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

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.

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