UK App Store prices to jump 25% to reflect weak pound

Apple has just announced that prices on the UK App Store will rise as a reaction to the falling exchange rate between the dollar and the pound. Where a $0.99 app in the US used to cost 79p in the UK, it will now cost 99p. As far as Apple is concerned the two currencies have reached parity.

There’s no doubting the reason behind the change, with the pound falling over 18% against the dollar since the EU Referendum. The dollar is still worth 82p bit of course there are significant differences in taxation between the US and the UK.

Apple announced the change in an email to developers today, which read: when foreign exchange rates or taxation changes, we sometimes need to update prices on the App Store”.

Prices of apps will rise across the board, which will include in-app purchases, such as the $9.99 cost of Super Mario Run, which should now cost 9.99 rather than 7.99. Unless of course the app developer decides to drop the prices of its app to compensate, taking the loss itself.

In a statement, Apple said: 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.”

According to analysts App Annie, the UK was the world’s fourth largest market for iOS revenue last year with games being the top category for worldwide revenue. Based on those headline stats alone the UK mobile gaming industry is going to be seriously impacted by the increased pricing, which will inevitably bite into consumers willingness to purchase both apps and in-app purchases.