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January 17, 2017

Apple cashes in on Brexit with App Store price hike

25% price rise introduces parity between the dollar and the pound.

By James Nunns

Get ready to shell out more money for those time-killing apps on the Apple Store because the company is putting up its prices.

The price change will affect the Stores in the UK, India, and Turkey, with the UK costs numerically matching those in the US.

That means that an app which costs $0.99 will now be 99p instead of 79p, which it was previously.

The 25% rise has been attributed to factors such as currency exchange rates, business practices, taxes and the cost of business, the company said.

The change will also impact in-app purchases but not subscription charges.

The increase comes at a time when the value of Sterling has slipped to a 30 year low on the back of the Brexit referendum result.

Apple is far from the only tech company to have put up its prices on the back of the pound’s decline against the dollar.

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Last year Microsoft revealed that it would put up its prices by 22% for some of its software and cloud services, with a 13% increase for enterprise software products and 22% for cloud.

HP raised the prices of its devices by 10% in the UK, with the company citing it as a means to “maintain a sustainable and consistent approach to our operation in the UK and Ireland. Dell is another big name to have put up its prices.

This isn’t the first time Apple has put up its prices in the UK. Last year it increased the cost of some of its UK products by as much as 20%. The price for a Mac Pro rose from £2,499 to £2,999.

The company has decided to help mitigate the impact of its price rise by introducing new lower-price tiers. This means that publishers of apps will be able to charge users 49p or 79p for purchases, but they will have to re-price their products to do so.

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