Apple has not increased the price of the iPhone 14 series in the US and China. Those who bought one of the two iPhone 14 Pro models received a number of new features such as notch replacement, shape-shifting and multitasking Dynamic Island. Improvements were also made to the displays and cameras on the Pro models, with a faster chipset, more memory and larger batteries.
The strength of the US dollar forced Apple to raise iPhone prices in certain countries
But in the United States, the Apple iPhone 14 Pro started at $999 while the iPhone 14 Pro Max was tagged at $1,099 and up. That pricing is in line with what Apple charged for the iPhone 13 Pro and iPhone 13 Pro Max. It also matches the prices for the iPhone 12 Pro and iPhone 12 Pro Max. Heck, it’s even the same price used on the iPhone 11 Pro and iPhone 11 Pro Max.
Due to the strong dollar, Apple had to raise iPhone prices in some countries
Ironically, having a strong dollar isn’t always good for US businesses. It may allow them to pay less for deliveries, but for a multinational company like Apple, it forces them to raise prices abroad to keep their US dollar revenue stable. On CNBC, Cook admitted that “foreign exchange headwinds were over 600 basis points for the quarter. So it was significant. Without the foreign exchange headwind we would have grown at double digits.”
Some years Apple ends up eating up the cost of exchange rate fluctuations
Apple CFO Maestri says foreign exchange is “a very important factor influencing our results, both revenue and gross margin.” To mitigate the effects of currency movements, Apple hedges its exposure, as most global companies do. But these hedges are not always perfect.
Apple also looks to the currency markets around the world when it releases a new product. “In some cases, for example, customers in international markets had … they saw some price increases when we launched the new products,” Maestri said, “which is not something that US customers have seen, for example. And that’s unfortunately the situation where we’re going.” we are now with the strong dollar.”
This year, Apple says demand for iPhones hasn’t slowed down, even in markets where fluctuating local currencies forced Apple to raise its prices. Maestri says Apple delivered double-digit growth in India, Indonesia, Mexico, Vietnam and other countries, even when the results are calculated in their declining currencies.
“It’s important for us to look at how these markets are performing in local currency because it really gives us a good idea of customer response to our products, engagement with our ecosystem and overall brand strength,” says Maestri. during the call for profit. “And I have to say, in that regard, we feel really, really good about the progress we’re making in many markets around the world.”