App Store Price Hike Now Live, but Paid Apps Can Still Be Rs. 10

Earlier this week, Apple reveal that it will increase the App Store India prices based on changing exchange rates and taxation policies. The new prices are now live on the App Store and Mac App Store, and as expected, there has been a 33 percent rise in the standard base price.

Apple will now charge Rs. 80 for every $0.99 purchase moving forward, instead of the earlier charge of Rs. 60. A $1.99 purchase will now cost Rs. 160 instead of Rs. 120 earlier. The rest of the new pricing is as follows:

The price structure is now reflecting on the App Store.

As is evident from the above table, the pricing for alternate tier A and tier B prices in India - special low prices for select markets - remains unchanged.

For those unaware, Apple sets its prices on the App Store in any region against the US dollar. This would lead to rather steep prices for paid apps in App Store. To combat this problem, Apple introduced alternate low-price tiers in many emerging markets. Thanks to these new tiers, developers can continue to charge, say, $0.99 for an app in the US App Store but charge customers in India Rs. 10 (Alternate Tier A) or Rs. 30 (Alternate Tier B).

This Alternate tier pricing, first introduced in India in 2015, will remain unchanged. This gives developers an option to reduce the prices of their apps, especially in emerging markets where users may not be able to afford equivalent dollar pricing.

Apple announced last month that it would be charging a service tax rate of 14 percent as required by new laws along with additional levies of 0.5 percent for Krishi Kalyan Cess (KKC) and Swachh Bharat Cess (SBC) for apps and in-app purchases bought by Indian consumers from December 1. These changes, along with the falling Indian rupee, are thought to be the reason for the price hike.

Apple has also hiked prices of apps in Romania, UK, Turkey, and Russia in line with changes in local taxation policies and currency rates