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Apple raises prices for apps in UK, Turkey and India

By Sam Edem
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Apple has announced increases in its price tags for apps in the UK, India and Turkey.

The UK costs are expected to numerically match those of the US, hence a $0.99 program will now be 99p representing a 25% rise as compared to previous currency conversion value of 79p.

The US technology giant disclosed that "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". Adding that "These factors vary from region to region and over time."

Apple had earlier in September last year made changes to its product prices in the UK, including those of its iPhones, iPads and later its Mac computers.

In a bid to cushion a possible adverse effect of this latest increase, the company is launching a new lower-price tiers. The package is expected to provide publishers the right to charge users 49p or 79p for purchases on the condition of having their products re-priced.

Reacting to the Apple’s strategy, Ben Dodson, an app consultant and developer of Music Tracker said he doesn’t "think many publishers will respond to that change".  Adding that "It's just throwing money away and there's no reason to give people in the UK a discount. I won't be discounting my own apps."

Apple’s price quoted in its UK app store includes the 20% VAT sales tax, unlike the US where state sales taxes are not inclusive in advertised prices but rather added at the point of sale.

Defending this position, IHS Technology consultancy’s, Ian Fogg said, "It was certainly inevitable that Apple would change the price point for apps in the App Store to reflect currency changes".

He further noted that "this is a normal part of the way the store works because it does not have dynamically changing prices that would change gradually".

In India, the cost of a $0.99 app will become 80 rupees, a staggering 33% raise from its previous 60 rupees. In its Turkish counterpart, it will equally rise from 2.69 to 3.49 lira representing a 30% increase.

As expected, many believe this is just another example of preparations by global industry players in the UK market ahead of an imminent Brexit.