UK Edition
Apple to raise UK app prices by 25pc after sterling's recent losses
Apple is raising the prices of apps in the UK by 25 per cent after recent falls in the value of the pound in the wake of the Brexit vote.
The change means that an app or in-app purchase that previously cost 79p will now sell for 99p.
The move brings the pound to effective parity with the US dollar when it comes to buying apps, with a 99p app in Britain costing 99 cents in America, although the latter does not include VAT.
It follows higher prices for iPhones, iPads and Mac computers introduced in the second half of last year. The price changes for software do not affect the price of songs, films and TV shows in the iTunes Store.
Since June’s vote to leave the EU, the pound has fallen from more than $1.45 to under $1.22, as Theresa May has suggested the UK will make a clear break from the single market.
App developers do not fully price their own apps but choose one of several price tiers, which Apple applies across the countries it sells apps in.
The first tier is a price of 99 cents in the US, 79p in the UK, €1.09 in the eurozone, and so on. The change, which will take effect in the next week, pushes the UK price of the first tier to 99p.
However, Apple will introduce two new alternative tiers, at 49p and 79p, for developers who do wish to maintain or lower their app prices.
An Apple spokesman 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."
Sales from Apple's App Store rose by 40pc to $28.5bn (£23.5bn) last year. Prices are also set to rise in India and Turkey.
Although the 20p difference may not seem significant, it means that in-app purchases such as the full game of Super Mario Run will rise from £7.99 to £9.99.
Apple, Microsoft and Tesla have all increased the cost of certain products in response to the falling pound. Apple’s new iPhone 7 starts at £599, against £539 for the previous model, while the prices of some laptops were increased by 20 per cent.
Microsoft has raised the price of cloud computing and enterprise software for UK businesses, while Tesla has increased prices by 5pc.