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.
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.