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Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

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Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#21

Post by simonh »

tveita wrote: post #2

"While critics might note that Apple’s price increase is greater than the pound’s loss in value, financial analysts predict that the market still hasn’t fully priced in the cost of Brexit — that is to say the pound still has further to fall." So what mechanisms keep the price from instantly dropping if "everyone" agrees it should be lower? Market inefficiencies? Or lots of money betting on an upswing?

> ...Apple’s price increase is greater than the pound’s loss in value...

It's 5% more than the pound's loss in value next to the Dollar. But bear in mind that for the last 6 months Apple has simply swallowed a 20% reduction in their (and developers) UK App Store revenue. Look at it that way and we in the UK have enjoyed subsidized prices for most of the last year.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#22

Post by weavie »

I haven't checked (I don't make enough from it to get excited about it) but presumably my income from the app store from the rest of the world should also increase. Does Apple work out my revenue in Dollars and then convert to GBP at the exchange rate at the time of payment?

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#23

Post by tonyedgecombe »

rrggrr wrote: post #13

Eurozone debt-to-GDP: 92%. This is BEFORE one considers (a) member country debt, (b) troubled bank liabilities which EU must backstop (eg. Deutchebank), and (c) immense social, security and defense costs which EU nations must incur due to recent global events. By contrast UK debt-to-GDP: 90% and falling, and a US-UK trade deal is likely very soon. I'd rather own Sterling.

Before the last election the pound was close to $1.65, after the election it started falling and currently the sentiment is we are heading for a hard brexit. I suspect it has found it's new level.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#24

Post by k-mcgrady »

EasyTiger_ wrote: post #11

Will this affect Apple Music subscription? If so then I'm out.

I don't think they can change that without big consequences. A 9.99 price point is pretty important which is evident given that it costs $9.99 and £9.99 and €9.99.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#25

Post by tonyedgecombe »

mattmanser wrote: post #8
tveita wrote: post #2

"While critics might note that Apple’s price increase is greater than the pound’s loss in value, financial analysts predict that the market still hasn’t fully priced in the cost of Brexit — that is to say the pound still has further to fall." So what mechanisms keep the price from instantly dropping if "everyone" agrees it should be lower? Market inefficiencies? Or lots of money betting on an upswing?

Are these the same financial analysts that said there was going to be an immediate meltdown post-brexit?

Yes, but we were told article 50 would be called immediately however it hasn't been.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#26

Post by andyjohnson0 »

rrggrr wrote: post #13

Eurozone debt-to-GDP: 92%. This is BEFORE one considers (a) member country debt, (b) troubled bank liabilities which EU must backstop (eg. Deutchebank), and (c) immense social, security and defense costs which EU nations must incur due to recent global events. By contrast UK debt-to-GDP: 90% and falling, and a US-UK trade deal is likely very soon. I'd rather own Sterling.

> and a US-UK trade deal is likely very soon

The earliest that this can happen is 2019, when the UK ceases to be a member of the EU. And since EU rules prohibit members from negotiating their own trade agreements, its probably going to be 2020 or later before a deal is signed.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#27

Post by misnome »

rrggrr wrote: post #13

Eurozone debt-to-GDP: 92%. This is BEFORE one considers (a) member country debt, (b) troubled bank liabilities which EU must backstop (eg. Deutchebank), and (c) immense social, security and defense costs which EU nations must incur due to recent global events. By contrast UK debt-to-GDP: 90% and falling, and a US-UK trade deal is likely very soon. I'd rather own Sterling.

Source? Everything I can find says that it is still rising, including several newspaper articles late 2016, but the only data I can find runs up to 2015, including the automatic google-chart:

https://www.google.co.uk/publicdata/explore?ds=ds22a34krhq5p...

Which has UK increasing, and Germany and the EU decreasing.

> and a US-UK trade deal is likely very soon.

Again, source for this, other than magical wishful-thinking? Considering

a) It's still illegal for the UK to make trade deals until it's out of the EU b) "Fast" is entirely based on a statement from Trump. Trump's statements are entirely meaningless because he always says exactly what the person wants to hear, regardless of complexities or whether it's actually achievable (allowing the press to trumpet the statements as fact). Trade deals are never fast because it's never a zero-sum game.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#28

Post by misnome »

dazc wrote: post #3

"This latest round of price changes doesn’t just affect the UK (customers in India and Turkey are also going to see increases).." OK, '25 percent due to Brexit' is going to get more clicks.

Different countries change over time for different reasons, and Apple tends to change them in bulk.

Are you arguing that the massive drop in the pound isn't due to Brexit? As far as I'm aware even the most rabid Farage-fanciers don't argue that, but argue it's a good thing (Cheaper exports! As though we don't import most of the raw materials, but that's not as snappy).

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#29

Post by andyjohnson0 »

j4kp07 wrote: post #15
hacker_9 wrote: post #10

I don't like prices increasing as much as anyone, but if this gets people to stop and think before buying Apple products then I'm all for it. They have been overcharging for their products for the last 10 years.

News Flash: Developers set the prices for their apps. Not Apple.

Not really. Developers choose a pricing tier for their apps. Apple sets the price of apps in each tier for each currency they support.

Re: Apple’s UK App Store prices will rise 25% following Brexit currency fluctuations

#30

Post by gaius »

andyjohnson0 wrote: post #26
rrggrr wrote: post #13

Eurozone debt-to-GDP: 92%. This is BEFORE one considers (a) member country debt, (b) troubled bank liabilities which EU must backstop (eg. Deutchebank), and (c) immense social, security and defense costs which EU nations must incur due to recent global events. By contrast UK debt-to-GDP: 90% and falling, and a US-UK trade deal is likely very soon. I'd rather own Sterling.

> and a US-UK trade deal is likely very soon The earliest that this can happen is 2019, when the UK ceases to be a member of the EU. And since EU rules prohibit members from negotiating their own trade agreements, its probably going to be 2020 or later before a deal is signed.

Not true. Article 50 stipulates the maximum negotiating period, not the minimum. T-May could quite legally declare Article 50, negotiate for a day, then join NAFTA the day after...
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