Inflation Hits the App Store: Apple to Raise Prices Outside US Next Month

Inflation Hits the App Store: Apple to Raise Prices Outside US Next Month

Apple plans to increase the price to purchase apps, in-app items and subscriptions for iPhone and iPad owners in response to international currency fluctuations and inflation.

The move will impact Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam and all places that use the euro — in other words, most of Europe — according to Apple. The App Store in the US was not mentioned in Apple’s note to developers late Monday.

In its note, Apple said the changes will go into effect automatically in early October. As an example, the price of an app that costs 0.99 euro will rise to 1.19 euros. (That’s the equivalent of a 99 cent app jumping to $1.19.)

In Vietnam specifically, Apple said, it is increasing prices in response to new tax rules. “Your proceeds will be adjusted accordingly,” Apple told developers.

Apple said the changes won’t impact automatic subscription renewals, though it added that developers can choose to preserve existing prices for existing customers or raise them to reflect the new amounts.

The price changes by Apple mark the latest sign of economic uncertainty amid rising inflation around the world, caused in part by soaring energy prices amid Russia’s war on Ukraine. Many countries have responded to increased prices by instituting higher interest rates, designed to slow borrowing and purchases. Prices theoretically will drop when buying slows.

Currencies around the world have fluctuated amid all this economic turmoil as well. The euro, for example, has dropped in relation to the US dollar — 1 euro currently converts to $1 — as has the value of other countries’ currencies. 

Apple occasionally adjusts App Store prices, though this time it’s happening both during a time of economic uncertainty and as the tech giant is releasing its latest phones. The brand-new iPhone 14 starts at $799, and the iPhone 14 Pro starts at $999. Apple has largely kept prices for those products in line with last year’s prices. Apple is also releasing its new Apple Watch Ultra this week, a wearable designed for extreme sports that costs $799 — about twice the price of its new Apple Watch Series 8.

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