With rampant inflation persisting in the U.S. and elsewhere, and a global recession on the horizon, observers were keenly interested in Apple’s pricing on four iPhone 14 models. Apple hiked the price in a number of key markets, but kept price the same in America. Apple also kept the price of the iPhone the same in mainland China, one of its most important markets.
One of the biggest surprises was that in the United States, Apple kept the prices of the iPhone 14 series the same as what it was charging for the equivalent iPhone 13 model.
The iPhone 14 base model will start at $799, the same amount that it initially charged for last year’s iPhone 13. The highest price 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 raised the price of its iPhone 14 series versus the iPhone 13 in key markets including the U.K., Japan, and Germany…
MacDailyNews Note: For the base model iPhone 14, the U.K saw an increase of £70 ($80); Australia: 50 Australian dollars ($33); Japan: 21,000 Japanese yen ($146); and Germany: 100 euros ($100). Other models have steeper price increases. For example, the iPhone 14 Pro Max in the U.K. costs £150 more than the iPhone 13 Pro Max.
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Wow a new kind of discrimination!
The price increases were due to the high current value of the dollar relative to other currencies. As they went down in value, the prices of items sold there had to go up. Nothing new there. Then in most of those places there’s 20%VAT. Usually the price quoted is with VAT included. Unlike the USA, many other countries require that the stated price include VAT. And as the price goes up because of the lower value of the currency, the VAT get bigger too, though the percentage stays the same.
So if something costs $1,000, it would have cost about €850 plus 20%VAT, as the Euro was worth about $1.15, so a total of €1,020. But now the Euro is worth about $1. So the item will cost about €1,000 plus 20% VAT, for a total of €1,200. That’s without the import taxes. The UK, for example has 10% import taxes, so add that to the device price before adding the VAT.
Esp interesting with the dollar’s “strength” and the effects of the dollar system exporting inflation around the World…as the reserve currency. Increased hardship for Japan, but not for China…hmm. So much for the “justice” Cookie advocates.
Follow the $$ lives onward.
That’s not exactly how it works. Everyone is affected. China has major problems of its own.
In the Netherlands a iPhone 14 Pro Max with 512gb now cost €1800. These are insane prices and a steep increase. I was interested in upgrading but not sure if want to pay that much money for a phone.
So a reason:
http://techzle.com/why-are-iphones-more-expensive-in-the-netherlands-than-in-america
Then there are import taxes. You pay taxes on things we don’t, and that’s reflected in the pricing. You also have some of the highest call rates of anywhere in the world.
You‘ll see Apple will let the prices like that even after the economy ”gets better“.