App Store Prices To Rise 25% due to Brexit

The app market is stronger than ever, and is actually estimated to be an $89 billion a year business!

Despite this, Apple’s App Store is about to raise the cost of apps by 25% due to the weak pound exchange rate post-Brexit.

Apps which were previous sold for £0.79 will now cost £0.99, while the second tier apps which were £1.49 will now rise to £1.99.

Apple isn’t just raising prices in the UK either, India and Turkey app prices will also be increased this year.

The new app costs will match those of the US, so what costs $0.99 will now cost us £0.99.

The rise in prices will also affect in-app purchases; however it won’t affect subscriber chargers.

Apple has commented sayings –

“Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates, business practices, taxes, and the cost of doing business. These factors vary from region to region and over time.”

Since the Brexit vote last June, the pound has been amongst the worst-performing currencies against the dollar.

Because of this, Apple has already raised the UK prices of their iPhones and iPads last September and also raised their Mac computers prices in October by a similar amount.

Apple have however tried to lessen the impact of the pricing increase by introducing new lower price tiers, which means app publishers can now charge £0.49 or £0.79 for purchases, but I doubt many publishers will be doing this as it will mean less money in their pockets.