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App Store Prices Rise 25 Percent in U.K. Due to Brexit

Apple is planning an iTunes price hike for its U.K. customers to make up for the effect Brexit has had on the pound.

According to a report from The Register, Apple today sent an e-mail to developers explaining the price changes. The increases are anywhere from 79 pence rising to £0.99 to £1.49 apps spiking to £1.99.

The change in prices is to make up for the devaluation of the British pound since the U.K. voted to leave the European Union.

The price hike will also hit customers in India and Turkey due to a service tax rate change.

“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,” Apple told The Register. “These factors vary from region to region and over time.”

News of the price hike comes just a few weeks after Apple announced record-breaking sales for the App Store in 2016, with developers pocketing more than $20 billion, an increase of more than 40 percent from 2015.

The holiday season for 2016 topped $3 billion while New Year’s Day was Apple’s busiest single day ever with $240 million in app purchases.

It is hard to say if the price hikes in the U.K., India and Turkey will decrease app sales in those countries but, if it does become a factor, Apple may not be able to report another record-breaking year for 2017.

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SPN Staff Writers