The price hike will start to take effect as early as October 5, according to a blog post from Apple.
The maker of the iPhone, Apple, has announced that it will increase the price of software and in-app purchases on its App Store. In various countries, from Europe to Asia, the price increase will go into effect in October. The Cupertino-based company made the price increase public in a blog post, noting that it would increase the cost of apps and in-app purchases in Malaysia, Japan, and all other countries that use the euro.
The updated prices do not include memberships that automatically renew. The blog post states that the price rise will start on October 5.
“On October 5, 2022, prices for apps and in-app purchases (except subscriptions that automatically renew) on the App Store will increase in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and all nations that use the euro.”
According to the blog post, these price increases in Vietnam are a result of new regulations forcing Apple to collect and submit the proper taxes, which are VAT and CIT at rates of 5% each.
List of countries where prices are likely to increase
- Poland and Pakistan
- South Korea, Sweden
ALL COUNTRIES USING THE EURO AS THEIR MONEY UNIT
Apple claims that the developer’s earnings will be calculated based on the tax-exclusive pricing and would be adjusted accordingly. It says, “Exhibit B of the Paid Applications Agreement will represent Apple’s collection and payment of appropriate taxes in Vietnam.”
The Pricing and Availability section of My Apps will change once these changes go into effect. Developers can change the prices of the programs they offer and in-app purchases (including subscriptions that automatically renew) at any time using In-App Store Connect. If they offer subscriptions, they might decide to maintain the same prices for current clients.
Apple raised the cost of the app store.
An important source of revenue for Apple is the App Store. The company reported service revenue for the June quarter that was marginally below forecast. Apptopia’s impartial analysis reveals that app developers’ expenses have risen over the past 12 months. Compared to July 2021, the average price of in-app purchases is 40% higher.