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Following Britain's decision to leave the European Union, the pound has taken a major hit and its value has gone down by nearly 20% ever since the vote took place. We have already seen repercussions of the same when OnePlus decided to hike pricing of the OnePlus 3 from £309 to £329 and Apple decided to hike pricing of its Macs by 20% to compensate for the falling value of the pound.
Given the huge contribution of the App Store in its revenues, Apple has now decided to increase pricing of apps on its App Store by up to 25% to adjust to the pound's new value. So an app which now costs £0.79 will cost £0.99 after a few days. The price change will take place over the next seven days which means you still have time to download your favourite apps at existing rates.
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“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. These factors vary from region to region and over time,” said Apple in a press statement. According to the Guardian, Apple has hiked App Store pricing in India and Turkey as well to respond to service tax rates and depreciation of the Turkish Lira respectively.
As of now, there is no similar hike in pricing of apps in the Google Play Store but given how the value of the pound has taken a hit, any such decision by Google may not come as a surprise in the near future. It will be interesting to see how Apple's decision to hike App Store prices will affect its revenue in the long run.