Thursday, February 2, 2023

Why Apple has increased the price of iPhone worldwide except China and USA

We cite the reasons why iPhone 14 prices are higher in some countries.

new range of iphone model iphone 14 has come recently small change under pocket But, depending on where we live, they also come with a higher price tag.

While some analysts have speculated that Apple may Increase in the price of their latest iPhone Due to constant changes in the supply chain and inflation, others such as the US and China have not seen prices rise as compared to the previous range.

Why does the iPhone cost more in some countries?

to consumers in markets such as UK, Japan, Germany and AustraliaThe new iPhone models have faced a price hike due to several factors which have forced the company to take this measure.

For example, the base price of iPhone starts from $799 in the United States, being the same price as the previous generation model in this country. In the case of the United Kingdom, the iPhone 14 goes up 849 pounds, (colossal $975)With respect to the iPhone 13, the price has been hiked by $80.

This price hike is even greater for the better-off models, reaching an increase of up to £150 more expensive Compared to the equivalent of the previous range. We can also consider the highest category as potentially inaccessible to some people.

The reason for such difference in prices between countries according to Apple is currency fluctuation, Thus, Apple director Luca Maestri made the following comments in a call with analysts last week about the fourth quarter.

Essentially every currency around the world has depreciated against the US Dollar. The rise of the dollar makes a difference in various sectors. Obviously, profit margins are lower in emerging sectors, which means earnings in dollars take a hit.

Apple’s profit has increased compared to last year

Keeping in view the inflation and currency fluctuations in the previous year, Apple’s profit increased by 8% In relation to the previous quarter, the profit reached 90.15 billion dollars.

Even then, not enough appleswhich he estimated would have doubled this amount if the dollar had not increased in value, as Tim Cook commented:

Foreign exchange has decreased by 600 basis points in the last quarter. What has been remarkable. We could have earned twice as much without this currency problem.

Apple slashes prices in some markets in 2019

In 2019, with another rise in the dollar market, Apple Adjusted prices in some markets To reset and adjust prices to each country’s local market compared to 2018.

However, there was a reason Apple was forced to reduce prices decline in consumer demand, This happened, for example, in the Turkish market, with a sharp fall of 33% in the Turkish lira against the dollar, which reduced the company’s sales by $ 700 million.

Apple’s indicator to raise or adjust demand, prices

In 2022, Apple doesn’t see any drop in demand for its products in these markets. Therefore, with the rise of the dollar, they have preferred raise the prices of your products And continue to keep profit margins as tight as possible.

In the case of China, the dollar has risen against the Chinese yuan over the last 6 months, but there are signs that indicate a lack of demand of products. While Maestri said that Apple had record sales in China last quarter, a recent study claims that new product sales in China have taken a hit. 28% drop in iPhone 14 Compared to the iPhone 13. This drop in demand is the reason why prices in China have not increased compared to other countries.

Prices have risen in other countries with similar or higher demand:

  • Australia: increased from A$1,349 for the iPhone 13 to A$1,399 for the iPhone 14.
  • Japan: increased from 98,800 yen for the iPhone 13 to 119,800 yen for the iPhone 14.
  • Germany: Increased from 899 euros for the iPhone 13 to 999 euros for the iPhone 14

What we see is that though the import price is higher due to the increase in dollar as compared to other models, should not consider If we take into account some of the changes that have taken place between the new and the old generation.

As long as Apple keeps raising prices Device demand is same in a particular market and money problem is increasing, In this sense, it remains only to wait and see what can happen with the products of Tim Cook’s company in future generations.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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