Apple released the latest announcement

The recent announcement issued by Apple in the United States shows that starting from October 5, the price of software and software in the Apple App Store in many countries and regions around the world will increase. What are the reasons behind this price increase?

The price increase of Apple involves 28 countries and regions from Europe to Asia, including all countries using the euro, as well as Sweden, Japan, South Korea, Chile, Egypt, Malaysia, etc. In other words, consumers in these areas will buy or subscribe to paid software higher than before.

According to the report released by mobile application data provider Apptopia, in fact, since July last year, Apple's app store has increased a lot. As of July 2022, the average price purchased in Apple's applications rose by about 40%year -on -year, while in the same period, the purchase price in the Google Store applied in application only increased by 9%.

Regarding the reasons behind this price increase, Apple officials did not give a detailed explanation, but many analysts believe that there are two main reasons. One is that the US dollar is strong. Apple uses the price increase to offset the weakness of the local currency to the US dollar; the other is Apple's revenue structure is shifting from hardware to software.

In terms of exchange rates, since the continuous interest rate hikes of the Fed this year, the US dollar index has risen more than 18%over the beginning of the year, reaching a high level in the past 20 years.

At the same time, because Apple's income is more than half of the markets outside the Americas, which means that the strong dollar of dollars to Apple's profit and disadvantages is greater than profit. The countries and regions that increased the price are almost all regions where local currencies have depreciated, such as euros and yen.

Recently, the exchange rate of the euro to the US dollar has continued to fall, falling to a new low of 20 years. Through the price increase, Apple also passed the pressure of exchange rate changes to consumers. Some analysts believe that price increases will affect application developers and game developers.

Source: CCTV Finance

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