Apple Inc. (NASDAQ: AAPL) has raised iPhone and iPads prices in Japan in an extraordinary move after the precipitous drop in the value of the Japanese Yen this year.
Apple raises the price of its mobile devices by 25%
The tech giant raises the value of mobile gadgets by 25% in Japan, with iPhone 13’s price increasing to $868 (117,800 yen). As per checks with Apple’s website, it raised the pricing of its iPad and iPad Air by 10,000 yen each.
As a result of rising manufacturing costs and a depreciating yen, a growing number of retail companies, including Asahi Group Holdings Ltd. and Lawson Inc., are raising consumer prices in the country. Apple is the latest to do so, and its approach could signal price increases from other consumer electronics manufacturers.
Although the price increase was followed by the introduction of new models, Apple increased the price of its MacBook laptops by over 10% in June. At a moment when there are no latest releases anticipated for several months, it is making greater rises with its mobile devices.
Cost of everything in Japan is rising
Japanese retailers have long been hesitant to boost sticker prices due to the still-weak salary growth for fear of alienating customers used to months of deflation. The cost of everything is now beginning to rise as firms pass costs on to customers, from beer and soy sauce to burgers and fried chicken nuggets. Last month, as risk assets recovered, the yen surpassed its 24-year low versus the dollar, putting additional pressure on merchants.
On the company’s US website, prices for well-known Apple products, like the iPhone, remained the same from June 30. The price increases are probably only going to affect Japan because the yen has fallen significantly since spring.
At an earnings announcement on April 28, Apple’s CFO, Luca Maestri, stated that forex rates had become a problem. In the June quarter of this year, the company had anticipated that revenues generated abroad would decline in dollar terms, which would have a negative impact on year-over-year sales growth.