Apple increased the price of its iPhone 14 series versus the iPhone 13 in major regions such as the United Kingdom, Japan, and Germany while maintaining the smartphone’s price in the United States.
Rising component costs and a stronger currency could be two major causes for the change, according to analsyts.
However, Apple did not boost the price of the iPhone 14 in China, one of its important markets, which is still experiencing economic headwinds as a result of Covid lockdowns.
Apple raised the price of the iPhone 14 series in some significant nations, although it remained steady in the United States.
With rampant inflation persisting and a worldwide recession looming, all eyes were on how Apple priced its flagship product during the Cupertino company’s big event on Wednesday, where it unveiled four iPhone 14 variants.
One of the biggest surprises was that Apple kept the prices of the iPhone 14 series in the United States the same as it did for the similar iPhone 13 model.
The base model of the iPhone 14 will cost $799, the same as it did for last year’s iPhone 13. The most expensive iPhone 14 Pro Max starts at $1,099, which is the same as the iPhone 13 Pro Max.
However, Apple has hiked the price in some of its most important global regions.
The latest Apple smartphones will put the world’s consumer hunger for new devices to the test, as well as the US tech giant’s brand strength.
Here are some country-by-country comparisons of the iPhone 14 base model against the iPhone 13.
- iPhone 13: £779
- iPhone 14: £849
- £70 price increase ($80)
- iPhone 13: 1,349 Australian dollars
- iPhone 14: 1,399 Australian dollars
- 50 Australian dollars price increase ($33)
- iPhone 13: 98,800 Japanese yen
- iPhone 14: 119,800 Japanese yen
- 21,000 Japanese yen price increase ($146)
- iPhone 13: 899 euros
- iPhone 14: 999 euros
- 100 euro price increase ($100)
Other models have higher price increases. In the United Kingdom, for example, the iPhone 14 Pro Max is £150 more expensive than the similar model from last year.
Analysts believe that rising component costs and the strengthening of the US dollar against other currencies in regions where Apple has raised prices could be contributing factors.
The major message is that the Euro and Yen have weakened significantly, resulting in slightly higher prices, Neil Shah, partner at Counterpoint Research, told CNBC.
The British pound plummeted to its lowest level against the US dollar since 1985 on Wednesday. The euro remains about equal to the dollar, while the dollar continues to rise against the Japanese yen.
The Chinese iPhone price remains unchanged.
Apple kept the iPhone’s price same in mainland China, one of its most significant markets. In the second quarter of this year, Apple’s larger China revenue segment, which encompasses the mainland, Hong Kong, and Taiwan, was its third-largest by sales.
The iPhone 14 costs 5,999 Chinese yuan ($862), while the Pro Max costs 8,999 yuan.
This year has seen a revival of Covid in China. Authorities are sticking to their “zero-Covid” stance, which has resulted in the closure of key cities such as Shanghai’s financial district and Chengdu’s manufacturing base.
This has harmed the economy and decreased consumer demand.
According to IDC, the Chinese smartphone market will shrink by 13% this year, dipping below 300 million unit shipments for the first time since 2012. That could be one of the reasons Apple hasn’t increased the price of the iPhone in China.
I wouldn’t be shocked if part of the justification for keeping prices flat there is to sustain demand in such a challenging climate, and in such a strategically vital market for Apple at that,” CNBC’s Bryan Ma, technology industry analyst at IDC, said.
Apple’s success in China continues, notably in the higher-priced luxury portion of the market.