Price hike ahead for UK iPhone 7 buyers?

Discussion in 'iPhone' started by OllyW, Jun 30, 2016.

  1. OllyW Moderator

    OllyW

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    #1
    As it looks like the low exchange rate of the Pound against the US Dollar could be here for a while due to the uncertainty around Brexit, I think we can expect a considerable price increase for UK buyers when the iPhone 7 is released.

    The entry level 16Gb models of the 6S and 6S Plus now cost £539 and £619. A straight conversion of the
    US prices of $649 and $749 at today's exchange rate means they should be selling for at least £579 and £668 including VAT.

    Apple are rich enough to handle the reduced profits in the short term but they will be sure to make the adjustments back in their favour when the new phone goes on sale, if not before. :(
     
  2. keysofanxiety macrumors 604

    keysofanxiety

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    #2
    I was thinking about this too, Olly. Let's hope it doesn't happen :(

    But if the Sterling gets properly strong against the US dollar, Apple will surely drop the prices! (not a chance)
     
  3. OllyW thread starter Moderator

    OllyW

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    #3
    To be fair to Apple they have adjusted their prices to suit a stronger Pound in the past but not with the same urgency as when it's the other way round.
     
  4. Matthew.H macrumors 6502

    Matthew.H

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    #4
    I really couldn't care less if the put the price higher on the 7. I have a 6S and won't be upgrading till at least 2017, maybe longer if the headphone jack gets removed from the phones. Increasing the price will hurt Apple more in terms of sales than it will hurt the customer. I bet a lot of people would just keep their current phones for longer if the prices goes up. Aside from chip and camera upgrades there are very few innovative must have new features appearing these days.
     
  5. BLUEBLASTER macrumors regular

    BLUEBLASTER

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    #5
    I'm pretty confident the pound will go back up again by September. It's just a lot of scaremongering.
     
  6. azentropy macrumors 68000

    azentropy

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    #6
    Yep, the pound is getting pounded. I'd expect an increase for the iPhone 7 if not price adjustments on current products even sooner.
     
  7. OllyW thread starter Moderator

    OllyW

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    #7
    I'm not so sure, the Pound has dropped even more since I started the thread and it now needs an extra £10 adding to my adjusted prices. :eek:
     
  8. Shirasaki macrumors 603

    Shirasaki

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    #8
    I believe the price will only £100 more or even crazier as, Rumor from Chinese site Weibo shows the price in RMB would be 8888 for top tier model, or not even the case.

    Brexit will be the trigger but not all.
     
  9. Hermes Monster macrumors 65816

    Hermes Monster

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    #9
    This is getting even worse ... currently $649 converts to £500, and those prices are pre sales tax (US) and VAT (UK) - add VAT and we're looking at a £600 base iPhone - eye watering.

    The pound has been losing ground on the dollar for a while now, and Apple have passed on the opportunity to increase iPhone prices (didn't they even go down £10?) so I can't imagine them going much longer without a hike to at least £579 or something.
     
  10. StuMcBill macrumors 6502

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    #10
    Yeah, not good I agree. I can see prices for a lot of items, not just iPhones going up very soon. OnePlus increased their prices today to account for Brexit!!

    I'm actually hoping that Apple introduce the iPhone Upgrade Program to the UK this year.
     
  11. Hermes Monster macrumors 65816

    Hermes Monster

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    #11
    I've just said the same thing in another thread, it would solve so many "worries" about buying and upgrading
     
  12. OllyW thread starter Moderator

    OllyW

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    #12
    The pound is now worth 19% less than it was when they set the price last September so if they wanted to maintain the same profit margin it cold be as high as £639. :eek:

    I think they will need to be sensible and keep it below £600 to prevent sales being wiped out.
     
  13. maflynn Moderator

    maflynn

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    #13
    Hopefully with some time before the 7 comes out, the Pound will stabilize, and the price increase will not be severe.
     
  14. OllyW thread starter Moderator

    OllyW

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    #14
    It would be welcome but I think the uncertainty about Brexit won't go away that soon.
     
  15. maflynn Moderator

    maflynn

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    #15
    No, but I do think the markets will settle down, nothing has changed in terms of economics, and I doubt very much it will. There may be more treaties needed, but Europe is a major partner to the UK, I can't see that changing even with brexit. I'm not there, so I'm saying it from the comfort of my home, but I'm hoping as time goes on, things will settle down.
     
  16. Hermes Monster macrumors 65816

    Hermes Monster

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    #16
    Indeed, the annoying thing is that nothing has actually happened yet, other than an extreme show of hands!
     
  17. OllyW thread starter Moderator

    OllyW

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    #17
    All the financial experts expect it to stay low or go even lower at least until the new year but at this stage I don't think anyone really has a clue what lies ahead over the next couple of years.
     
  18. maflynn Moderator

    maflynn

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    #18
    Yeah, I'm no financial expert, but I hope things won't be too severe.
     
  19. Hellhammer Moderator

    Hellhammer

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    #19
    If Brexit goes through, UK will no longer be part of the single EU market. That means tariffs on exports, and hence the export sector in the UK will plummet and that's mainly what is lowering Pound's value at the moment. I can't see the Pound going up anytime soon, unless there's a new referendum and people vote yes. Otherwise uncertainty will stay with us for at least another couple of years before the new treaties have been signed, and even then the Pound is very unlikely to go back to its "normal" value.
     
  20. maflynn Moderator

    maflynn

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    #20
    I understand that, but I also believe UK, will negotiate treaties and such, to cushion the blow. We in the US have various treaties with other nations/regions that don't impose tariffs, so its not out of the realm of possibility.
     
  21. OllyW thread starter Moderator

    OllyW

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    #21
    It's the uncertainty in the meantime that will keep causing us problems. We still haven't formally invoked Article 50 to give notice of our intention to quit the EU and start the two year leaving process.
     
  22. IFRIT, Jul 11, 2016
    Last edited: Jul 11, 2016

    IFRIT macrumors 6502a

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    #22
    The UK will still most probably be in the EEA which is outside the EU but inside the single market. If not hopefully we can get a deal with the US as the US is our biggest single trading partner and we are the biggest for the US in Europe.
     

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