We explain the reasons why iPhone 14 prices are higher in some countries.
The new range of iPhone models that iPhone 14they came along recently little change but it depends on where we live, they also have a higher price.
Although some analysts have predicted that Apple might Increasing the price of their latest iPhone Due to constant supply chain changes and inflation, others like the US and China have not seen a price increase compared to the previous range.
Why the price of the iPhone is increasing in some countries
For consumers in markets like UK, Japan, Germany and AustraliaThe new iPhone models suffered an increase in price due to several factors that forced the company to take this action.
For example, the base price of the iPhone starts at $799 in the United States, to be the same price as the previous generation model in this country. The UK goes all the way up to the iPhone 14 849 pounds ($975 a lot)iPhone 13 price increase by $80.
This price increase is even higher for the top-end models and is increasing up to £150 more expensive not equal to the previous range. We cánido even imagine the highest range that might be unattainable for some people.
According to Apple, the reason for such a price difference between countries is due to that currency volatility. Here’s what Luca Maestri, Apple’s director ejecutivo, mentions in the call they had with analysts on the fourth quarter last week.
Basically every currency in the world has fallen against the US dollar. The rise in the dollar is making a difference in several areas. Of course, profit margins are lower in emerging markets, which means profits in dollar terms are affected.
Apple increases its profit compared to the previous year
Taking into account inflation and currency fluctuations over the past year, Apple increased its profit by 8% to articulo a profit of $90.15 billion from the previous quarter.
However, not enough for Applewhich they thought would have doubled if the value of the dollar hadn’t gone up, as Tim Cook said:
The FX rate fell 600 basis points last quarter. Which was significant. Without this currency problem, we could do twice as much.
In 2019, Apple would lower prices in some markets
In 2019, at the same time as the dollar market continued to rise, Apple adjusted prices in some markets to reset the prices and adjust them to the prices they had compared to 2018 in each country’s local market.
However, the reason Apple was forced to cut prices was because of this decline in consumer demand. This happened, for example, in the Turkish market with a sharp 33% drop in the Turkish lira against the dollar, causing the company’s sales to drop by $700 million.
Demand, Apple’s indicator of increasing or adjusting prices
In 2022, Apple saw no decline in demand for its products in these markets. Therefore, as the dollar rises, they are better Increase the prices of your products and continue to keep the profit margin as tight as possible.
In the case of China, the dollar has appreciated against the Chinese yuan over the past 6 months, but there are signs that this is the case demand decrease of the products. Although Maestri said Apple had record sales in China last quarter, a recent study claims the China sales are new iPhone 14 is down 28% compared to the iPhone 13. This drop in demand is the reason why the price in China will not increase compared to other countries.
In other countries, prices have risen with the same or higher demand:
- Australia: went from AUD$1,349 for the iPhone 13 to $1,399 for the iPhone 14.
- Japan: rising from 98,800 yen for the iPhone 13 to 119,800 yen for the iPhone 14.
- Germany: Increase from 899 euros for the iPhone 13 to 999 euros for the iPhone 14
What we see is that while imports are more expensive compared to other models due to the rise in the dollar, should not be considered if we consider the few changes that have occurred between the new generation and the old generation.
Apple will continue to raise prices as long as the The device demand is the same in a given market and Money problems keep increasing. With that in mind, we’ll just have to wait and see what may happen to Tim Cook’s company’s products for generations to come.