We explain the reasons why iPhone 14 prices are higher in some countries.

The new range of iPhone models, the iPhone 14they recently arrived with little change under the pocket but, it depends on where we live, they also come with a higher price.

While some analysts have projected that Apple could increase the price of their latest iPhone due to continuous changes in the supply chain and inflation, others such as the US and China have not seen a price increase compared to the previous range.

Why the price of iPhone goes up in some countries

For consumers in markets like UK, Japan, Germany and Australiathe new iPhone models have suffered a price increase due to several factors that have forced the company to take this measure.

For example, the base price of the iPhone starts at 799 dollars in the United States, being the same price as the previous generation model in this country. In the case of the United Kingdom, the iPhone 14 goes up to 849 pounds, (a hefty $975)increasing the price by 80 dollars with respect to the iPhone 13.

This price increase is even higher for the models of the superior ones, reaching an increase of up to £150 more expensive than the equivalent of the previous range. We can even come to consider the highest range as potentially inaccessible to some people.

The reason for such a difference in prices between countries is due, according to Apple to the currency fluctuation. Thus, Luca Maestri, director of Apple, comments the following in the call they had with analysts about the fourth quarter last week.

Essentially every currency around the world has fallen against the US dollar. The rise of the dollar makes a difference in different areas. Obviously, the profit margin is lower in emerging areas, which means that earnings in dollars are affected.

Apple increases its profit compared to last year

Taking into account inflation and currency fluctuations in the past year, Apple has increased its profits by 8% with respect to the previous quarter, reaching profits of 90.15 billion dollars.

Nevertheless, not enough for Applewhich they estimated to double the amount had it not been for the increase in value of the dollar, as Tim Cook has commented:

Foreign currency exchange has had a decrease of 600 basis points in the last quarter. What has been significant. We could have made twice as much without this currency problem.

In 2019 Apple did lower prices in some markets

In 2019, coinciding with another rise in the dollar market, Apple adjusted prices in some markets to reset prices and adjust them to those they had in the local market of each country compared to 2018.

However, the reason why Apple was forced to lower the prices was because of the decline in consumer demand. This occurred, for example, in the Turkish market, with a sharp drop in the Turkish lira of 33% against the dollar, lowering company sales by 700 million dollars.

Demand, Apple’s indicator to raise or adjust prices

In 2022, Apple has not seen any decline in demand for its products in these markets. Therefore, with the rise of the dollar, they have preferred raise the prices of your products and continue to keep the profit margin as tight as possible.

In the case of China, the dollar has risen against the Chinese Yuan in the last 6 months, but there are signs that indicate a drop in demand of the products. While Maestri said that Apple had record sales in the last quarter in China, a recent study claims that sales in China of the new iPhone 14 have fallen 28% compared to the iPhone 13. This drop in demand is what causes the price in China not to rise compared to other countries.

In other countries, with the same or higher demand, prices have risen:

• Australia: rise from A$1,349 for the iPhone 13 to $1,399 for the iPhone 14.
• Japan: rise from 98,800 yen for the iPhone 13 to 119,800 yen for the iPhone 14.
• Germany: Increase from 899 euros for the iPhone 13 to 999 euros for the iPhone 14

What we see is that although there is a higher price for imports due to the rise in the dollar compared to other models, should not be contemplated if we take into account the few changes that have occurred between the new and the old generation.

Apple will continue to raise prices as long as the device demand is the same in a particular market and money problems continue to escalate. In this sense, it only remains to wait and see what can happen in future generations with the products of Tim Cook’s company.