Apple stated that the prices of apps and in-app purchases on the App Store will rise in Malaysia. Although they stated that the pricing “would be adjusted properly,” they omitted to explain the rationale behind the price increase.
The affected nations, in addition to Malaysia, also include Chile, Egypt, Japan, Pakistan, Poland, South Korea, Sweden, Vietnam, and all of the Eurozone’s member states. According to Apple, these price hikes specifically apply to Vietnam and are a result of “new laws requiring Apple to collect and submit appropriate taxes, being value added tax (VAT) and corporate income tax (CIT) at corresponding rates of 5%.”
“Your proceeds will be computed based on the tax-exclusive price and will be adjusted accordingly. The Paid Applications Agreement’s Exhibit B will be revised to reflect that Apple is responsible for collecting and remitting all relevant taxes in Vietnam, according to Apple.
A link to Apple’s new App Store price tier changes for the impacted nations was also included in the post. If you’re not too aware with Apple’s pricing tiers, they essentially apply to any mobile transaction, including subscriptions, in-app sales, and direct app purchases. Rather than putting a fixed pricing on a particular good or service, developers can pick from 94 tiers that represent transaction values starting at about $0.99 USD. Here is a list of Malaysia’s new price tiers.
The lowest paid tier (1) for App Store app prices is RM4.90, albeit I’m not positive about the prior price tier list for Malaysia. It is consistent with the weak Ringgit at present (current exchange rate: USD 1 = RM4.56), which has reached its lowest point since the Asian Financial Crisis in 1998. However, app creators have the option to keep their product’s current subscription fees.
The new iPhone 14 series also costs significantly more in Malaysia despite no price rise in the United States. Prices for the latest iPhone have increased by RM300 to RM700 overall. So, even though it’s upsetting, customers of the App Store shouldn’t be too alarmed by price rises for apps and in-app purchases.