App Store Prices Soar In EU Countries: Base Price Now €0.89
by Joe White
October 26, 2012
Apple has hiked up App Store prices in select EU countries, raising the base price from €0.79 to €0.89.
The change so far appears to have affected a handful of European countries, and at this moment has been confirmed in in Italy, Netherlands, Germany, Denmark, France, Belgium, Slovenia, among others. At the same time, it seems Apple has also added a bunch of new currencies in the App Store, including Russian Rubles, Turkish Lira, Indain Rupees, Indonesian Rupish, Isreali New Shekels, Saudi Arabian Riyal, South African Rand, and UAE Dirham.
Why the change? The Next Web reports:
The amount of increase in each country appears to be caused by an increase in local taxes in many countries. Apple is based in Luxembourg for tax and VAT purposes with regards to sales in the EU, so an additional cost is passed on to developers. This puts their cut closer to 60% in the EU, rather than the 70% Apple pays developers elsewhere. But that isn’t anything new. There does, however, appear to be a slight increase in the cut Apple takes due to taxes which puts their cut at nearly exactly 59-60%.The report continues:
The bottom line is that developers are going to be earning (very slightly) less from sales in the EU due to taxes and users are going to have to pay somewhere around the equivalent of €.10 more on the first pricing tier of apps and even more as you go up in price.So bad news for us all, effectively. Have you spotted a change in price at your local App Store? Let us know in the comments. Source: App Store Via: The Next Web
