The Apple series 14 iPhone came with a price increase for many international buyers as the tech company deals with the impact of a strong U.S. dollar and currency headwinds.
The reason Apple took the step to increase the price of phones in those markets has to do with currency fluctuations.
Foreign currency exchange is"a very significant factor that is affecting our results, both revenue and gross margin," Maestri said. Apple does hedge against its currency exposures"in as many places as possible around the world," he said, but those sorts of protections do start to reduce as the company needs to continue to buy new contracts.
While recent currency fluctuations versus the U.S. dollar are causing some international buyers to pay more for an iPhone, there have been instances where Apple instead absorbed those costs. "We've decided to go back to [iPhone prices] more commensurate with what our local prices were a year ago, in hopes of helping the sales in those areas," CookBut in 2022, Apple says it has not seen any drop off in demand in those markets. Maestri noted that it saw double-digit growth in India, Indonesia, Mexico, Vietnam, and other countries even in their respective reported currencies.
said that China sales of the four new iPhone 14 models over their first 38 days of being sold are down by 28% compared to the iPhone 13 models over the same period of time.iPhone 13: 1,349 Australian dollarsiPhone 14: 119,800 Japanese yenApple isn't the only company acknowledging the impact that currency headwinds are having on its business and pricing decisions.
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