Apple increased the price of the iPhone 14 series in several key markets, although it was unchanged in the United States.
With persistently rampant inflation and a global recession on the horizon, all eyes were on how Apple priced its flagship product during the Cupertino giant’s big event on Wednesday, where it revealed four iPhone 14 models.
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One of the biggest surprises was that in the United States, Apple kept the same prices for the iPhone 14 series like what it was charging for the equivalent iPhone 13 model.
The base model of the iPhone 14 will start at $799, the same amount it initially 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 markets globally.
Apple’s latest smartphones will test global consumers’ appetite for new electronics and test the US tech giant’s brand power.
Here are some comparisons of the base model of the iPhone 14 with the iPhone 13 in various countries.
- iPhone 13: £779
- iPhone 14: £849
- £70 ($80) price increase
- iPhone 13: 1,349 Australian dollars
- iPhone 14: 1,399 Australian dollars
- 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 the equivalent model from last year.
Analysts said part of the reason behind 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 that the euro and yen have depreciated quite a bit, which translates into slightly higher prices,” Neil Shah, a partner at Counterpoint Research, told CNBC.
On Wednesday, the British pound falls to its lowest level against the dollar since 1985. The euro stands at roughly parity with the dollar and the dollar continues to appreciate against the Japanese yen.
Apple kept the same iPhone price in mainland China, one of its biggest markets. Apple’s 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 resurgence of Covid this year. The authorities are sticking to their “zero-Covid” policy, which has led to the closure of major cities, including the shanghai financial metropolis Y Chengdu production center.
That has hurt the economy. and decreased consumer appetite.
Market research firm IDC expects the Chinese smartphone market to shrink 13% this year, falling below 300 million device shipments for the first time since 2012. That could be one reason why Apple has not changed the price of its iPhone in China.
“I wouldn’t be surprised if part of the reason for keeping prices stable is to sustain demand in such a challenging environment and in such a strategically important market for Apple,” said Bryan Ma, a technology industry analyst at IDC. CNBC.
Apple continues to be successful in China, particularly in the higher priced premium segment of the market.
Apple had a 70% market share of the $600+ smartphone segment in China 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 The smartphone business has been hit by US sanctions.leaving a hole for Apple to fill.
“Keeping prices flat helps Apple retain its user base and strengthen its position in China,” Ma said.