Apple’s iPhone manufacturer It has been announced by Apple that it would be increasing the prices of apps and in-app purchases on the App Store. Several countries, including Japan, Malaysia, Vietnam, and all territories using the euro currency, will see a hike in the price of apps and in-app purchases on the App Store beginning in the next month, Apple announced on Monday.
Apple announced in a blog post that the revised prices would go into effect on October 5 for everything but automatically renewing subscriptions.
Apple Has Announced a Price Hike for Its App Store.
Increases to the prices of apps and in-app purchases (excluding automatically renewed subscriptions) on the App Store will take effect in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and other territories using the euro currency beginning on October 5, 2022.
These price hikes are a result of “new rules for Apple to collect and pay applicable taxes in Vietnam, being value-added tax (VAT) and corporate income tax (CIT) at 5% rates respectively,” as the blog post puts it.
List of Countries Where Prices of Apple Apps Will Increase
- Pakistan \sPoland
- South Korea
All Territories that Use the Euro Currency
After the adjustments take effect, the My Apps page’s Pricing and Availability section will be updated to reflect the new circumstances. According to Apple, developers can modify the prices of their apps and in-app purchases, including subscriptions that automatically renew, at any time via App Store Connect.
Apple claims it will use the developer’s “tax-exclusive price” in determining the developer’s take. If necessary, it will make the necessary adjustments.
What Will Change?
Apple has stated that it will modify the developer’s earnings to reflect the tax-exclusive price. Apple has announced on its developer website that it will revise Exhibit B of the Paid Applications Agreement to reflect the fact that it collects and remits taxes in Vietnam.
After the new pricing has been implemented on the App Store in the aforementioned countries, the Pricing, and Availability section of My Apps will be changed.
Apps and in-app purchases can be re-priced at any time by the developer. App Store Connect allows for subscriptions to renew automatically at any time. It won’t be long until you see the new prices taking effect.
App makers can “preserve rates for existing subscribers,” Apple added. In other words, the price increase will not apply to automatically renewed memberships.
The updates arrive as Apple is working to increase the breadth of its software offerings. Apple’s App Store is a significant contributor to the company’s bottom line. Statista predicts that the company will make $85.1 billion in 2021 from in-app purchases in the United States alone. In 2021, it distributed $60 billion to developers from this sum.