Japanese and South Korean consumers will have to spend relatively more for the latest iPhones this year than last year’s model as the currencies of these two countries have depreciated significantly against the dollar.
What happened: The iPhone 14, which will be available in Japan from September 16, costs 119,800 yen, according to Apple’s website. This is about 21% higher than the price of the iPhone 13 when it was reportedly released a year ago Nike Asia. By comparison, the iPhone 14 is still priced at $799 in the US, the same as last year’s model, despite historically high inflation, the report says.
take experts: Hideaki YokotaExecutive Analyst at Japan’s MM Research Institute, Nikkei Asia said the sharp weakness in Japanese and South Korean currencies left Apple with no choice but to raise prices on its flagship device to maintain profitability in those markets, according to the report.
currency movement: Over the past year, the yen has depreciated by more than 23% against the dollar, while the Korean won has fallen by more than 15%. Although the Bank of Korea raised interest rates to control inflation Bank of Japan has maintained its ultra-loose monetary policy, deviating from the stance of global central banks. This divergence has caused the Japanese yen to depreciate sharply, falling as low as 144.99 against the greenback on Wednesday.
Prices in China: The Chinese yuan has also depreciated over 7% against the dollar in one year. However, prices of the latest iPhones have remained largely the same at around $866 in China, the report said. According to Yokota, the sluggish economy in China could be one of the reasons Apple inc AAPL maintain its prices in the country despite a weak currency.
