Falling rand prompts App Store price hike - TechCentral

Falling rand prompts App Store price hike



The iPhone 6s

The collapse in the value of the rand against major currencies in the past couple of months has prompted Apple to increase the price of both apps and in-app purchases in the South African version of the App Store.

Prices will go up for South African consumers and consumers in six other markets later this week, according to a report by The Next Web.

In a letter to customers, Apple has said that due to changes in foreign exchange rates, it has been forced to “update prices” in the App Store.

Countries affected are South Africa, Canada, Israel, Mexico, New Zealand, Russia and Singapore.

The South African rand has fallen in value against the US dollar by 22% in the past three months. In the past year, it has fallen by almost a third.

South Africans subscribing to magazines and other in-app content and services with automatic subscription renewal enabled will need to re-subscribe at the new price, Apple said in the letter.

The cheapest app in the South African App Store is now R18,99, up from R13,99 previously. Apps in the cheapest tier in the US App Store cost $0,99, so R18,99 is directly comparable at an exchange rate of R16,80/$ plus 14% South African VAT. Of the R18,99 tier 1 price, developers’ proceeds are R11,66 net of commission.

The most expensive tier in the new price plan is tier 87, where apps cost a whopping R19 999 each.

Those wanting more insight into the new tariffs should have a look at this PDF published on Apple’s website.  — (c) 2016 NewsCentral Media

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