Apple hikes app store prices over weak pound

Apple (NasdaqGS: AAPL - news) has backed up last year's 20% hike in laptop and computer prices with a sharp rise in app costs.

The move will mean - for the first time - that there is price parity between the dollar and the pound as an App Store product that used to cost 79p in the UK will now be 99p. US customers pay 99 cents.

The price shift reflects the fall of up to 20% in the pound versus the dollar since the EU referendum and signals Apple was unwilling to effectively earn less, in value terms, from an app purchased in the UK.

The technology firm said: "Price tiers on the App Store are set internationally on the basis of several factors, including currency exchange rates, business practices, taxes, and the cost of doing business.

"These factors vary from region to region and over time."

It is understood that the price rises will take effect within a week unless a specific app developer actively chooses to move to a lower pricing structure.

Apple made the announcement almost two weeks after it revealed the App Store had generated more than $20bn (£16bn) in revenue for developers last year - up 40% on 2015. Pokemon Go was the big success story.

The company revealed in October that its new MacBook Pro, Macbook Air and Mac Mini would rise in price by up to a quarter .

Sterling's slump was cited as the core reason at the time.

Rising prices are set to become the norm for UK consumers over the coming months as everyday goods become more expensive amid pressure on retailers to pass on higher import costs.

The scenario was reflected in the latest inflation figures which showed an impact from fuel and higher food and air fares while factory gate data suggested further price pressure is on the way with input costs growing almost 16% annually last month.

The car industry has been among the other voices warning of rising costs for UK consumers ahead, reflecting demands in their European supply chain despite benefits from a weaker pound which make their vehicles more competitive abroad.