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Apple to Raise U.K. App Prices to Counter Weak Pound
by
Costs to rise as much as 25 percent for apps and in-app costs
Value of pound has fallen roughly 18 percent since June vote
Apple Inc. is raising App Store prices in the U.K. as much as 25 percent, bending to the pound’s drop in value following the country’s vote to leave the European Union.
Apps that cost 79 pence (98 cents) will increase to 99 pence, according to a notification sent to app developers today, seen by Bloomberg. Apps that costs $2.99 in the U.S., for instance, will now cost 2.99 pounds. Apple told developers the changes will be made in the next seven days.
"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," an Apple spokesman told Bloomberg.
The App Store increase comes after U.K. inflation surged to its fastest pace in more than two years in December, driven by a drop in the pound’s value. Bank of England Governor Mark Carney warned on Monday that inflation could
hurt consumer spending in the country.
This isn’t Apple’s first post-Brexit price increase. The company
previously raised the price of hardware products including the iPhone to account for the currency’s
drop in value . Since the June vote, the pound has fallen roughly 18 percent against the dollar.
The website 9to5Mac.com first reported the price increase.
(Corrects currency conversion in second paragraph.)
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