Apple Announces Major Price Hikes For In-App Purchases On App Store

According to the latest reports, Apple has announced that it is raising prices on the App store. The bad part of the news is that the silicon giant has announced major price hikes for in-app purchases on App Store in multiple countries across Asia and Europe from October 5. The company even said that the new prices will affect consumers in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and all territories that use Euro as currency.

Increased Prices For In-App Purchases On App Store Will Affect Many consumers

The point worth mentioning here is that the firm didn’t specify the reason behind this, however, it is likely to counter weak local currencies against the dollar. We all know that the percentage hike varies across regions. For instance, prices in South Korea have been hiked by 20-25%, they have been raised by 30-35% in Japan, and in regions that use Euro, the hike is around 8-10%. So, it may vary based on different tiers, though.

Apple’s announcement came a week after a report from analytics company Apptopia, which noted that developers have raised App Store prices by 40% year-on-year citing Apple’s anti-tracking measures as a reason. The silicon giant increased the in-app purchase price for users in South Africa, the UK, and all regions using Euro in August 2021. So, it’s the second raise in two years for many European users.

According to the reports, the silicon giant registered a record $19.6 billion service revenue in Q2 2022 that includes App Store earnings with an almost 12% year-on-year increase. However, it also fell marginally short of analyst expectations of $19.7 billion. So, in order to earn more revenue from App Store, the company is also expanding ads to appear in more places in the App Store like the ‘Today’ homepage and individual app pages.

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