Apple is preparing to increase the price of apps in the UK in its latest move to counteract the impact of Brexit on its business.
The iPhone-maker raised the prices of its hardware in the UK in October in order to offset the depreciating value of the British Pound against the U.S. Dollar, and now it is doing the same for the App Store. Apple contacted iOS developers this week to forewarn them of a new cost structure that will raise the price of apps and in-app purchases by around 25 percent in the UK, as first noted by MacRumors.
The changes are due to come into effect in the next seven days. Once implemented, an app that sells at the lowest price tier ($0.99 in the U.S.) will increase from £0.79 to £0.99 in the UK. The next price level will be bumped up from £1.49 to £1.99, and so on. Ongoing subscriptions will remain unaffected by these changes, however.
£1 is currently worth around $1.22, but that rate was as high $1.49 in June before the UK voted to leave the EU in an historic referendum. That’s a loss of around 20 percent.
UK-based Apple customers aren’t the only ones facing an app price hike. Apple has also made price increases to the App Store in India, Romania and Russia on account of changing tax rates and additional charges.
Apple isn’t the only company adjusting the financial repercussions of Brexit. HTC repriced its Vive VR headset post-Brexit, while startup founders, investors and the general tech community are divided and unsure on the implications of a EU withdrawal. That’s right, it is easy to forget that the UK is still part of the EU right now, so that plunging exchange rate might only just be the beginning once Britain triggers Article 50 to formally leave. That’s scheduled to happen before April, according to UK Prime Minister Teresa May.