Customers in countries that use the euro, as well as those in Sweden, Japan, South Korea, Chile, Egypt, Malaysia, Pakistan, and Vietnam will see price increases starting October 5the company said in a message to developers. The move in Vietnam also reflects new local regulations on tax collection, Apple said, without explaining why it is raising prices elsewhere.
The strong dollar could be a key factor. In Japan, prices are up about 30%, a significant increase following the large weakening of the yen this year. A few months ago, Apple raised prices on its Mac, iPhone and iPad ranges to account for the currency disparity. The euro has suffered a similar fate, now trading near par against the US dollar and showing signs of further weakness ahead.
App developers have already raised prices last year, an independent study has revealed. The average price of in-app purchases rose 40% in July compared to the same month in 2021, consultancy Apptopia estimated. Apple’s new framework will allow developers to keep existing subscribers of any service at current price levels, the company said.
The App Store is a major revenue engine for the company. Apple, whose iPhone 14 went on sale worldwide this month, reported services revenue that (nearly) missed estimates in the June quarter. Chief Executive Officer Tim Cook acknowledged in an interview with Emily Chang of Bloomberg Television that the company was dealing with “some weakness” and a slower economy, but said he expects revenue to pick up again in the fourth quarter.
Although currently doing better than some tech peers, Apple has become more cautious as it grapples with a shaky economy. The iPhone maker plans to cut hiring and spending on some work teams in 2023, Bloomberg News reported.