Last week, Apple announced a price hike for apps and in-app purchases in a few countries on the App Store. The countries that would see that change include India, UK and Turkey. While the other countries began to see the change last week itself, the Indian app store was yet to make the price hike live. However, this weekend, the iOS apps got dearer in the Indian app store and the Mac App Store too, by 33 percent. In India, an app that costs $0.99 will cost Rs 80, representing a 33 percent rise from the previous price of Rs 60. Similarly, a $1.99 app will now cost Rs 160 instead of the earlier Rs 120 pricing. Also Read - Apple iPhone 12 was the best selling smartphone in January: CounterpointAlso Read - Apple likely testing search tags to enhance popular search results
However, the price of the apps that fall under the Alternate Tier A and Tier B category in India, will remain unchanged. The Alternate Tier is essentially special low prices for select markets. Which means, that a $0.99 app that falls under the Alternate Tier A, will continue to be priced at Rs 10 as earlier. Similarly, under Alternate Tier B a $0.99 app will still cost Rs 30. The point being, that despite the price hike by 33 percent, some paid apps in the Indian app store will still cost just Rs 10. Also Read - iMessage on Android will hurt Apple, says Epic Games in latest court filing
The Alternate tier pricing was first introduced in India back in 2015. Apple had introduced two low-cost pricing tiers Alternate Tier A and Alternate Tier B. These pricing tiers were introduced in countries like India, Indonesia, Mexico, Russia, South Africa, and Turkey. Using these tiers developers can price their apps and in-app purchases lower than before, which was a minimum of Rs 60 for a $0.99 app. ALSO READ: Apple to hike price of iOS apps in India by 33%
It is important to understand that the products on the Apple App Store are priced depending upon the exchange rate, and are calculated against the US Dollar. Price tiers on the App Store are set internationally on the basic of factors including currency exchange rates, business practices, taxes and cost of doing business. These factors vary from region to region and over time, said Apple. Now, following Brexit, the UK App Store priced also had to be updated, and the changes will be seen at every price tier. According reports, app price in the UK store shot up to over 25 percent. For instance, an app sold at $0.99 in the US will now cost 0.99 in the UK, up from 0.79.
Following Brexit, many technology companies with a global presence witnessed the repercussions of the move. Other than Apple, companies including Microsoft, Dell, Tesla, and HP have also increased the price of their products in the UK. Just late last week, HP announced a hike in price of its products by three-five percent across categories in the Indian market.
HP is increasing the list price of its products in India. As a standard business practice, the company regularly reviews pricing and makes adjustments accordingly, based on a variety of factors including currency movement and commodities prices. Actual price increases will vary by product, Rajiv Srivastava, Managing Director, HP India, said.
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