of its hardware products, including the iPad and iPhonein Japan, citing currency differences.
The euro also weakened, losing around 12% against the dollar since the beginning of the year. He is currently trading almost equally.
See also: Why this Apple expert believes the App Store can survive legal and regulatory challenges
Petrol Gas Take: Apple’s latest move could rub salt in the wound, as the average price for in-app purchases on iOS has risen by over 40% since last year, according to apptopia.
With the US given the prospect of the dollar remaining strong, at least in the short to medium term federal reserveApple’s dogged stance on aggressive rate hikes could cause even more pain for Apple users.
Balancing pricing and demand could be a challenge for Cupertino uncertain economic environment. The firms June Quarter Results showed that revenue from services was slightly below estimates.
price action:…
