Apple announced today that it will be increasing the prices of apps and in-app purchases in Nigeria, Egypt, and Tanzania. The price changes will take effect on July 25, 2023, and are being implemented to reflect changes in tax regulations and foreign exchange rates in these countries.
In Egypt, the new VAT rate of 14% will be applied to all apps and in-app purchases. In Tanzania, the new VAT rate of 18% will be applied to all apps and in-app purchases, and a new digital service tax of 2% will also be applied. In Türkiye, the VAT rate will increase from 18% to 20%.
The price changes will affect both developers and consumers. For developers, the new prices will mean that they will receive less revenue from sales of their apps and in-app purchases in these countries. For consumers, the new prices will mean that they will have to pay more for apps and in-app purchases.
Apple has said that it will be using publicly available exchange rate information from financial data providers to help ensure that prices for apps and in-app purchases stay equalized across all storefronts. This means that the price of an app or in-app purchase in Nigeria, Egypt, or Tanzania will be the same as the price of the same app or in-app purchase in other countries, after taking into account the new tax rates and exchange rates.
Apple has also said that it will be providing developers with more information about the price changes in the coming weeks. This information will include details about how the new prices will affect developers’ revenue, as well as tips on how to manage the changes.
The price changes in Nigeria, Egypt, and Tanzania are the latest in a series of changes that Apple has made to its pricing policies in recent years. In 2016, Apple introduced a new pricing structure for apps in India, which resulted in lower prices for consumers in that country. In 2019, Apple began to allow developers to set different prices for their apps in different countries.
The price changes in Nigeria, Egypt, and Tanzania are likely to have a significant impact on the app market in these countries. It remains to be seen how consumers will react to the higher prices, and whether developers will be able to offset the revenue losses by increasing their app prices in other countries.