In a recent development, Apple has announced price hikes for in-app purchases on Apple Store. The price hikes will be implemented in multiple countries in Asia and Europe starting October 5. Specifically, the price hike will take place in the following countries: Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and all territories that use Euro.
We are not yet clear about the reason for this price hike. However, it appears as a move to counter weak local currencies against the Dollar. What’s more, the price hike is not consistent across the countries. On the contrary, it varies from country to country. For instance, the price hike in South Korea is around 20% to 25%. Whereas, the hike in Japan is around 30% to 35%. All the countries in the Euro region will face an 8% to 10% hike.
Apple announced the price hikes just after a week after the report from analytics company Apptopia suggested that developers have raised App Store prices by 40%. The platform cited Apple’s anti-tracking measures as a likely reason.
Last year, in August, Apple raised the in-app purchase price for South African, UK, and Euro users. So, it is effectively the second raise in that many years.
Moreover, Apple has also said that once the new charges are rolled out, developers will see them in the My Apps app section.
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Apple registered a record $19.6 billion service revenue in Q2 2022, including App Store earnings. However, analysts predicted about $19.7 billion in revenue, so the actuals were a bit lower than expected.
Furthermore, countries have their own local rules that might force Apple to let go of some revenue. As the company has to take discounted cuts from developers while using alternative payment systems.
Lastly, Apple is expanding ads to appear more to earn more revenue. As a result, the ads will start showing in more places in the App store like the Today homepage and individual app pages.
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