Apple has sent out an email notifying customers of App Store price changes in certain countries within the next 24 hours. The company said that it will raise retail rates for the following currencies because of foreign exchange rate changes: Australian dollar, Indian rupee, Indonesian rupiah, Turkish lira, and South African rand.
On the other hand, retail prices for Israeli New Shekels and some price tiers for the New Zealand dollar will decrease.
Despite Apple’s statement that the price hikes are due to forex rates, apps are becoming an increasingly key part of the company’s business as it competes against Google Play.
In its Q1 2014 earnings statement, Apple reported that its iTunes/Software/Services business made up $4.397 billion of its total $57.59 billion in quarterly revenue, representing 19% growth year-over-year and 3% sequentially.
During that quarter, Apple paid out $2 billion to developers, a record amount and about two to three times what it paid in the period a year ago.
The full email sent to customers is below:
Within the next 24 hours, the following changes will be made to pricing on the App Store.
To account for changes in foreign exchange rates, App Store retail prices will be increased for the following currencies:
Australian Dollar
Indian Rupee
Indonesian Rupiah
Turkish Lira
South African Rand
Additionally, retail prices for Israeli New Shekels and some price tiers for the New Zealand Dollar will be decreased.
Price adjustments on the App Store are made periodically due to changes in foreign exchange rates. Within 24 hours, you will see the new Pricing Matrix in the Rights and Pricing section of Manage Your Apps on iTunes Connect.
Updates to iOS Paid Applications and Mac OS X Paid Applications contracts will be available on the iTunes Connect website. To view all current and outstanding contracts, see Contracts, Tax, and Banking on iTunes Connect.
Regards,
The App Store team
No, this isn’t an April Fools joke. Sorry.