Apple to raise App Store prices in EU and Canada, 'change' Russian fees
In a note sent out to iTunes Connect members on Wednesday, Apple announced an imminent prices increase for Canada, Norway and all countries in the European Union, as well as an undisclosed change in app cost for Russian customers.
According to the notification sent out by Apple's App Store team, provided to AppleInsider by reader Gregg, prices on the company's digital storefront will be increased in the EU, Canada, and Norway, while customers in Iceland are set to see a decrease. Russia will also receive price changes, though Apple failed to provide detail on the matter. Modifications will take effect within 36 hours, the note said.
Apple is making the adjustments to account for localized value-added tax (VAT) changes and foreign exchange rates. While not specifically mentioned in the letter, Apple could be acclimating App Store prices to recent currency fluctuations, while at the same time buffering against what is expected to be a volatile month for the euro.
As for Russia's impending "change," it's not clear what to expect, though an unstable ruble did cause Apple to suspend online hardware sales last month. When operations resumed six days later, prices for popular items like the iPhone and iPad reflected major hikes of up to 35 percent.
AppleInsider reported in December that Apple would shift its App Store price model away from a flat rate for EU locales on Jan. 1, meaning customers now have to pay fees based on their country of residence.
According to the notification sent out by Apple's App Store team, provided to AppleInsider by reader Gregg, prices on the company's digital storefront will be increased in the EU, Canada, and Norway, while customers in Iceland are set to see a decrease. Russia will also receive price changes, though Apple failed to provide detail on the matter. Modifications will take effect within 36 hours, the note said.
Apple is making the adjustments to account for localized value-added tax (VAT) changes and foreign exchange rates. While not specifically mentioned in the letter, Apple could be acclimating App Store prices to recent currency fluctuations, while at the same time buffering against what is expected to be a volatile month for the euro.
As for Russia's impending "change," it's not clear what to expect, though an unstable ruble did cause Apple to suspend online hardware sales last month. When operations resumed six days later, prices for popular items like the iPhone and iPad reflected major hikes of up to 35 percent.
AppleInsider reported in December that Apple would shift its App Store price model away from a flat rate for EU locales on Jan. 1, meaning customers now have to pay fees based on their country of residence.
Comments
Europeans have to pay for all those "free" services somehow.
If the price change is purely based on VAT, some countries will see a rise, and some should see a fall (though I doubt that'd happen, Apple would absorb the extra profit no doubt). If it's due to the failing Euro, then the UK should be relatively insulated from price rises, since Sterling is quite strong vs the euro.
Which services?
son-of-a-bitch! With our lousy loonie, I guess it couldn't last forever
Australia will be next on the chopping block. Our dollar was worth $US 0.91 three months ago and now it's only worth $US 0.81.
I'm the biggest Apple fan and I own way too many of their products but this is an outrage. We Canadians already pay more for the hardware and now they want to gouge us for ecosystem-locked software. At least with OS X you can purchase software outside of the App Store but with iOS you are out of luck. I'm very disappointed in Apple.
Welcome to the global economy.
I wonder what'll happen for UK prices, since the VAT rate of Luxembourg where iTunes is based is 20%, same as the UK.
If the price change is purely based on VAT, some countries will see a rise, and some should see a fall (though I doubt that'd happen, Apple would absorb the extra profit no doubt). If it's due to the failing Euro, then the UK should be relatively insulated from price rises, since Sterling is quite strong vs the euro.
The note from Apple stated that it will decrease in Iceland.
And how about your Terrible Tooney?
So stop whining and work to make your economy better.
Or get on the ‘join the Union’ bandwagon for which some of your peers petition. We’d LOVE to have you.
Either way, keep the FUD to yourself.
Thanks, Harper! (Obama can't get ALL of the credit, after all)
Football Manager Handheld 2015 has increased from £6.99 to £9.19. That's a lot more than VAT added on top.
I understand global economics, thank you very much. However, when our Canadian dollar was at par with the US dollar, Apple did not LOWER prices to accommodate this change. This is not economics, It's a money grab plain and simple. What could (should) happen is that Canadians will make fewer purchases since prices will be driven up which, if we're paying attention to the principles of economics, should lower prices. Time will tell.