Apple will be increasing the prices of apps and in-app purchases from the App Store in UK, India, and Turkey. As per reports, Apple will charge Rs 80 for every $0.99 app purchase as compared to earlier price charge of Rs 60. This is nearly a 33 per cent increase for each dollar pricing in the App store purchases.
Apple in a press statement stated,” 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. These factors vary from region to region and over time.”
According to 9to5Mac, Apple first confirmed the news app prices increase through an email
to the developers. The company in its email said it will raise the lowest app price from £0.79 to £0.99. As per the report, the price hike will roll out to the App Store over the next seven days. Besides iOS and Mac App Store, the price change will likely hit iTunes Store suggesting the digital content such as TV shows, movies will become more expensive in India.
The app prices in UK rises up to 25 per cent with charges increasing from GBP 0.79 to GBP 0.99 for every $0.99 app purchase. With Turkey affected by the new price slabs as well, the country faces an increase of TRY 3.49 per dollar compared to TRY 2.49 charged earlier.
As of price hike in India, Apple in December last year announced that the company would be charging a service tax rate 14 per cent along with additional tax of 0.5 % for Krishi Kalyan Cess (KKC) and Swach Bharat Cess (SBC) for apps and in-app purchases, effective December 1.
The company in a report said,” We will be administering the collection of the taxes from customers and the remittance of taxes to the appropriate tax authority.” The additional charges along with changes in tax laws in the country could likely be the reason of price increase in the App Store.