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Other Are you happy about Apple’s recent pricing hikes?
- Thread starter AppleFansF
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I’m really surprised iphone stayed the same in the USA. I think most expected a price increase.
I kinda am.
When I use Apple Pay, I'm using my Apple Card, which gets me 2% and sometimes 3% cash back.
Otherwise, I'm using my Chase Sapphire card, which is typically 1% cash back where I use it.
Decision to use Apple Pay when available is a "value for money" decision.
It’ll probably happen next year and I expect it’ll go up again in Europe. We’ll get the same people here applauding that they’re paying £1149 for their 15 Pro because it’s only gone up £50, no doubt.
Some have been expecting price hikes for a few years but it hasn't happened. If you were to adjust for inflation alone (from 2019 prices when Pro and Pro Max models were first introduced), the starting price of the iPhone 14 Pro should've been around $1,160 but it's still $999 and that's with twice the storage of the 11 Pro. Despite various product improvements, Apple has kept U.S. prices the same.
Apple is engaged in complete price gouging: https://www.macworld.com/article/1370370/apple-record-earnings.html
As are many corporations, all in the pursuit of besting record profits with each quarter - which is the real economic threat that is hurting us all, and growing worse by the quarter.
It is the exact same ridiculousness with the price of gas in the face of big oil's big profits.
Why does Apple feel compelled to raise the price of its services (Music, TV, etc.) when over-indulgent record profits do nothing but grow and it hovers as a 3 trillion dollar company?
As are many corporations, all in the pursuit of besting record profits with each quarter - which is the real economic threat that is hurting us all, and growing worse by the quarter.
It is the exact same ridiculousness with the price of gas in the face of big oil's big profits.
Why does Apple feel compelled to raise the price of its services (Music, TV, etc.) when over-indulgent record profits do nothing but grow and it hovers as a 3 trillion dollar company?
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Price gouging is typically associated with sudden and significant price increases of essential goods and services (water, gasoline, electricity, medical supplies, etc.) often due a spike in demand and/or reduction in supply caused by specific events such as a natural disaster, war or global crisis.
The entry price of this year's third generation iPhone SE (with four times the storage) is only $30 more than the original iPhone SE was in 2016.
The entry price of the iPhone 14 (with twice the storage) is $170 less than what the smaller iPhone X was in 2017.
The Pro and Pro Max models haven't seen price increases (in fact, 256GB and 512GB versions are actually $50 cheaper) since they were introduced in 2019.
Even with the recent increase (its first in three years), Apple TV+ is still less than most of its ad-free competitors.
How does any of the above show Apple is price gouging?
I really do wish people knew what they were actually commenting on... So many replies quoting Apple are price gouging, no they aren't. Look up the definition of it first.
As a company they are entitled to charge what they like, their overheads have increased as well so it's only natural to pass some of that cost onto the consumer for the product.
As a company they are entitled to charge what they like, their overheads have increased as well so it's only natural to pass some of that cost onto the consumer for the product.
If you’re happy with the price hikes and can justify to yourself why the products cost more, that’s great. It’s also ok to be unsatisfied with the costs going up even if you understand that all prices are going up. Many people, myself included have voted with our wallets this year and can still be unhappy with current pricing. Freedom of choice and all that.
It’s also associated with any company who raise prices disproportionally:
“Price gouging is where companies substantially raise prices above costs of production and investment, often due to a lack of competition”.
I think a £150 price increase on a 14 Pro/14Pro Max in a 12 month period far exceeds the rate of inflation. Apple sure have the right to increase prices to whatever they see fit and I have the choice not to buy them, which I did. It’s certainly driving the competition this year, especially those who kept pricing the same as 2021. I know the common retort to that is ‘Apple make more profit though na na na na naaaa’, but that makes no difference at a consumer level. When more of your associates are using different phones, nobody cares how much profit Apple makes apart from Apple themselves.
This is not about "inflation." We’ve had high inflation in the U.S. this year yet iPhone prices stayed the same. Those overseas price increases were tied to the currency value changes.
The pre-VAT price of a 128GB iPhone 13 Pro at launch last year in the UK was around $1,074 USD. The pre-VAT price of a 128GB iPhone 14 Pro at launch this year was around $1,043 USD. In Apple's home country currency (USD), the price in the UK is actually lower this year than it was last year even with various product improvements.
Apple's actions here can not be viewed as price gouging.
At least you can choose to not get Apple stuff. We've cut it all except iCloud Storage. Only choice vs eating is starvation. You may be able to stop getting gas if you work somewhere a reasonable distance or don't have horrid mass transit
Yes they can say what they won't that isn't vulgar and is their opinion about their situation, and I'll respect, but if you start telling others to be happy taking it up the tailpipe, then noooooo......
We’ve been through this many times but once again, pre VAT means nothing to a UK consumer. We only buy products that include VAT unless you are a business that can claim it back. A general consumer doesn’t care what a pre VAT price is. All they see is a 13 Pro 128GB cost £949 on release in September 2021. A 14 Pro 128GB cost £1099 on release in September 2022, an increase at retail of £150. A consumer doesn’t give a toss if a pre VAT price was less than previous years because that isn’t the price that matters, it’s the cost to them. Comparing to a price in US Dollars is also irrelevant at this point IMO, as the US cost again means nothing to us. We can only comment on the price increases that are evidently visible and ones that affect us directly.
It’s certainly something I will be considering in a couple of years time. Android is the dominant platform in Europe and there is plenty of choice. I’ve always preferred Apple’s way of doing things but I’m also not naive to the fact a smartphone does essentially the same thing regardless of what brand you go for these days. I’m seeing more and more people in my circles changing over from iPhone of late and I’m sure it’s driven by price and the chance to try something different due to more attractive deals.
Unfortunately I live too far from my line of work to drop using my car for travel. I do work from home more again though since a litre of diesel is now £1.93 or £8.78 a gallon.
Yea was more something different for me this time. And it was an even swap so I have no installments this time. Well, they are credited, but I rarely switch unless the coverage would suddenly tank.
In this case, with or without VAT doesn't really change my point that prices in Apple’s home country currency are actually LOWER this year than last year. I used pre-VAT because it reflects Apple's pricing, not Apple's pricing PLUS government tax. Too many Europeans on here have been comparing £ or € prices with VAT against U.S. prices without sales tax which is not a fair comparison.
The price of a 128GB iPhone 13 Pro (including VAT) at launch last year in the UK was around $1,290 USD. The price of a 128GB iPhone 14 Pro (including VAT) at launch this year was around $1,252 USD. The price in USD is lower this year than it was last year. Apple is a U.S. company and a lot of iPhone engineering, software development, purchasing, etc. is done in USD and therefore it's quite reasonable to base costs in USD especially when the discussion is about supposed price gouging.
Apple's actions here can not be viewed as price gouging.
I’ll still buy Apple products because there’s nothing better. Sadly.. I’m not happy about the price hikes at all but what can you do? Everything from food, living to electronics is getting pricier. The world is crazy. Somebody should do something about it.
What is the expectation from UK consumers? I get that UK consumers might not care about pre-tax or currency exchange, but that's not Apple's fault.
It goes up indirectly. The average price of iPhone lineup up by 50$. Average price of 14= (800 + 900 + 1000 + 1100)/4, compared to iPhone 13 which is (700+800+1000+1100)/4.
This may be just semantic, but saying the iPhone Pro price went up “indirectly” because the price of the non-pro iPhone went up, is kind of a strange way to put it and I’d say incorrect. The increased price of the iPhone non-Pro does not in any way cost the customer who buys the iPhone Pro more money, not even indirectly. An example of an indirect price increase would be something more like the cost of apps going up, so that the person who buys the iPhone Pro would end up spending more money to have the same experience as their previous iPhone Pro.
Like you said, it’s the average price of the entire iPhone lineup that went up. That part was accurate (I’m assuming; I haven’t actually checked the numbers).
I’m curious, where is that definition of price gouging from?
Because there are huge problems with it. According to that definition—where lack of competition is not an absolute requirement (it only says “often”)—Gucci, Rolls Royce, and all luxury brands can be seen as price gouging.
Also according to that definion—which doesn’t include the context of emergencies and necessities (which all the definitions of price gouging that I’ve read includes)—the retro pin ball machine maker selling for exorbitant prices is price gouging.
It’s ok if people want to use that term as hyperbole in this situation, but it should be understood that it is hyperbole. Because Apple has significant competition, and people don’t need Apple products to live.
Just the first definition offered in a Google search.
Price gouging is essentially when companies raise prices beyond the rate in which they have invested and where they are taking advantage of an economic downturn. The cost of everything has gone up over the past year but £150 added to an iPhone retail price makes me question whether that is a true reflection on Apples supply chain costs. For me, I think Apple could have absorbed some of those costs with thru immense wealth and kept many of their regular consumers onside.