According to a report from Bloomberg, Apple announced a sharp increase in the price for its app and in-app procurement from Asia and Europe to maintain its returns as the value of the currencies hits a low in relation to the US dollar.
From October 5th, the customers using Euro and people from countries like Vietnam, Japan, South Korea, Malaysia, Sweden, Chile, Pakistan, and Egypt will be facing the price rise. The company informed its developers through the message.
Apple stated the price rise in Vietnam is in reflection of the new local tax collection policy but did not elucidate on the hike in other countries. Bloomberg states the reason may be the tough dollar. In Japan, the price rise is about 30% which is significant with the yen declining this year.
Apple increased its prices across all its products; Mac, iPad, and iPhone due to the ongoing inconsistency in the currency. It is similar to the event with the Euro which is presently trending close to the US dollar.
Bloomberg conducted an independent study that showed that the app developers had already increased the price last year. According to consulting firm Apptopia, the in-app purchases increased by 40% on an average in July in comparison to 2021 July.
Apple states that with the new framework, developers will maintain the current cost of the subscription services. California-based business Cupertino depends on the app store for its source of income. iPhone 14 was sold globally this month, the company states that the quarterly revenue missed any projections.
Analysts were stunned that there was no price rise for the iPhone 14 as they had presumed that the inflationary pressure would make them do so. A16, Apple’s new processor is not supported by the primary level iPhone that is priced at $799 but in pro variants and it uses the A15 chip.
In an interview with Bloomberg Television’s Emily Chang, Tim Cook, Apple CEO noted that the economy was inactive but foresees that it would rebound in the fourth quarter with iPhone 14 and other products.