Apple Hikes iPad Mini Prices Outside US, With Europe Faring Worst

[gco212]

U.K. inflation has officially gone up to 10.1%, not 20%, these price increases are not justified IMO with the extremes they have gone to.

The iPad Mini really isn't as much of a viable option now, you could kind of justify it before, but like with the IPhone Pro models now starting at 1100 for the 6.1", they are going over a threshold I don't think as many will be happy to pay.
And that's still with jelly scrolling effect.

But the pound is down far more than 20% against the dollar, and that is the number that matters to Apple.

 

[Expos of 1969]

Honestly, the problem in this debate is that almost conflicting points are all equally true:

1. When you consider inflation and other issues, such as currency exchange rates, not all of this year's prices increases are unreasonable. In the UK, the 9th Gen iPad went from £319 (I think) to £369. With inflation at 10.1% in September that works out to £351.2, which is a far less dramatic. The base iPhone 14 is £849 compared to the iPhone 13's £779, but if you adjust this for current inflation you get £858, so the inflation-adjusted price actually went down (yeah I didn't see that one coming either).
2. That being said, Apple stealthily pushes new products as de-facto base models into higher price points while keeping the older models around at similar or only slightly higher prices. That arguably leaves the entry point untouched, but the price to get the current model went up quite a lot. The 10th Gen iPad starts at £499, so around 40% more expensive than the 9th Gen (yes it's a new product, but that's sort of the point). The new MacBook Air is £1,249, which is a 25% increase over the M1's current price. The same happened with the iPhone 12, when the iPhone 12 Mini went into the iPhone 11's price tier, pushing most people up by £100. It's quite clever.
3. You can't look at these things in isolation. Apple's pricing strategy can both be reasonable when compared to last year and still be ridiculous when compared to wider trends and economic outlook. The fact that something only went up with inflation doesn't really help people who have only read about pay rises in line with inflation in history books and need to absorb above-inflation cost increases in their essential expenditure. We're being told we all need to take a hit, but apparently all excludes corporate profits. Don't be surprised if people perceive massive price hikes during a massive cost of living crisis as obscene.
4. Even if you take the moral argument out of it all, the basic principle is that you can only sell what people are able or willing to buy. In the short run that will simply mean people holding on to what they have longer, it would be weird not to, but long-term this may very well push people over to other manufacturers. Increasingly the only products in a somewhat acceptable price range refurb devices that are several years old. Apple refurb is fantastic and one of the few companies I actually trust to buy a refurbished device from, but at some point I'd still prefer not to buy almost outdated stuff all the time.

Whatever the reason, it has become more expensive to be an Apple customer unless you are happy to buy things that have been on the market for a while, with the obvious risk that Apple will drop support sooner. I'm not predicting anything, but I wouldn't be surprised if Apple will find it harder to move stock in the next few years.

Good message. The ball is in the consumer's court. We can choose to buy Apple products and services or we can choose to not do so. Taking into account the current economic climate, price increases, the growing distaste for Apple's seemingly stronger desire to offer less and gain more and the increasing awareness by some folks that they should cut back on the use of tech items, I hope that Apple sells less than they want to.

 

[hanske68]

Apple, thanks for making it so easy to decide not to purchase your products any more!

 

[ikramerica]

100% agree with you. I think they have now reached prices which many just can't pay, even with monthly payments. They're pricing out the vast majority of even "rich" people. Devices will be held for significantly longer and their revenues will fall. Wouldn't surprise me if Android marketshare starts to increase again in the UK simply due to more affordable devices being available and most people find that "good enough"!

I have tried using the Android tablets that my wife and MIL have and the transition shock is just too great. I am sure I could get used to it if I had to though.

 

[webkit]

Someone is happy for the increased prices.

I doubt he's particularly happy since the price increases are largely due to currency value changes and not greater profits. Apple was selling the 64GB iPad mini Wi-Fi in the UK a year ago for £399 (pre-VAT) which was around $550 USD at the time. Apple is selling it this year for £474 (pre-VAT) which is around $534 USD.

They are selling the devices for less in USD today than they were a year ago which means less USD profit. On top of that, higher prices (in local currencies) overseas will likely result in lower sales which makes things even worse for Apple.

Lower per unit USD profit + lower sales is not something Apple would be happy about.

 

[4nNtt]

I remember the days when the euro was 80% more worth than the dollar and the prices weren't lowered because of that :')

Apple is pretty consistent in this. They often wait for product refreshes, but sync pricing to the dollar when they release new versions or if there are VAT changes. I’m not sure if this is the best strategy competitively. I wonder if Android devices see similar price changes with the dollar.

 

[webkit]

Ah well, at least we can look forward to that price cut when the euro recovers, right?

…right?

Right. Prices overseas were lower last year when the USD was weaker against those currencies.

This also includes app prices. In August 2021, for example, Apple had lowered app prices in South Africa, UK, and euro currency countries due to the weaker USD.

It goes both ways.

 

[bobjonesco]

If the strength of the USD is causing price increase everywhere - doesn’t this also mean Apple’s cost of production should also have gone down? Seeing that the currencies in the countries they manufacture their products in are also weaker against the USD.

Apple seems to be double dipping.

 

[Rygaard]

Apple significantly increased the price of existing iPad mini models in non-US markets after updating its online store with new entry-level iPad and iPad Pro models on Tuesday.

In the UK for example, the 64GB iPad mini now costs £569, up from £479 earlier in the day, while the 256GB model costs £749, up fro £619. That's a 19% and 21% price increase, respectively, making the iPad mini more expensive than the new 10.9-inch iPad, which starts from £499 and £649 at the same capacities.

Similar hikes can be found in countries across the EU. In Italy, for instance, the 64GB and 256GB iPad mini models are now 659 euros and 859 euros respectively, whereas previously they cost 559 euros and 729 euros, representing an 18% price increase.

India and markets across the Asia Pacific region have also seen hikes, although the increases in these areas are more modest. In Australia, for example, iPad mini prices have risen by around 11%.

Apple gave no reason for the price hikes outside the US, but they could be linked to the strong dollar combined with rising inflation and increased costs, although the price of most other latest-gen devices in Apple's hardware product lineup have remained constant.

(Thanks, Nick!)

Article Link: Apple Hikes iPad Mini Prices Outside US, With Europe Faring Worst

Or it could be that Apple like all others are jacking up prices, “because of increased costs “ while at the same time having record high earnings

 

[bpp85]

GBP and euro have experienced a 20% drop in value compared to last year. It’s no mystery why Apple raised prices there.

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And why didn’t they lower the prices when euro was stronger for example? This is just apple trying to cash in on this situation since they believe that europeans can handle the price increase. You can also bet that they won’t lower these prices if the £ and € recover

 

[turbineseaplane]

That’s one way to tank any remaining interest in the Mini 6!

 

[maxfromdenmark]

How's that USB-C mandate working out for you?

Oh please just give me a break. Don’t blame usb c for those price hikes

 

[aPple nErd]

It would be nice if Apple can also let the consumers know why there is such a massive increase in price.

Corporate greed

 

[erikkfi]

Apple doing their part to exacerbate inflation.

 

[JPack]

Apple has priced products lower overseas when the euro and British pound were strong. A year ago, when the British pound was stronger against the dollar the pre-VAT price of the 64GB iPad mini Wi-Fi was £399 compared to the pre-sales tax price of $499 for same device in the U.S. This year with the stronger U.S. dollar, the pre-VAT price is £474 compared to $499 in the U.S.

It's not a perfect system as Apple doesn't adjust prices as often as currency rates change but they do adjust prices to reflect currency fluctuations.

Hey, don’t let facts get in the way!

If U.K. people want to pretend Apple prices never went the other way, then it’s gotta be true!

 

[JPack]

It literally wasn't. At launch, the 13 Pro was £949. Although I suspect you are talking about pre-VAT, which is kind of irrelevant.

The better point to make, is that the 12 Pro launched at £999, whilst the 13 Pro launched at £949, whilst US pricing stayed flat at $999. So there are examples of Apple lowering the price too

Of course it’s true. 790 GBP.

It’s nuts you think it’s reasonable to compare U.K. prices which include 20% tax with U.S. Should Apple also pay the 79% import tax that Turkey charges on Apple products?

U.K. only has itself to blame for this currency mess.

 

[OllyW]

Of course it’s true. 790 GBP.

Of course it's only fair to compare the UK & US prices before taxes have been added but you could have made it clearer in your post by stating that it was the price before tax. Most consumers in the UK are not familiar with the tax free price because retailers in the UK have to show prices including VAT for consumer goods, which is why I presume the question was asked.

Consumers usually have to pay VAT and can't generally recover it. If customers are consumers, all prices quoted in ads should include VAT in the stated price. It is not sufficient to state a VAT-exclusive price accompanied by information that VAT is payable.

There are different rules for business users who are generally able to recover VAT on purchases.

 

[ArchEtech]

People don't think inflation be like it is, but do.

 

[Asbow]

Wow, once again we can’t understand economics. I for one don’t know why the dollar is surging verses other countries, but I do know (cause I can read) that it has this effect on products in countries with weaker currencies

It’s easy. The Fed has been aggressively increasing interest rates. Also US the only country that votes to increase its debt ceiling (if it didn’t, takes the entire global economy with it).

 

[UK-MacAddict]

Yep and these price hikes in Europe do not only apply to iPads. Earlier on a similar thing happened to new iPhones and I guess any Macs released next will copy this pattern.

Steve jobs was more focused on Apple product expansion, to reach as many people as possible, while Cook is seemingly trying to maintain Apple’s traditionally high profit margins despite the worldwide economic downturn. This is not an easy task, as making Apple out of reach for many people and turning it into a luxury brand will backfire on the long term.

You can google a video of Steve Jobs explaining his philosophy in an old interview. He explains his goal is to always make the best product possible and he states companies shouldn’t be too greedy and make REASONABLE profits.

That’s why when he was in charge variations in products were basically storage size and screen size. Everything else was identical.

Now Tim Apple the idiot hides features behind different models to try and justify the stupid pricing.

 

[UK-MacAddict]

All those quoting currency. Apple never drops prices when the pound is stronger than the dollar.

Let’s see if they drop the prices back 30% in the UK when the economy settles back down.

 

[Haiku_Oezu]

Right. Prices overseas were lower last year when the USD was weaker against those currencies.

This also includes app prices. In August 2021, for example, Apple had lowered app prices in South Africa, UK, and euro currency countries due to the weaker USD.

It goes both ways.

When’s the last time Apple dropped prices for their products in Europe?

I admit I don’t really keep track of them but they always seem higher for us even when you take out our admittedly sky high sales taxes.

 

[MVMNT]

That’s not how businesses work.

But there's plenty of data out there to support current consumer apathy towards businesses working like this.

They didn't need to pull this fragmented baseline model move.

 

[MVMNT]

All those quoting currency. Apple never drops prices when the pound is stronger than the dollar.

Let’s see if they drop the prices back 30% in the UK when the economy settles back down.

Of course they won't. It was an opportunity to force a new base price. Starting to feel like the Mac pricing model of way back when.

 

[altrey]

Are we missing the fact that due to strong dollar Apple cost to produce items are most likely down ... should this be a factor in their pricing model not just currency fluctuation based on the sell price ?

So for example if ipad Pro was made on UK it would cost them around 20% less to produce it now then last year.