Apple iOS app EU price hike imminent

9 Jan 2015

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Consumer tech giant Apple is about to raise the cost of its iOS apps, with less than two days’ notice.

The EU, Norway and Canada will see the cost of apps rise, Russia’s pricing system will “change”, and Iceland will actually get a reduction.

iTunes Connect members allegedly received a notice on Wednesday, as seen on Apple Insider, making the announcement.

The price hikes have not been clarified just yet, but it’s only a matter of hours before we find out the differences.

This is all in response to VAT changes in different jurisdictions, with Russia’s case the most understandable, considering the company’s decision-making there of late.

Apparent message from Apple to its App Store team, as seen on AppleInsider.com

A change of EU policy at the turn of the year means VAT rates now depend on the customer’s location. Prior to this, it was based on Apple’s low-tax Luxembourg residence.

Currently, iOS developers are forced to operate within a price-tiering system with the App Store, with the cheapest level, until now, US$0.99, €0.99 and stg£0.69.

It is thought that any hike to these prices – which, when converted, equate to vastly different sums – will greater increase the disparity between price points.

Apple/money scale image via Shutterstock

Gordon Hunt is a journalist at Siliconrepublic.com

editorial@siliconrepublic.com