Apple Increases Prices in Japan by Up To 25%

[MacRumors]

Apple today increased the price of iPhone, iPad, and Apple Watch models in Japan by up to 25 percent.

The price hikes, first reported by Nikkei Asia, have been triggered by a fall in the value of the yen and a widening interest rate gap between Japan and the United States.

The iPhone 13 previously started at 98,800 yen (~$730) in Japan, but now costs 117,800 yen (~$870), an increase of almost 20 percent. The latest iPhone SE with 64GB of storage now costs 5,000 yen (~$37) more than before at 62,800 yen (~$464). The 128GB iPhone 13 Pro now costs 22,000 yen (~$162) more than before at 144,800 yen (~$1,069).

Apple raised the prices of Macs in Japan last month by over 10 percent alongside the launch of the M2 MacBook Pro, so no Mac product lines were further increased in price today, although iPad and iPad Air models increased by 10,000 yen (~$74) each.

Article Link: Apple Increases Prices in Japan by Up To 25%

 

[ratspg]

That’s a pretty big increase. A rebalancing with the interest rate gap.

 

[SirAnthonyHopkins]

That's a hell of a price jump. Were they underpriced significantly before? Is inflation even more out of control in Japan than it is in the UK?

 

[owidhh]

That's a hell of a price jump. Were they underpriced significantly before? Is inflation even more out of control in Japan than it is in the UK?

Inflation has historically been quite low in Japan. The issue currently is the tumbli value of the yen, went from like 109 JPY per dollar to 135. So this is Apple adjusting.

 

[vertsix]

I'm actually surprised Apple continues to absorb the inflation squeeze with the iPhones here in the US. Technically, it is a great deal to get the iPhone 13 Pro, for example, at $999, when its real MSRP should be $1149 based on inflation.

This may extend to other countries, I'd buy an iPhone if I was considering one now before prices rise.

 

[Yrmmont]

I’ll wait until the recession hits and fewer people are purchasing (and pricing is lower).

 

[Psychicbob]

25% is big enough to hurt sales substantially

 

[JackLeBoul]

It's to bad it never works the other way.....

Countries which currencies that appreciate against the USD never gets a cut, Apple simply pockets the difference.
Case in point, Swiss Francs is up +70% the last 20 years but we never got a price reduction.

 

[mtrm]

That's a hell of a price jump. Were they underpriced significantly before? Is inflation even more out of control in Japan than it is in the UK?

Japan has an historically low inflation, especially since the late 90ies. They’ve been in deflation for quite some time during the 2000s, and they have actually been trying to push it up. Contrary to what many may believe, deflation is not good, and will kill economic activity (why buy or invest now, if you can do it for cheaper later).
As such, they definitely aren’t having any inflationary spiral right now. Just for comparison, the IMF projects that the inflation in the UK will be 7.4% this year and less than 1% in Japan. (Both figures are from April, so I’d say they are widely outdated by now).
I believe these price adjustments are mainly due to interest rate differences (as the FED began rising interest rates), which made the JPY depreciate (or the USD appreciate).

Sorry for the very technical analysis! I love economics

 

[phos07]

Not only Apple products, Japan this year has experienced price increases in virtually everything... except our paychecks. So I assume it's inevitable Apple will see a decrease in sales from us.

 

[Damian83]

It's to bad it never works the other way.....

Countries which currencies that appreciate against the USD never gets a cut, Apple simply pockets the difference.
Case in point, Swiss Francs is up +70% the last 20 years but we never got a price reduction.

this chart its pointless. if swiss apple prices are similar to those in EU or US, that's fine. Do u expect to have a 70% cheaper iphone only because CHF gained +70% over USD in TWENTY years? This proves nothing

 

[Enlightened Doggo]

I'm actually surprised Apple continues to absorb the inflation squeeze with the iPhones here in the US. Technically, it is a great deal to get the iPhone 13 Pro, for example, at $999, when its real MSRP should be $1149 based on inflation.

This may extend to other countries, I'd buy an iPhone if I was considering one now before prices rise.

The cost of parts for iPhones is already only about 50% of the MSRP. Pricing is relatively high. They already inflate their prices year-over-year far more than USD inflation.

 

[webkit]

I'm actually surprised Apple continues to absorb the inflation squeeze with the iPhones here in the US. Technically, it is a great deal to get the iPhone 13 Pro, for example, at $999, when its real MSRP should be $1149 based on inflation.

Inflation is only part of what drives prices and, of course, it doesn’t impact all goods and services equally. The price of iPhones have actually decreased at times over the years e.g., an unlocked 64GB iPhone 5 was $849 at launch in 2012 yet five years later, an unlocked 64GB iPhone 8 was only $699.

 

[CapitalIdea]

Apple did not raise prices. They adjusted for current exchange rates due to currency fluctuations. BIG difference.

 

[Realityck]

The iPhone 13 previously started at 98,800 yen (~$730) in Japan, but now costs 117,800 yen (~$870), an increase of almost 20 percent. The latest iPhone SE with 64GB of storage now costs 5,000 yen (~$37) more than before at 62,800 yen (~$464). The 128GB iPhone 13 Pro now costs 22,000 yen (~$162) more than before at 144,800 yen (~$1,069).

So iPhone prices in Japan were even lower than in the United States before this currency adjustment. Japan’s local currency has seen about 15% loss of its value compared to the US dollar in the last three months, so that is the basis of the iPhone pricing changes.

 

[JackLeBoul]

this chart its pointless. if swiss apple prices are similar to those in EU or US, that's fine. Do u expect to have a 70% cheaper iphone only because CHF gained +70% over USD in TWENTY years? This proves nothing

What do you mean pointless? I work as a currency trader

Apple always raises it prices when a country's currency drops against its base currency (USD).
Last time it did so with the Turkish Lira a few months ago. Why, because it need to repatriate those revenues in USD and can not / will not expose itself to currency losses. (Apple does generally not engage in currency hedging)

The Swiss franc has for 20 years have gone up against the USD, yet our price ratio to US store has stayed the same.
2002: 1 USD = 1.75 CHF
2022: 1 USD = 0.95 CHF

 

[Apple Mac Daz]

Dreading UK pricing on the 14 series

 

[JackLeBoul]

Apple did not raise prices. They adjusted for current exchange rates due to currency fluctuations. BIG difference.

True, but it tend to work one way only. Anyone remember the last time Apple reduced prices because of exchange rates. (in the 25% range?)

 

[TimmuJapan]

Well, this totally sucks for all of us in Japan. 🫤

 

[funkypepper]

Turkey: First time?

 

[Mr. Dee]

Let’s hope they don’t do the same in North America. I still need to pick up the iPhone SE 3 for my mom later this month.

 

[Apple Knowledge Navigator]

“You’re paying for it wrong!”

 

[ian87w]

In my country, the iPhone 11 is now being sold for less than the 2022 SE. $500 vs $535.

Yes, Apple is selling the 64GB 2022 SE in my country for $535.
and yes, the 64GB iPhone 11 magically matched up with US MSRP.

 

[ian87w]

Well, this totally sucks for all of us in Japan. 🫤

Japan actually has been enjoying cheaper iPhone prices for the longest time. Japan is one of the sources for many buyers from Asia to buy iPhones, especially the Chinese. So you guys had had very good run for a while.

 

[ian87w]

Inflation has historically been quite low in Japan. The issue currently is the tumbli value of the yen, went from like 109 JPY per dollar to 135. So this is Apple adjusting.

But of course, Apple will never adjust back when the currency regains its value. So it's basically a price hike.