Anyone that uses the Apple App Store may have noticed today that lots of digital content now costs slightly more than it did yesterday. That’s because Apple raised its prices in Canada and several European countries including the UK.
App store prices rise
Apparently, Apple has adjusted its App Store prices to account for local variations in Value Added Tax (VAT) to more closely match the latest exchange rates. Besides Canada, all the Euro-zone countries will see changes today but a few will manage to avoid inflation.
In Iceland for example, the prices will actually decrease, according to an email sent from Apple to developers this week. The U.S. company is made changes to its pricing in Russia, although it’s not clear yet exactly what the changes are. In that case it’s to account for the value of the Rouble against the dollar.
Developers that we know based in the UK have not received any emails from Apple about the matter, so either the changes were just made without consultation, or the emails have got lost in the post somewhere. Fortunately, the prices have not increased by very much. In the UK for example, everything costs 10p more (around 5 baht), so the changes aren’t quite as bad as some people anticipated.
Russians come off the worst
It’s likely to be much worse for the Russians though, as Apple recently took its online stores down and increased the price of its hardware by a significant amount – according to Bloomberg, prices for the iPhone in Russia increased by a whopping 25% in November after the rapid deterioration of the Rouble. And then came the news about the App Store increase – no doubt iPhone sales in the country will suffer.
“Apple sales would probably slow in Russia after that sharp a price increase” said Eldar Murtazin, an analyst at Mobile Research Group in Moscow. “Android smartphone manufacturers such as Samsung may be trying to use momentum to gain market share in Russia.”
Let us know in the comments what you think of the prices rises. Is it fair, and who is to blame?