In coming hours, AppStore users will notice an increase in app prices. Apple has started notifying developers that it will increase App Store prices in select regions. The change is app prices in due to recent fluctuation in currency exchange rates.
The raise in app prices will be rolled out in next 72 hours which will also affect in-app purchase. Regions affected by the price change are: Canada, Israel, Mexico, New Zealand, Russia, Singapore and South Africa.
Current active subscriptions will continue uninterrupted. If a user has subscriptions that renew automatically, Apple will inform them about the increase in price via email when a subscription is about to be renewed. Users in Russia and South Africa will have to renew their subscriptions manually at new rates after their subscription expires.
Apple introducing low price tiers in Canada and New Zealand
As 9to5Mac reports, Apple is introducing low price tiers in Canadian and New Zealand markets. Known as Alternate Price Tier A and Alternate Prier Tier B, these low price tiers offer alternate price increments for developers and are useful for smaller items like In-App Purchases. Alternate low price tiers are usually introduced in developing markets at ‘extremely cheap’ rates, often as low as $0.20 USD when converted. Although it is not expected that Canada and New Zealand will see such low rates.
The Romanian app store will not see any change in app prices but developers will start seeing increase in their profit thanks to reduced VAT (Value Added Tax) rates. VAT rates are being reduced from 24% to 20% in Romania.
Change in app prices is a usual practice when fluctuations in exchange rates occur.