Apple announces App Store tax and pricing changes for several countries

Although there were some setbacks that led to several delays, 2020 appears to be a great year for Apple. The release of the second-generation iPhone SE, the Apple Watch Series 6, Apple Watch SE, and the iPhone 12 series have been met with favourable feedback from consumers and analysts. However, its latest move has apparently caught some users by surprise as App Store prices in several countries will reportedly be adjusted.

The announcement was made via its Apple Developer website which detailed the reasons behind the move. "When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store. In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in Brazil, Colombia, India, Indonesia, Russia, and South Africa," read the notice.

It was indicated that the Indian government's introduction of a two-percent equalisation levy and Indonesia's 10-percent value-added tax on foreign developers have contributed to the decision. Apple likewise noted that App Stores for Albania and Iceland will also see pricing changes that should align it with "other markets selling in U.S. dollars with value-added tax."

Apple also pointed out: "You can change the price of your apps and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect. If you offer subscriptions, you can choose to preserve prices for existing subscribers"

As such, developers are encouraged to download and read the updated price tier charts as soon as possible to avoid misunderstandings. Once the adjustments are in effect, the "Pricing and Availability" page on the Apple Developer portal will reflect the changes specified in the advisory.

Based on how Apple described the upcoming adjustments, some users question whether other services such as iCloud, Apple Music, and Apple TV+ will be included. For now, the exact date as to when these will come into effect was not provided, but analysts speculate it might be soon.

In a related news, the rumoured launch of the AirPods Studio has purportedly been moved to 2021 due to issues with ergonomics as highlighted by internal testing. Moreover, insiders claim that it might debut alongside the third-generation AirPods and second-generation AirPods Pro.