Apple To Hike Prices Of Paid Apps, Introduce New Subscription Schemes.
It was recently announced that the prices of paid apps in the App Store by Apple will be slightly increased. This is to give room for lower budget subscriptions and make good apps more affordable at limited arrangements.
Apple chose to hike the prices in Canada, UK and Europe and might also do the same for the global market soon. This step has been supported in the sense that it will make the most popular applications available at affordable tags. This can be done only if there are low budget schemes running at the App Store. The only way to do that was to increase the prices of the paid apps a little more. However, the complete list of changes has not been confirmed and it is yet to see if the schemes remain the same globally or not. You might have noticed that the price tag of 60p has been missing and there is a new tag of 79p as the cheapest price point.
This is also uniform across all applications on the Apple App Store. Many are surprised at this sudden change, but it seems that even the app developers and sellers were not aware of this gesture until 2 days ago. Although, this effect is sure to attract more affordable users, but it wasnt a scheme really. It was the result of some new taxation law enforced by the government that affects the sale of digital products across Europe. It was notified in a last-minute email to the app developers and users that this change is about to increase the price tags in Europe, UK, Canada and Norway but decrease the prices in Iceland and change completely in Russia. So, those grudging on the Cupertino giant about this change must give them a slack.
It was more due to VAT or Value Added Tax renewal aftereffect. Previously, it allowed retailers to set up shops in places of lowest VAT rates and sell internationally without having to pay higher tax rates. This gesture is supposed to stop this practice, but has been implemented irrespective and regardless of small businesses in order to maintain a uniformity. The escape for small businesses is to sell through massive third parties to cut out the taxation drama. Hence, Apples price hike takes into account higher regional tax rates and increased accounting costs to sort out multiple taxation methods.