Apple increased the cost of its latest iPhones in some of its major markets, including China, Japan, and India, while keeping the price unchanged in the U.S.
The news comes as Cupertino-based giant attempts to revive growth despite a general slowdown in the smartphone market by focusing on premium users in countries like India.
On Tuesday, Apple unveiled its new range of iPhones. Compared to the iPhone 14 of the previous generation, all of the devices’ prices and storage options stayed the same in the United States.
However, Apple increased prices for almost all of the iPhone 15 models in China, which makes up close to 20% of the company’s overall sales. The fundamental specifications of the iPhone 15, iPhone 15 Plus, and iPhone 15 Pro Max did not change.
But Chinese customers will pay more if they want more storage space. For instance, the price of the iPhone 15’s 512 GB model has increased by 300 Chinese Yuan ($41) versus the iPhone 14.
Apple maintained the same prices for all models of the iPhone 15 and iPhone 15 Plus in India. However, prices for all models of the iPhone 15 Pro and Pro Max increased.
The iPhone 15 Pro in India now starts at 134,900 Indian rupees ($1,627) versus 129,900 rupees for the iPhone 14 Pro — a 5,000 rupee or roughly $60 increase.
This year, Apple has placed much focus on India. Tim Cook, the CEO, paid a visit there in April as Apple opened its first physical locations there. The production of Apple’s iPhones has also increased in India.
The depreciation of India’s rupee and China’s yuan against the U.S. dollar is one factor that may help to explain why prices are rising in both countries.
That implies that fewer U.S. dollars can be purchased with both currencies. Apple is therefore atoning for that.
The Pro models, in particular, are likely imported rather than locally produced, and as a result are subject to a high import tax in India.
Additionally, the price increases are only modest and mostly affect the more expensive models, so it is unlikely that they will have a significant impact on consumer confidence.
“Consumers who are buying the premium smartphones are much less price sensitive, not to mention the financing option and trade-in are very well established in these markets,” Nicole Peng, senior vice president at market research firm Canalys, told the media.
Meanwhile, the price of every model of the iPhone 15 was increased in Japan.
Apple has been cautious in its pricing approach for the iPhone 15. Prices haven’t risen by a lot lately. This is due to Apple’s need to exercise caution following a 2 percent year-over-year decline in iPhone revenue in the June quarter, which coincided with a wider global decline in smartphone sales.
This year’s smartphone market is still facing challenges. According to Counterpoint Research, worldwide smartphone shipments will reach 1 point 15 billion devices in 2023, a 6 percent year-over-year decline.
“Globally, Apple’s shipments are only expected to see a 1% growth in the full year 2023. Thus, higher prices, which especially target the consumers in the more resilient and wealthier segment, could help to support Apple’s revenue amid the challenging market environment,” Will Wong, a senior research manager at IDC, told the media.
Source-CNBC
