iPhone App Store Prices Increase in the UK Due to Brexit
Apple has increased the prices of content on its iOS App Store in the UK, continuing the company’s trend of bumping up the value of its hardware and software following the EU referendum.
Apple has revealed that the price of every app and game on the UK App Store will match its US pricing, meaning that an app worth $0.99 will now costs 99p. Previously the same app would have cost 79p, Apple has reevaluated much of its products in the wake of Brexit, with it hiking up its prices across the board for the UK due to the decline of the Pound Sterling. The App Store is the latest of its services to take a hit, with its prices being raised by almost 25% as the ramifications of the UK’s historic decision continue to cause economic problems.
The tech giant made the announcement to developers in an email today, with the company expected to make similar changes to iTunes and the iBooks Store in the near future. A statement from the company reads: “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.”
Apple previously laid out a barrage of post-Brexit price increases, which included its high-end model of the Mac Pro jumping £600 from £3299 to £3899. The impact of Brexit has resulted in the pound dropping in value compared to the dollar, with UK Prime Minister Theresa May’s announcement today that the region will adopt a “hard Brexit” that will see them pulling out of the single market likely leading to a greater decline in the future. Though supporters of leaving the UK have claimed that the economy will eventually recover, it’s unclear how long this would take, and plans surrounding the exiting of the EU have been vague.
Apple is but one of a number of tech companies to have been forced to increase their prices as a result of Brexit. Back in October, Microsoft announced that the prices of its software would increase by 13% while its cloud services increased by 22%. The OnePlus 3 was also increased by £20 in the region, Dell increased its laptops by 10% across the board and the HTC Vive was bumped up to £759. The tech sector also warned pre-Brexit that such a decision would have a negative impact upon hiring talent from across different countries, thus slowing down the industry’s growth in the UK and leading to a loss of jobs as a result.