Apple raised the price of the iPhone 14 series in a number of key markets, although it remained unchanged in the United States.
With rampant inflation lingering and a global recession on the horizon, all eyes were on how Apple priced its core product at the Cupertino giant’s big event on Wednesday, where it unveiled four models of iPhone 14.
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One of the biggest surprises was that in the US, Apple kept prices for the iPhone 14 series the same as what it charged for the equivalent iPhone 13 model.
The base iPhone 14 model will start at $799, the same amount it originally charged for last year’s iPhone 13. The highest price of the iPhone 14 Pro Max starts at $1,099, the same as the iPhone 13 Pro Max.
However, Apple has raised the price in some of its biggest global markets.
Apple’s latest smartphones will be a test of global consumers’ appetite for new electronics and test the power of the US tech giant’s brand.
Here are some comparisons of the base model iPhone 14 vs iPhone 13 in different countries.
- iPhone 13: £779
- iPhone 14: £849
- £70 ($80) price increase
- iPhone 13: 1,349 Australian dollars
- iPhone 14: AU$1,399
- Price increase of 50 Australian dollars ($33)
- iPhone 13: 98,800 Japanese yen
- iPhone 14: 119,800 Japanese yen
- Price increase of 21,000 Japanese yen ($146)
- iPhone 13: 899 euros
- iPhone 14: 999 euros
- Price increase of 100 euros ($100)
Other models have steeper price increases. For example, the iPhone 14 Pro Max in the UK costs £150 more than last year’s equivalent model.
Analysts said part of the reason for the increases could be rising component costs and the appreciation of the US dollar against other currencies in markets where Apple has raised prices.
“The key takeaway is the euro and the yen has depreciated significantly, which has translated into slightly higher prices,” Counterpoint Research partner Neil Shah told CNBC.
On Wednesday, the pound sterling fell to its lowest level against the dollar since 1985. The euro remains at approximately parity with the dollar and the greenback continues to appreciate against the Japanese yen.
iPhone price in China remains the same
Apple has kept the iPhone price the same in mainland China, one of its most important markets. Apple’s Greater China revenue segment, which includes the mainland, Hong Kong and Taiwan, was its third-largest region by sales in the second quarter of the year.
Apple’s iPhone 14 is priced at 5,999 Chinese yuan ($862), with the Pro Max starting at 8,999 yuan.
China has seen a Covid resurgence this year. Authorities are sticking to their “zero-Covid” policy, which has led to shutdowns of major cities, including the financial metropolis of Shanghai and the manufacturing hub of Chengdu.
This hurt the economy and dampened consumer appetite.
Market research firm IDC expects China’s smartphone market to contract 13% this year, falling below 300 million device shipments for the first time since 2012. That could be the one of the reasons why Apple has not changed the prices of its iPhone in China.
“I wouldn’t be surprised if one of the reasons for holding prices steady is to support demand in such a challenging environment, and in such a strategically important market for Apple,” said analyst Bryan Ma. tech industry at IDC. CNBC.
Apple continues to find success in China, particularly in the high-end segment of the market.
Apple held a 70% market share in China’s $600+ smartphone segment in the second quarter, up from 58% in the first quarter, IDC said. Much of that can be attributed to the demise of Huawei, whose smartphone industry has been hit by US sanctions, leaving a void for Apple to fill.
“Keeping prices fixed helps Apple retain its user base and strengthen its position in China,” Ma said.
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