Lately, the currencies have been weakening against the US dollar, which has led the Cupertino company to make decisions about its App Store. Starting next month, Apple will raise App Store prices across Europe and in select Asian markets. This decision affects all countries using the euro including Sweden, South Korea, Chile, Egypt, Malaysia, Pakistan, Vietnam and Japan.
Soon, in-app purchases and regular apps on the App Store will change prices in these countries. Note that these price changes come after Apple increased the price of its new models including the iPhone range and the Watch Series 8. From a geopolitical point of view, it is because of economic inflation and the rising cost of energy.
The US dollar dominates the market
It looks like the euro has fallen to its lowest level in two decades this year and has now been lagging around parity with the dollar for weeks. Apart from Montenegro, the euro markets will see the base price of the application increase from €0.99 to €1.19 from October, a jump of 20%.
As for Japan, the yen is falling to an even lower level against the US dollar, so Apple has decided to increase the price of the App Store there by more than 30%. On the other hand, concerning certain countries such as Vietnam, the price increase is due to new regulations relating to the collection of taxes from consumers.
Apple tries to recover
It should be noted that the App Store is an important source of revenue for Apple. And in the company’s latest quarterly update, the App Store’s financial performance fell short of expectations. Tim Cook, Apple’s CEO, even acknowledged that the company was facing some weakness as well as a slowing economy.
So, these pricing changes are part of Apple’s move to boost revenue in the fourth quarter of 2022. “Today” home and individual app pages.