Apple announced a price increase for software and in-app purchases on its App Store beginning next month. The change applies to the entire eurozone and several Asian and South American countries.
The tech giant regularly changes its prices in different locations. Prices for eurozone countries dropped last year to account for currency and taxes, lowering starting rates for many applications from €1.09 euros to 99 cents
The most recent price hike raises those initial costs to €1.19. The new costs, excluding auto-renewable memberships, will go into effect on October 5, according to an Apple blog post.
Apart from the eurozone, price hikes will affect Japan, Malaysia, Pakistan, South Korea, Vietnam and Chile. According to Apple, the price rise was prompted by legislation changes regarding consumer taxes in some countries, including Vietnam.
Apple unveiled its next iPhone generation earlier this month and has expanded its services business to minimize reliance on devices. Apple’s services sector, including the App Store, has grown rapidly in recent years, with current revenue hovering at about $20 billion per quarter.
Developers can choose to keep prices the same
The Pricing and Availability section of My Apps will be updated when the changes take effect. Developers can adjust the pricing of their applications, in-app purchases and auto-renewable subscriptions at any moment through App Store Connect. Developers that provide subscriptions can decide to keep existing subscribers’ fees the same.
The App Store is a significant source of revenue for Apple. The tech giant reported services revenue that fell just short of expectations for the quarter that ended in June.
According to an independent analysis by Apptopia, app developers have already increased their costs in the last year. In July, the average price of in-app purchases jumped by 40 percent compared to the same month in 2021.