By
Godfrey Benjamin
March 22nd, 2024
According to analysts, the new pricing model became inevitable considering the growing inflationary costs that have affected the cost of producing the iPhones.
Users who want to get the newly released iPhone 14 smartphones will not be paying the same price as Apple Inc (NASDAQ: AAPL) has a different pricing mode that is location-dependent. Customers of the luxury smartphone maker in the United States will be able to purchase the iPhone 14 series at the same price as the iPhone 13.
The base iPhone 14 phone in the US is priced at $799, the same amount Apple initially priced for the iPhone 13 when it released it last year. The iPhone 14 Pro Max is being sold for $1,099, the same price that the iPhone 13 Pro Max hit the stores a year ago.
Apple did not maintain a base price for the iPhone in all of its key markets with the tech giant raising the amount for the phones in the United Kingdom, Australia, Japan, and Germany. The price was also unchanged in China.
In the UK, the iPhone 14 is priced at £849, a £70 price increase from the iPhone 13 which goes for £779. In Australia, the base iPhone 14 phone went on sale for 1,399 Australian dollars, a 50 dollars increment from that of the iPhone 13. Similar price increments were visible for the phone’s sales in Japan and Australia.
“The key takeaway is the Euro and Yen has depreciated quite a bit translating to slightly higher prices,” Neil Shah, partner at Counterpoint Research, told CNBC.
According to analysts, the new pricing model became inevitable considering the growing inflationary costs that have affected the cost of producing the iPhones. The growing strength of the US Dollar against other mainstream fiat currencies is also a factor with the Pound falling to the lowest level against the greenback for the first time since 1985.
iPhone 14 Pricing Consideration for Chinese Buyers
Apple did not change the pricing for its iPhone 14 phones in China, a move many have tagged as crucial to sustaining the larger market in the country.
The price of the iPhone 14 is pegged at 5,999 Chinese yuan ($862), with the Pro Max starting at 8,999 yuan. While most economies have had their fair share of meltdowns in their economy, China has continued to have it rough with the growing COVID-19 and the strict policies being enacted to combat it.
The policies have led to lockdowns in key cities, a move that has disrupted key economic activities including in the smartphone sector. Mainland China, Taiwan, and Hong Kong remain one of Apple’s best markets for the iPhone, commanding a 70% market share in the $600-plus smartphone segment in China.
“I won’t be surprised if part of the rationale to keep prices flat there is to sustain demand in such a difficult environment, and in such a strategically important market for Apple at that,” said Bryan Ma, technology industry analyst at IDC.