Apple to hike App Store prices in several countries. Is India in the list?

Apple to hike App Store prices in several countries. Is India in the list?


iPhone maker Apple has announced to increase the prices of apps and in-app purchases on its App Store. The price hike will come effective from October in several countries from Europe to Asia. Announcing the price increase via a blog post, the Cupertino-based company said that the prices of apps and in-app purchases will increase in Japan, Malaysia and all territories that use the euro currency.

The new prices will not include the auto-renewable subscriptions. In the blog post, Apple says that the price hike will be effective as early as October 5.

“As early as October 5, 2022, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and all territories that use the euro currency. In Vietnam, these increases also reflect new regulations for Apple to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively,” the blog post states.

List of countries where price will increase

  • Chile
  • Egypt
  • Japan
  • Malaysia
  • Pakistan
  • Poland
  • South Korea
  • Sweden
  • Vietnam
  • All territories that use the euro currency

The iPhone maker says that the developer’s proceeds will be calculated on the basis of tax-exclusive price and will be adjusted accordingly. “Exhibit B of the Paid Applications Agreement will be updated to indicate that Apple collects and remits applicable taxes in Vietnam,” it adds.

Once these changes go into effect, the Pricing and Availability section of My Apps will be updated. Developers can change the price of their offered apps and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect. In case they offer subscriptions, they can choose to preserve prices for existing subscribers.

App Store is a major source of revenue for Apple. The company reported revenue from services that narrowly missed estimates in the June quarter. According to an independent study by Apptopia, app developers have already raised prices over the past year. The average price of in-app purchases increased by 40% in July from the same month of 2021.

 

 

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Author: Shirley