Apple Raises Prices for the iPhone 14 and Watch Series 8; except in US and China

With rampant inflation persisting and a worldwide recession looming, all eyes were on how Apple priced its flagship product during the Cupertino company’s major event on Wednesday when it unveiled four iPhone 14 variants.

One of the biggest surprises was that Apple kept the pricing of the iPhone 14 series in the United States the same as it did for the similar iPhone 13 model.

The basic 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 several of its most important worldwide 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 basic model against the iPhone 13.

The U.K.

£779 for the iPhone 13

£849 for the iPhone 14

Price rise of £70 ($80)

Australia

The iPhone 13 costs $1,349

The iPhone 14 costs $1,399

Price increase of 50 Australian dollars ($33)

Japan

The iPhone 13 costs 98,800 Japanese yen

119,800 Japanese yen for the iPhone 14

Price rise of 21,000 Japanese yen ($146)

Germany

899 euros for the iPhone 13

999 euros for the iPhone 14

Price rise of 100 euros ($100)

Other models have experienced bigger price rises. In the United Kingdom, for example, the iPhone 14 Pro Max. is £150 more costly than the identical model from the previous year.

Analysts believe that rising component costs and the strengthening of the US dollar against other currencies in regions where Apple has raised pricing might be contributing factors.

“The major message is that the Euro and Yen have weakened significantly, resulting in somewhat higher pricing,” 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 stays about equal to the dollar, while the dollar continues to rise against the Japanese yen.

The Chinese iPhone pricing stays unchanged

Apple maintained the iPhone’s pricing same in mainland China, one of its most significant markets. In the second quarter of this year, Apple’s larger China revenue division, which encompasses the mainland, Hong Kong, and Taiwan, was it’s third-largest by sales.

The iPhone 14 costs 5,999 Chinese yuan ($862), while the Pro Max costs 8,999 yuan.

This year has witnessed a revival of Covid in China. Authorities are sticking to their “zero-Covid” stance, which has resulted in the closure of key cities like 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 sales for the first time since 2012. That might 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 unchanged 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.

According to IDC, Apple had a 70% market share in China’s $600-plus smartphone sector in the second quarter, up from 58% in the first quarter. Much of this may be ascribed to Huawei’s downfall, which has been hampered by US sanctions, creating a void for Apple to fill.

“Keeping pricing stable helps Apple keep its customer base and strengthen its position in China,” Ma explained.

Read:

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