Apple is paving its way to super profits

“For the same price as before. » Apple CEO Tim Cook’s promise will certainly not hold true everywhere, especially in France. At his big back-to-school conference on September 7 at the company’s headquarters in Cupertino, California, the boss was pleased that the new iPhone 14 and iPhone 14 Plus will remain the same price as the previous iPhone 13. decision not applicable on the other side of the Atlantic. Apple no longer offers any of its new models below 1,000 euros. The price range for the iPhone 14 varies from 1,019 euros to… 2,129 euros. At 909 euros to 1,839 euros for the previous generation.

We’ve taken care of the new iPhone 14

The price increase was expected due to the shortage of electronic components and is not limited to Apple. Several manufacturers have therefore announced price increases, usually between 10 and 15%. “Technology groups are beginning to pass the rise in component prices on to the consumer”, noted Jean-Christophe Liaubet, partner at the consultancy EY Fabernovel. But the apple brand goes further than its competitors, with an entry level of +26%. Last July, his new computer, the MacBook Air M2, was launched with a 33% increase!

When asked about this increase, Apple evokes the strong fluctuations in raw material prices. In France, inflation reached +5.8% in France in August. The American company is known for its strategy inspired by the luxury sector. And given the contraction of the smartphone market, with sales falling, the best way to sustain growth is… by raising prices.

One euro at its lowest against the dollar

Except that it accentuates this trend by punishing French consumers, referring to the exchange rate. In recent months, the euro has fallen to its lowest point against the dollar, even falling below $0.99 on Monday 5 September. Mechanically, this weakness translates into higher prices in Europe. But not everything is clear, because there is a gap within the European continent itself. In Germany, the iPhone 14 starts at 999 euros, compared to 1,029 euros in France, and this difference cannot be explained by the VAT difference (19% over the Rhine, as in France). Even less if you look at Spain, where the iPhone 14 starts at 1,009 euros, while the VAT is 21%. Conversely, in Italy and Portugal, the iPhone 14 Pro is more expensive, at 1,339 euros and 1,349 euros respectively – without explanation, except for market differences… or less sensitivity to the price of these types of objects on the part of Latin consumers.

Tim Cook, an iPhone 14 Pro in hand, at the Apple 2022 keynote, in Cupertino, on Sept. 7 (JUSTIN SULLIVAN/AFP)Tim Cook, an iPhone 14 Pro in hand, at the Apple 2022 keynote, in Cupertino, on Sept. 7 (JUSTIN SULLIVAN/AFP) (JUSTIN SULLIVAN/AFP)

Apple goes further by also deciding to increase the price of its old “discount” iPhone SE model as well. This discreetly goes from 529 to 559 euros (+6%), for no real reason, apart from the fall of the euro, as the label remains the same in the United States. This remains surprising, as the price of obsolete technological products, whose components have already depreciated, should logically fall.


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