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Are you an avid App Store user? If so, you can expect to see an increase in prices in the countries of Brazil, New Zealand, and Turkey in the following days. This is due to Apple’s method of regulating App Store prices to reflect changes in currencies throughout the world. To understand how these changes have the potential to affect you, read on.
When navigating Apple’s App Store, users scroll through apps with various price tags, such as $0.99 or $1.99. This is because Apple allows app developers to set the price of their product in one of ninety-four price tiers, ranging from $0.99 to $999.99. Due to the App Store functioning on the basis of price tiers instead of actual prices, the cost varies per region, as a Canadian user would pay $1.19 CAD for an app that’s $0.99 USD, and so on. This makes selling apps around the world easier, as the App Store operates in a multitude of countries throughout the world.
Though the price tiers for different currencies are as equal as they can be, currency value fluctuates every day. The majority of the time, these fluctuations aren’t substantial enough to force a change in price tiers. If they persist for a long enough period, Apple will institute modifications to the existing pricing options. For example, following the Brexit vote to leave the European Union, Apple raised prices on the App Store a stunning 25 percent.
Apple’s App Store has used this method for raising prices multiple times throughout its history, and will continue to do so in the coming days when it increases prices on the Brazil, New Zealand, and Turkey App Stores, respectively. In the case of Brazil, this shift can be attributed to last week’s presidential race following the election of far-right leader Jair Bolsonaro, which is expected to have significant, negative implications for the country’s economy.
So, if you’re an App Store user in one of these regions, expect an increase in the prices of apps, in-app purchases, and auto-renewable subscriptions very, very soon.