Apple will increase the macOS and iOS app and in-app purchase prices up to 30% in Euroland, Japan, South Korea… in October
In the past few weeks/months, prices have been raised in every area. The music technology world was also hit hard and certain synthesizers became more than 40% more expensive. Nobody knows where this will end.
It has recently become known that Apple will also massively increase the price structure for apps and in-app purchases in October.
Apple Will Raises App Prices
Before questions arise. Yes, every developer can charge as much as they want for their app or in-app purchase. Regardless of whether it is 0.99, 1.99, or 15.99 for an app, developers are free in their pricing, but not completely.
Developers who want to sell an app have to set the price according to a price tier that applies to every country that their app is available. And here Apple has adjusted the prices. In Euroland (Germany, France, Austria, France, Luxembourg…) prices go up 20%, in Japan even 30%.
For those in the Euroland, apps and in-app purchases priced at 0,99€ will now cost 1,19€. Or a synth app that costs 9,99€ will have its price increased to 11,99€. This is due to VAT tax collections and other reasons.
Good, according to Apple, developers can keep the subscription prices for current subscribers if they want to. Musicians who are interested in buying a Logic Pro version and live in one of the affected countries should probably consider this now. The price of the DAW will probably raise in October.
Official Apple Statement
As early as October 5, 2022, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and all territories that use the euro currency. In Vietnam, these increases also reflect new regulations for Apple to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively.
Your proceeds will be adjusted accordingly and will be calculated based on the tax-exclusive price. Exhibit B of the Paid Applications Agreement will be updated to indicate that Apple collects and remits applicable taxes in Vietnam.
Once these changes go into effect, the Pricing and Availability section of My Apps will be updated. You can change the price of your apps and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect. If you offer subscriptions, you can choose to preserve prices for existing subscribers.
Not good news for iOS musicians. But it’s a step that was to be expected. Everything is getting more expensive and it was certain that the apps would not be spared. In this case, it’s due to VAT adjustments and other legal reasons.
The upcoming price and tax changes for apps and in-app purchases will come into effect on October 5, 2022.
More information here: Apple
WTF! Software isn’t affected by the component shortage, WTF Apple, just using the current hardware shortages for a chance to rip off its customers. They dont even produce the software in the App Store! No other software companies have done this… despicable company! No more Apple hardware for me.
Fred,
The article is a little bit misleading. If you read the first paragraph of Apple’s quoted statement, it only affects purchases using the euro currency. This has to do with mandatory VAT tax collections, not chip shortages or inflation or anything like that. It’s not a money grab, unless you consider taxes on euro currency purchases a money grab. Apple is only passing along the euro tax hike to the consumer, where it belongs anyways. If you need to get angry with anybody, go after the country you are in that uses the Euro currency.
It was not misleading. I didn’t write that Apple wants to make 30% more benefit. The original statement is included where every info is included. However, I added some info to make it more clear. Cheers
Tony.
This is not only for euro currency as I see it.
I live in Norway, (we don’t have Euro), and suddenly a app that I’m using for free (TuneIn Radio), has increased from 69 nkr a month, to 109 nkr.