Apple is raising prices for new iPhone in key markets such as China and India, while keeping them unchanged in the US.
Apple has raised prices for its latest iPhone models in some of its major markets, including China, Japan and India, while keeping prices the same in the United States.
Apple is trying to revive its growth as it battles a slowing smartphone market . It is targeting high -end users in countries like India, which has become a major destination for the Cupertino-based company. The move is a major step toward further expanding its influence in the global tech market.
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Apple on Tuesday announced its new iPhone 15 series. In the US, prices for all models, as well as capacities , remained unchanged compared to the previous iPhone 14 model.
However, in China, where it accounts for nearly 20% of Apple's total sales, the company raised prices for nearly all iPhone 15 models. The base versions of the iPhone 15, iPhone 15 Plus, and iPhone 15 Pro Max remained the same, but Chinese customers will pay more for larger storage options. For example, the version of the iPhone 15 has increased by 300 Chinese yuan (~$40) compared to the iPhone 14.
In India, Apple has kept the prices of all versions of the iPhone 15 and iPhone 15 Plus unchanged. However, prices have been increased for all versions of the iPhone 15 Pro and Pro Max. Specifically, in India, the iPhone 15 Pro now starts at 134,900 Indian rupees (~$1,515), compared to 129,900 rupees for the iPhone 14 Pro — an increase of around 5,000 rupees, or about $60.
Although all versions of the iPhone 15 Pro Max have the same price, it is 10,000 rupees (~112€) higher compared to the corresponding iPhone 14 Pro Max model.
India has recently become an important market for Apple. In April, CEO Tim Cook visited the country and the first physical Apple stores opened there. In addition, Apple is increasing its iPhone production in India. These developments have been highlighted and highlight the importance of India as a market for Apple.
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CNBC reached out to Apple to inquire about its plans to manufacture the iPhone 15 in India.
The price increases are relatively small and mainly affect the more expensive models. However, they are expected to have minimal impact on consumer sentiment.
Consumers acquiring high-end smartphones are less price-sensitive, while financing and trade-in options remain firmly established in this market, according to Nicole Peng, senior vice president at firm Canalys, in an interview with CNBC.
Meanwhile, in Japan, Apple has increased the price of all iPhone 15 models.
Apple's iPhone 15 pricing strategy was cautious and reasonable. The price increases were not abrupt, as Apple was cautiously handling the situation after its iPhone revenue fell slightly by 2% year-on-year in the June quarter, at a time when global smartphone sales are generally declining. Even the smartphone market is facing problems this year. According to Counterpoint research, total smartphone shipments are forecast to decline by 6% in 2023 compared to the previous year, with the number reaching 1.15 billion devices.
"Globally, Apple's shipments are expected to grow by just 1% for the full year 2023. However, higher prices imposed mainly on consumers in the more durable and affluent segment could help Apple's revenue growth, despite market demands," Will Wong, senior research director at IDC, told CNBC.
Apple price cuts
Apple has balanced some of its price increases with reductions in other areas.
In the UK, Apple has reduced the price of all iPhone 15 models compared to the iPhone 14. For example, the iPhone 14 started at £849 (~€987), while the iPhone 15 costs £50 less, at £799 (~€926).
At the same time, Apple reduced the price of the previous iPhone 14 model in China, as revealed by its website.
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One effective strategy is to offer a discounted price on older models, such as the iPhone 14. This will help consumers on a budget who want a high-end mobile phone from a reputable company. Mr. Wong said this approach will meet consumer needs and maintain product quality
Although the new iPhone 15 model is aimed at consumers with a larger budget, both the new and previous series can contribute to increasing usage.
Source: cnbc.com
