21st September 2022 - 2 min read
Apple has announced that it will be increasing the price of apps and in-app purchases on the App Store in several countries across Asia and Europe, including Malaysia. This revision is set to take effect starting from as early as 5 October 2022, although no exact dates were highlighted for each specific country.
Aside from Malaysia, some other countries that will also be impacted by this price increase include Vietnam, Japan, South Korea, and all territories that use the euro currency (except Montenegro). The percentage of hike will vary across regions; South Korea, for instance, will see a hike of about 20% to 25%, whereas prices in Japan will be raised by 30% to 35% (may vary based on different tiers).
For Malaysia, the new price tiers for App Store are set to begin at RM4.90 for the lowest paid tier (Tier 1), going all the way up to RM4,799.90 for highest tier (Tier 87). Additionally, the alternate Tier A and B will soon be priced at RM0.90 and RM1.90, respectively, while the alternate Tier 1 to Tier 5 will range between RM4.90 to RM23.90. Here’s the full list for your reference:
Auto-renewable subscriptions, on the other hand, will not be affected by the App Store’s price increase. Developers can opt to retain their apps’ current prices for existing subscribers if they wish.
Although Apple did not share specific justifications for the price increase, it is very likely driven by currency fluctuations, caused by inflation and rising energy costs. This is further supported by how the latest iPhone 14 series also has a steeper price as compared to previous years. Apple does clarify, though, that the price hike for Vietnam, specifically, reflects the new regulations for Apple to “collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates, respectively”.
Meanwhile, previous reports have indicated that Apple does periodically adjust its prices in different regions for currencies and taxes. Last year, for instance, the tech giant reduced starting prices for many apps in euro zone countries from 1.09 euros to 99 euro cents.
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