Blaming problems caused by inflation, Apple is set to price out all apps in the App Store catalogue, with European users particularly affected.
The inconvenience caused mainly by inflation is felt in most parts of the world, with the use of the Euro as a reference currency in no way denying the profitability of transactions. It all stems from the way in which the value of payment has been reported for years in the Euro-dollar, with the ratio always positioned in favour of the Euro resolving by itself any differences associated with import duties, or other hidden costs.
The list of affected regions includes countries such as Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, as well as any other territory where the Euro is used
There is no official explanation for why Apple will increase App Store prices in these countries, but this is likely related to the drop in the exchange rate of local currencies against the dollar. For example, the euro has now reached parity with the dollar, which has never happened in the last 20 years. Thus, products delivered by US companies have become more expensive overnight, with import duties suddenly becoming relevant in the calculation of the final price.
Apparently, the price hikes in Vietnam were due to new local tax regulations.
As of October 5, 2022, prices for apps and in-app purchases (excluding auto-renewing subscriptions) in the App Store will increase in Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, Vietnam, and all territories that use the euro currency. In Vietnam, these increases also reflect new regulations for Apple to collect and remit local taxes, taking into account issues such as VAT and local tax.
Thus, for buyers in Europe, in-app purchases priced at EUR 0.99 will now cost EUR 1.19. In other words, an app that costs EUR 9.99 will have its price increased to EUR 11.99. Apple reminds developers that the new AppStore prices will take effect on 5 October 2022. Developers can keep subscription prices for current subscribers if they wish.