Posted on January 17, 2017 by staff

Apple app prices surge 25 per cent following Brexit vote


The price of iPhone and iPad apps is going up in the UK following the Brexit vote, as Apple numerically matches them to US figures.

It means an application in the app store which costs $0.99 on the other side of the Atlantic will cost £0.99 over in Britain.

This represents a 25 per cent price rise over the previous conversion, which was £0.79.

The decision reflects the sharp depreciation of the pound (almost 19 per cent) since the result of the EU Referendum last year.

In an email to app developers, Apple said: “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.”

The change will be rolled out over the next seven days, and also affects India and Turkey.

It is not the first time Apple has reacted to Brexit.

In October last year, new Macs received a 20 per cent price rise, and the cost of a Mac Pro jumped by £500.

Similar price increases are expected to hit other Apple stores, including the iTunes Store for music and video and the iBooks Store.

In order to mitigate the impact, new lower price tiers will be introduced – for 49p and 79p. But sellers will need to re-price their products.

The dollar currently traces for 82p, but the price increase incorporates a 20 per cent sales tax.

Stores in the US, state taxes are not included in the price advertised at point of sale.