Apple will increase the price of apps and in-app purchases on the App Store

The report is just in and what we have learned from it is that Apple, the multinational technology company is planning to increase the price of apps and in-app purchases on the App Store.

While this move will be put to effect globally, it looks like India will face the highest rise in app prices. This may be due to the exchange rates and taxation policies in India. As such, the price hike will affect in-app purchases, but not subscription charges.

As per the reports, Apple will now charge Rs. 80 for every $0.99 app purchase, instead of Rs. 60. According to calculations, this is a 33 percent hike in the price of App Store purchases and it's the highest among all the countries. On the contrary, other countries are seeing a less percent hike in prices.

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However, Apple has also announced a lower denomination pricing for apps in order to compensate for the price increase. Developers will be able to charge users GBP 0.49 and GBP 0.79 for app purchases respectively. But, the app developers might refrain from reducing their prices.

When asked Apple about the price hike, the company has stated that price tiers on the App Store have been set internationally on the basis of several factors, including currency exchange rates, business practices, taxes, and the cost of doing business.

If you recall, Apple had announced earlier in December that the company would charge service tax rate of 14 percent along with additional levies of 0.5 percent for Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC) for apps and in-app purchases bought by Indian consumers. Well, if you consider these additional charges, apart from the drop in the value Indian rupee, the 33 percent hike in App Store prices in India seems justifiable.

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According to 9to5Mac, developers have been notified of the price hike for the iOS App Store and Mac App Store. The price change will reflect in the iTunes Store as well and all the digital content may soon get more expensive in India. The new prices are expected to be rolled out in all regions over the next seven days.

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