Commentary

Why Apple Is Raising App Prices In UK

In the UK and other markets, Apple plans to raise the price of apps in the App Store.

While the change also affects India and Turkey, the chief culprit of the 25% bump is believed to be Brexit, and the resulting devaluation of the pound.

“Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates, business practices, taxes, and the cost of doing business,” an Apple spokesperson tells BBC News.

In an effort to offset a likely decline in app sales, Apple is adding lower-price tiers to the App Store.

Regardless, the change will inevitably peeve many developers. Fortunately, Apple has recently been making them a ton of money.

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Last year, App Store developers earned over $20 billion -- up more than 40% from 2015 -- according to recent figures from Apple.

That brought the total amount that developers have earned since the App Store’s debut in 2008 to around $60 billion.

This past holiday season, customers broke all-time records with purchases from the App Store surpassing $3 billion in December.

In the same month, Nintendo’s Super Mario Run made history with more than 40 million downloads in just four days after its release -- making it the most downloaded app globally on Christmas and New Year’s Day.

Worldwide, Super Mario Run is among last year’s Top 10 most downloaded apps, with Pokémon Go taking the top spot.

While China experienced record year-over-year growth of 90%, the United States remains the App Store’s top growing market.

Of note, the App Store now offers 2.2 million apps -- up more than 20%, year-over-year.

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