Kuo: iPhone 14 Plus Pre-Orders Worse Than iPhone 13 Mini, Product Strategy 'Fails'

[hans1972]

Holy crap! +71% in a decade? Why? Oil prices or something? How has that affected Apple pricing in Norway? I had no idea it was that bad.

The (central and local) governments will have record income from energy production (oil, gas, hydro electric) this year. It's been estimated to be about $50,000 per person.

As an economy, Norway is tiny and based on commodities, and very cyclical. In uncertain times, investors flee from small currencies to safer places like the US dollar.

The affect on Apple prices is something like 50-100% more expensive compared to the US depending on the product and model. It doesn't help with a VAT rate of 25%.

 

[bob24]

I agree. I regret having given up this phone.

Yep, upgraded from an 11 Pro to a 13 Pro last year and Apple has crossed my limit in terms of size and weight. I am actually considering getting as 13 Mini as if next year‘s models aren‘t getting a bit smaller and lighter compared to this year, there will be nothing I want to buy.

 

[EugW]

Why do you think that has just been triggered now versus last year or the year before?
The whole "smartphones are mature" argument has been around since iPhone 5.

While your statements are true to an extent, upgrade cycle times have gradually increased over the years and it appears they have also been plateauing more recently.

Aside from other factors, this makes sense from the technical point of view, since SoCs and feature set have progressed to the level that many people don't really care as much about upgrades. I personally could use an iPhone XS Max as my full time phone no problem.

 

[_Spinn_]

Seems a little early for doom and gloom but if sales stay lower than the Mini that’s not good.

 

[EugW]

Seems a little early for doom and gloom but if sales stay lower than the Mini that’s not good.

No chance at all of that happening.

 

[femike]

Glad sales are low. It deserves to be.

 

[GhostRaider]

Was to be expected. I mean everyone’s waiting on USB C port and Touch ID. Other than that not much of a reason to upgrade.

 

[rumz]

I bought my mother a 12 Pro Max in 2020 purely for the larger screen size. She was due for an upgrade and always had the "Plus" phones (for larger text / legibility). I don't think there's actually a comparable, clear demographic for the "mini", though maybe there is.

 

[bob24]

Was to be expected. I mean everyone’s waiting on USB C port and Touch ID. Other than that not much of a reason to upgrade.

Count me out on Touch ID, I am perfectly happy with Face ID.

 

[ghanwani]

You do know there were folding phones 25 years ago right? It’s not a wow factor. No one wants a 2 inch thick brick in their pockets

The Galaxy Flip phones are a hit--almost everyone I know on Android seems to be getting one. That one is a game changer. As for folding phones -- those trying the Galaxy Fold 4 think it's a keeper just because of how much they can do with it. I think the tech, both hardware and software, wasn't ready until now. But this version and on, it's ready.

 

[turbineseaplane]

The Galaxy Flip phones are a hit--almost everyone I know on Android seems to be getting one. That one is a game changer. As for folding phones -- those trying the Galaxy Fold 4 think it's a keeper just because of how much they can do with it. I think the tech, both hardware and software, wasn't ready until now. But this version and on, it's ready.

Don't worry -- once Apple makes a flip and/or fold phone, suddenly the narrative around here will do a 180

 

[run1976]

The 6.7" screen is the biggest upgrade in years. Main problem is cost if you're buying in Euros.

If you bought a 12 Pro Max two years ago, it cost you 1269€ in Germany with 256gb. If you are on a two year cycle a 14 Plus with 256gb will set you back 1279€ today. Who in their right mind would pay up for a downgrade in many respects? And it won‘t even look different. Accept for the backside where the third camera went missing…

 

[run1976]

You can justify it because the Euro is weaker and the USD is stronger. Causes prices to rise

I didn‘t know the iPhone was built in the US. Always thought they build them in China. Anyhow even the Americans get screwed by Apple. Prices should have dropped as the Dollar has been gaining value against the Yuan, Yen and many other currencies.

 

[EugW]

If you bought a 12 Pro Max two years ago, it cost you 1269€ in Germany with 256gb. If you are on a two year cycle a 14 Plus with 256gb will set you back 1279€ today. Who in their right mind would pay up for a downgrade in many respects? And it won‘t even look different. Accept for the backside where the third camera went missing…

I agree that would be a stupid purchase in that context, but that's the fault of the exchange rate, not the product per se. The 14 Plus would be great upgrade from the 4 year-old XR though.

I personally won't be upgrading my 12 Pro Max until 2024 actually, even though iPhone prices in Canada have not increased at all.

I didn‘t know the iPhone was built in the US. Always thought they build them in China. Anyhow even the Americans get screwed by Apple. Prices should have dropped as the Dollar has been gaining value against the Yuan, Yen and many other currencies.

I guess you are not aware, but the manufacturing contracts in China are reportedly in US dollars. I don't know about India or Vietnam, etc. but I would assume it's the same, since it's the same Chinese/Taiwanese companies.

 

[TracerAnalog]

What is on Apple is that even after factoring in the current exchange rates and taxes and fees, Apple’s prices are still about 10% higher in Europe than the US.

I don’t agree. The dollar went up 18% against the euro (year over year), plus 15% inflation means a whopping 35% increase due to inflation. Top it off with the typical 20% VAT rate in Europe, and you’ll find that the price difference is all but explained…

iPhone 14 Pro: $999 in the USA, and €1329 in the Netherlands, which is 33%.

Expensive? Yup…

 

[run1976]

I did not know that. I guess it will rain down money on Foxconn than. Still not sure if Apple underestimated the risk of increasing prices like that with consumer confidence in Europe and many other countries being record low. Maybe accepting a little smaller margin may have been the smarter strategy. Time will tell.

 

[tanyet]

I bought a mini and I like it but let’s not pretend the mini is a small phone. It’s a normal size for in a world of huge phones. Give me an iPhone Nano any day of the week. Remember when miniaturizing technology was the height of design?

 

[klasma]

I don’t agree. The dollar went up 18% (year over year), plus 15% inflation means a whopping 35% increase due to inflation. Top it off with the typical 20% VAT rate in Europe, and you’ll find that the price difference is all but explained…

No, it isn’t. I’m comparing the current US prices with the current Euro prices using the current exchange rate and current tax rates. The resulting net prices (i.e. without tax) are not the same. The Euro prices come out higher by more than 10%. With those prices, Apple is getting 10% more revenue in the EU than in the US for the same product.

 

[EugW]

I did not know that. I guess it will rain down money on Foxconn than. Still not sure if Apple underestimated the risk of increasing prices like that with consumer confidence in Europe and many other countries being record low. Maybe accepting a little smaller margin may have been the smarter strategy. Time will tell.

Yes I agree it might have made more sense for Apple to accept a little smaller margin.

But perhaps they've shied away from that since they've been burned before because of the exchange rate. I say "burned" loosely though since they only lost a few percent. Many years ago Apple pricing in Canada was actually cheaper than it was in the US, because over the course the year, Canada's dollar rose substantially against the US dollar. At one point the Canadian dollar was actually above par against the US, having risen something like 65% over the course of 5 years.

Unfortunately, since then, Apple seems to always build in a 5-10% price premium in Canada after the currency exchange rate.

No, it isn’t. I’m comparing the current US prices with the current Euro prices using the current exchange rate and current tax rates. The resulting net prices (i.e. without tax) are not the same. The Euro prices come out higher by more than 10%. With those prices, Apple is getting 10% more revenue in the EU than in the US for the same product.

How much more than 10%? That's not that far off what they do in Canada. That is around a 7% price premium which is the same as last year for Canada, since the Canadian dollar hasn't really moved since last year against the US dollar.

 

[TracerAnalog]

No, it isn’t. I’m comparing the current US prices with the current Euro prices using the current exchange rate and current tax rates. The resulting net prices (i.e. without tax) are not the same. The Euro prices come out higher by more than 10%. With those prices, Apple is getting 10% more revenue in the EU than in the US for the same product.

Like that you are right. I compare year over year, and conclude Apple has not increased the difference.

 

[turbineseaplane]

Remember when miniaturizing technology was the height of design?

I definitely do and definitely miss that era

 

[klasma]

Like that you are right. I compare year over year, and conclude Apple has not increased the difference.

That may be right, I didn’t analyze the old prices, but with the current exchange ratio the result is that the prices are getting ridiculous for the European market.

 

[4389842]

The headline is pure PR nonsense. People are not buying the phones, because Apple got too greedy and finally pushed the prices too high.

Here in Norway, we've seen multiple price hikes over the last 10 years or so. Apple products went from being fairly reasonably priced and accessible, to becoming overly expensive. I've basically stopped upgrading my Apple stuff, to get the latest and best performance, and now keep my Apple products as long as I can.

Funny, I just came back from a three week trip across Norway:

10 euros for a lager (minimum), 6 or more for a latte, no chance at eating out for less than 50 euros per person (no starters or dessert!), 18 for an (average) burrito and I ended up paying 50 euros per day for the mere privilege of parking my car in Oslo… streets filled with Taycans, eQC’s, fat e-Trons and other nice EV’s.

Made my purchase of a 14 Pro Max seem good value by comparison: only 10 days of parking, 150 beers after trade in or 100 burritos without ! 😂

It’s really striking in that context, Apple products are perceived ‘expensive’ knowing e.g. food and drink are at least three/four times as expensive as in most other EU countries.

 

[Muceda]

W-E W-A-N-T T-H-E M-I-N-I B-A-C-K

#wewanttheMINIback

The line up should have been:
Iphone Mini 14 with dynamic Island
Iphone 14 Pro with dynamic Island
Iphone 14 Pro Plus w/ dynamic Island

3 models thats it … then on March
Iphone SE**

Tim, trust me!

 

[Mrkevinfinnerty]

Well the non pro phone has been pretty much identical for the last three year add in the European price gouging and you can't be too surprised.

Apple have had an unbelievable run but they've gotten greedy, same deal with the App Store if they would've taken a reasonable cut they could've made bank for the long haul but they got greedy and now regulation is looming.

Pigs get fat and hogs get slaughtered.