I know that the price increases have something to do with the weaker currency. Still, a base model iPhone for 999€ is just not worth it (to me). To take another example: The new Pixel 7 retails for $599 in the US, but only 649€ (incl. VAT) in Germany. Google may sell it at a loss, but what matters to the customer in the end is the overall price-performance ratio. And 649 sounds a lot more compelling to me than 999.
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Other Are you happy about Apple’s recent pricing hikes?
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Apple will only take a hit on margins if their profits drop. If a chunk of customers move away to Android for a year Apple will have to re-evaluate their margins and thereafter discount their phones to attract more custom.
Whether in North America or overseas, if a customer doesn't feel Apple is providing good value they should definitely consider other options. That hasn't changed.
As far as Pixel phones go, Google is trying to build market share and has been much more aggressive with pricing. Discounts on Pixel phones during the year are common e.g., months before the new 7 models came out, you could get the Pixel 6 in the U.S. for $100 off and the 6 Pro for $200 off. Even the 6a which only came out in July has already been discounted; it's currently $150 off MSRP. This differs greatly from Apple which typically only adjusts phone prices once a year when the new models are introduced.
More succinctly: Google is selling cheap phones because it has to, if it wants to sell its phones. Apple doesn't have this problem.
It’s not a service I’m familiar with. But it certainly sounds like greed.
Unless there’s some licensing changes that result in higher costs for the US?
Don't get me wrong. I still vastly prefer iOS over Android. But as a somewhat "normal" phone user who is not interested in the pro models, I feel like a device with stripped features (such as the new chip or the dynamic island) for 999€ is a rip-off. Assuming Apple sticks with this strategy for the future generations of the iPhone combined with a probably even bigger gap between base and pro models, I don't think I could bring myself to buy another iPhone (at full price). That's just no longer attractive to me. Of course, there are still other options like purchasing the iPhone through another store (much cheaper) or buying it used. And there is the SE.
There's more to pricing than simply applying the current exchange rate to your prices at the time a new product releases. Companies will often price products a cheaper in less wealthy countries where people have less disposable income.
Take Japan for example, a country with a relatively low amount of disposable income when compared to the US - 33k USD in Japan vs 54k USD in the US per person per year. The 14 Pro is priced at 149.800 Yen over there, which includes 13.618 Yen in taxes. Convert the pre-tax price into USD and the iPhone 14 Pro in Japan comes out to roughly $916 before taxes. So while we'll have a hard time describing it as cheap, it's still almost $100 cheaper in Japan than it is in the US.
The point is, while you're right that the currency exchange rate obviously has a big influence, it's not like Apple has to raise prices. They have to consider the impact on demand when raising the prices and then decide whether the reduced demand with higher profit margins makes up for the higher volume they could sell at a lower price.
I have to assume Apple did factor in the impact on demand and still decided to sell iPhones in Europe for basically the same price (in USD) as they sell them in the U.S. Whether or not it was a good decision or strategy, especially given where the U.S. and global economies may be going, remains to be seen.
My issue is more with the increase in "greed" and "price gouging" accusations on here implying that Apple is trying to rip off overseas buyers by raising prices there while keeping them the same in the U.S. when the reality is, various prices (in USD) are actually the same or even lower than they are in the U.S. I've also compared prices and the currency exchange rates between this year and last year and have found prices that have indeed dropped (again, in USD) overseas. I realize this is of little or no comfort to buyers having to pay higher prices in their local currencies but I think too much blame is being put on Apple rather than the primary issue which is the currency value change.
Ummm..about that.
You might also consider some countries impose higher costs of doing business, due to labor laws, regulations, taxes, etc. That can be reflected in the price too.
My understanding is that in the UK or E.U. or both (I don't remember which), phones are required to come with a 2 year warranty. Compare that with the 1 year elsewhere. So yeah, you can expect those phones to cost more.
Good point. The iPhone warranty in EU countries is two years compared to just one year in the U.S.
Wow... lower prices (in USD) plus longer warranties. Maybe it's U.S. customers who should be complaining about high U.S. prices or that Apple is selling iPhones too cheaply in Europe!
You are right, the price for BritBox in the US is not fair, but I'm curious what do you watch on Brit Box if you don't mind me asking?
I'm not a BritBox subscriber. I had previously raised the BritBox pricing question in another thread where people from the UK were complaining about Apple price increases. I was pointing out that price increases can go both directions and in the case of BritBox, increases occurred in the U.S. even though the USD is stronger/GBP is weaker right now.
More impactful to me than ANYTHING Apple does with its prices:
My gas and electric bills totaled $3540 last year.
So far this year, they're at $3384, and there are 3 bills to go. I'm expecting my total to get close to $4000.
Way more impactful to me than anything Apple does.
My gas and electric bills totaled $3540 last year.
So far this year, they're at $3384, and there are 3 bills to go. I'm expecting my total to get close to $4000.
Way more impactful to me than anything Apple does.
Spare a thought for us Europeans who have faced a much higher increase than that in our energy bills, haha. I wish my gas bill has only went up by 69% 😂.
It is what it is. I said it's ok with the marginal improvements, but everyone is raising their prices. It sucks but what can I do about it.
This and once they price out more $$$ than the $$$ they get from the ones who stay
Not happy but can understand if the % and frequency weren't ridiculous. Prices are outstripping wages even worse than before
Heck it's not even willing anymore. It's ABLE. I'm not going to starve or go homeless for electronics
Totally agree. I'd say basic internet and a cellphone are "needed" depending on your job. I could have neither and survive. Wouldn't be fun. My dad has had basic phones forever, and he does just fine.We are forunate that gas is just somewhat up again and electric isn't insane. Groceries are another story though
Yea I'm glad energy isn't so bad here, but there's enough inflation here to be substantially affecting the ones in the middle
Yep. Groceries are our biggest monthly variable expense, by far.
Agreed.
I find it odd that Apple, king of long contractual least cost sourcing and pricing, couldn’t avoid this price hike for services that other than Apple Music - the only one for explanation - hasn’t really increased.
The cost of movie production sets and ext hasn’t really gone up to the point to pass the fees to consumers. Just Apple incorrectly priced slow growth. Too many early discounts. This ATV+ gets hiked. This isn’t caused by inflation.
Take note this is going to get worse as 1 of Sweden’s top bank has filed for bankruptcy just last week! Anyone remember Leeman Bros, Meryl Lynch etc from the USA in 2008?! I see it’s beginning again.