Apple is raising its app store prices due to the weaker pound. The pound has fallen in value in the wake of the Brexit vote as traders sell the currency on each announcement from the British government.
The changes mean that Apple consumers will be paying £0.99 for an app, rather than £0.79.
The increased price puts a British bought app on par with a U.S bought app, although the British price does not include VAT like it does in America.
Brexit Pushing up Prices
In the second half of last year Apple raised the prices of its phones, iPads, and Mac computers, citing Brexit as the reason. Music, TV, and films will not be affected by the app price change.
App developers do not set a price but instead choose a pricing tier. The first tier is $0.99 in the U.S, £0.79 in the UK, and €1.09 in the Eurozone. The change will see first tier pricing for the UK reach £0.99. The changes will come into effect next week.
The fall in sterling has come about since the June Brexit vote to leave the EU. The pound began at $1.45 to the dollar and now sits at $1.22 as Theresa May is believed to be planning to take Britain out of the single market.
App Sales Increased by 40%
A spokesman for Apple said, “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 saw app sales rise by 40% last year. The company made £23.5bn from them. Prices, in India and Turkey are also set to increase despite having nothing to do with Brexit.
Where the cost of the app increase will bite will be for full game purchases. Super Mario Run for example will now cost £9.99 instead of £7.99.