Apple has announced that it plans to increase App Store prices starting next month. The price hike will be effective in several regions.
Apple to increase App Store prices
Inflation is likely the reason why Apple wants to raise the prices, the currency exchange rate of the Euro is now on par with the US Dollar (€1 = $1). The Cupertino company charges a 30% commission from developers for transactions that are made via its systems, so we can’t expect developers to reduce their app prices either, it is after all how they earn their living. Unfortunately, it will fall to the users who will have to bear the brunt of the rising costs.
An article published on Apple’s website states that the App Store prices will be increased in the following countries: Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and all countries that use the Euro currency (France, Germany, Italy, Spain, etc.).
Note: The website also mentions that Apple will collect and remit taxes to comply with the law in Vietnam. To be more specific, developers will be compensated after the company factors in value added tax (VAT) and corporate income tax (CIT) at 5% rates. The App Store price increases will come into effect on October 5, 2022.
The App Store price changes will not only affect one-time purchases, but also in-app purchases and subscriptions. The one bit of good news about this is that the price hike will not apply to auto-renewing subscriptions. In case you missed it, Apple announced a controversial policy a few months ago, that allows app subscriptions to be renewed automatically without informing the user about any increase in the subscription fees.
Apple’s announcement says that developers may choose to stick to their current prices for existing subscribers, i.e. they could decide to raise their prices in the future. Hopefully, some app developers will continue to provide services at the normal rates for a while before announcing a price hike. Giving users some time to think about an upcoming change in the prices would be the decent thing to do. Then again, since it is up to the developers to come to a decision, I wouldn’t be surprised to see some developers or companies increase their subscription fees right away without batting an eyelid.
A price tier chart is available for download (PDF) on the Apple Developer’s portal, it outlines the rates at which App Store price increases will be implemented. Here’s an example of how it could impact users in Europe. An app that costs €1 now will see its price increase to €1.19, similarly a subscription that is available for €20 currently, will soon cost €23.99.
That may not look too bad at first glance, but that’s about a 19% increase in the prices. And when you include the tax charges that you may incur for the purchase, the prices will increase ever so slightly.
I think that such price increases could be enough to sway users who are frugal with their money, and make them look for cheaper or free alternatives to premium apps and services. It could even drive them towards ad-supported services, which are increasingly popular nowadays.
What do you think about the new App Store prices? Yay, or nay?
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