Apple announces that from October 5, 2022, all prices will be increased on the App Store application store accessible in Europe. Apple explains compensate for the depreciation of the euro against the dollar. In addition to Eurozone countries, App Store app prices are also expected to increase in the following countries: Chile, Egypt, Japan, Malaysia, Pakistan, Poland, South Korea, Sweden, and Vietnam.
The war in Ukraine has been seriously disrupting markets already hurt by the pandemic and containment measures for months. But the energy sanctions, and retaliatory measures from Moscow – which decided to stop gas deliveries via the Nord Stream 1 pipeline this summer – are beginning to have far more serious economic consequences.
Here’s why prices are rising on the App Store in October
The European energy mix has until now depended 40% on Russian gas. However, this reality of skyrocketing energy prices is pushing many companies to reduce their production and/or to increase their prices – which, in addition to the fears linked to the conflict and its consequences, is undermining confidence in the European economy. And unscrews the euro, like many other currencies around the world against the dollar.
The United States and the dollar are indeed in a much better position than the euro and the economies of the old continent. An ocean separates the country conflict between Russia and Ukraine and the United States have never depended as much as European countries on Russian energies. In this complicated period of economic instability, the dollar also continues to be a benchmark.
The currency still represents around 60% of global foreign exchange reserves, against around 27% for the euro. The uncertainties on the European continent seem to be pushing the market to further accentuate its confidence in the greenback. At the time of writing these lines, the dollar and the euro are precisely at parity (1 US dollar = 1 euro). For comparison, in September 2021, 1 US dollar was equal to 85 euro cents. That is an appreciation of around 15% over the period.