AppleInsider Staff
Apple's previously announced App Store price adjustments took effect on schedule on Friday, representing a slight increase in the minimum possible price for applications in the European Union, the U.K., Canada and Norway.
The company had alerted developers on Wednesday that the changes would take effect within 36 hours. The adjustments account for localized value-added tax changes and foreign exchange rates.
As a result of the changes, the minimum app price in Canada is now $1.19, £0.79 in the U.K., and €0.99 in the E.U. Similar increases are expected in Norway and Russia, while prices are set to see a decrease in Iceland.
AppleInsiderreported in December that Apple would shift its App Store price model away from a flat rate for EU locales on Jan. 1, meaning customers now have to pay fees based on their country of residence.
The pricing adjustments come a day after Apple touted the success of the iOS App Store after a record breaking 2014 and blockbuster start to the new year. More than $10 billion in revenue was paid to developers last year, representing a 50 percent increase in digital billings.
William Gallagher
Christine McKee
Chip Loder
Malcolm Owen
68 Comments
Good, otherwise devs would have taken a hit fairly badly with VAT etc.
Absolutely unjustifiable price increase in the UK, the VAT Rate in Luxembourg now stands at 17%, UK rate is 20%. The difference between the old Luxembourg VAT rate and the UK was just 3p yet apple increase the price by 10p.
Apple rips off the Brits once again! Shameless
[quote name="saarek" url="/t/184242/minimum-ios-app-store-price-rises-to-1-19-in-canada-0-79-in-the-uk-and-0-99-in-the-eu#post_2659370"]Absolutely unjustifiable price increase in the UK, the VAT Rate remains the same as Luxembourg and the $ vs £ is still at $1.5 to the £. Apple rips off the Brits once again! [/quote] So move.
Apple rips off the Brits once again! Shameless
So move.
In
beforeafter the fighting starts. I would just like to note that setting worldwide prices can't be simple. These comments that follow could be an opportunity to share proposals for how a multi-national like Apple might handle things. Price/exchange stability is in the interest of consumers but in a changing world, how can this ever remain. Price rises are going to make people upset. What's better is to understand why it's happening so you're better prepared next time.Absolutely unjustifiable price increase in the UK, the VAT Rate in Luxembourg now stands at 17%, UK rate is 20%. The difference between the old Luxembourg VAT rate and the UK was just 3p yet apple increase the price by 10p.
Apple rips off the Brits once again! Shameless
Christ. The British press was going crazy about the older VAT rate and now this. Here is Luxembourgs actual rates for this year ( from http://www.meridianglobalservices.com/blog/2014/04/02/Luxembourg-VAT-will-increase-by-2-in-2015)
The following changes will apply:
· The standard rate of VAT will rise from 15% to 17%.
· The reduced rates of VAT will rise from 12% to 14% and from 6% to 8%.
The super reduced rate (relates to basic commodities) and 3% (applies to hotel and catering industry) rate remain unchanged.
So the increase was at a minimum from 15% to 20%. Last years luxembourg to this years UK VAT rate for UK consumers.
Except thats not true either because Apple was accused, before, of not paying enough VAT in the UK and using Luxembourg as a lower haven, so the reduced rate probably applied.
In any case prices should rise every so often due to inflation etc.
EDIT:
Apparently the 3% super reduced rate applied to books, including eBooks.