Apple users are Brexit’s latest victims amid App Store price hike

18 Jan 20175 Shares

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Image: PeoGeo/Shutterstock

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Exchange rate shifts in the months following the UK’s Brexit vote have seen Apple rise the price of products in the App Store, with India and Turkey also affected.

The cheapest paid-for apps in Apple’s App Store previously cost UK customers 79p, but a rise of more than 25pc to 99p has been initiated by the tech company after currency fluctuations seemingly forced its hand.

App Store

The percentage hike is across all tiers of apps and is relatively stable across the board, as seen in the new pricing structure revealed by 9to5Mac following the shift. For example, while apps that previously cost £1.49 are now £1.99, those formerly costing £7.99 are now £9.99.

In-app purchases are going up too, so buying coins in strategy games, such as PokéCoins in the incredibly popular Pokémon Go game, will be more expensive.

“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,” said Apple in a statement. “These factors vary from region to region and over time.”

The news came on the same day that UK prime minister Theresa May outlined her country’s stance towards leaving the EU – a stance colloquially referred to as ‘hard’.

Leaving the EU single market is close to a certainty, with subsequent taxation measures likely to impact further on currency valuations.

Apple has acted now, but there’s no reason for it not to act again, should the financial situation deteriorate even more.

In January 2015, a similar move from the company saw the EU, Norway and Canada experience price rises, while Iceland saw a reduction. This appeared directly in response to VAT changes in these regions.

Last week, it emerged that Apple was nearing a total haul of $1trn in revenues from the sale of iOS products since 2007.

According to figures from business analyst Horace Dediu of Asymco, revenues from iOS product sales will reach $980bn by the middle of this year.

In its first 10 years, the iPhone will have sold 1.2bn units, making it the most successful product launch of all time.

The company is diving into augmented reality following a year of announcements and business moves.

Robert Scoble suggests that the partnership between Apple and Carl Zeiss is so strong that the latter did not showcase any AR or VR merchandise at CES this month, as part of a supposed agreement between the duo.

Citing a source at Carl Zeiss, Scoble thinks an Apple product could be launched as soon as this year.

App Store. Image: PeoGeo/Shutterstock

Gordon Hunt is senior communications and context executive at NDRC. He previously worked as a journalist with Silicon Republic.

editorial@siliconrepublic.com