- Apple increased the prices of its latest iPhones in some of its key markets, including China, Japan and India, while keeping prices the same in the United States
- This comes at a time when Apple is trying to revive growth amid an overall slowdown in the smartphone market as it targets premium users in countries like India, which has become a big focus for the Cupertino giant.
- In China, which accounts for nearly 20% of Apple’s total sales, the company increased prices on almost all iPhone 15 models.
Apple CEO Tim Cook holds up a new iPhone 15 Pro during an Apple event on September 12, 2023 in Cupertino, California.
Justin Sullivan | Getty Images
Apple increased the prices of its latest iPhones in some of its key markets, including China, Japan and India, while prices in the United States remained the same
This comes at a time when Apple is trying to revive growth amid an overall slowdown in the smartphone market as the company targets premium users in countries like India, which has become a big focus for the Cupertino-based giant.
Apple launched the iPhone 15 series on Tuesday. In the US, prices remained the same for all devices and different storage configurations compared to the previous generation iPhone 14.
But in China, which accounts for nearly 20% of Apple’s total sales, the company raised prices on almost all iPhone 15 models. The basic versions of the iPhone 15, iPhone 15 Plus and iPhone 15 Pro Max remained the same. But Chinese customers pay more for higher storage options. For example, the 512 gigabyte version of the iPhone 15 has increased by 300 Chinese yuan ($41) compared to the iPhone 14.
In India, Apple has kept the prices the same for all versions of the iPhone 15 and iPhone 15 Plus. However, the prices for all versions of the iPhone 15 Pro and Pro Max have been increased. The iPhone 15 Pro in India now starts at 134,900 Indian rupees ($1,627) versus Rs 129,900 for the iPhone 14 Pro – an increase of 5,000 rupees, or about $60.
However, all versions of the iPhone 15 Pro Max are Rs 10,000 more expensive than the corresponding iPhone 14 Pro Max model.
India has become a big focus for Apple this year. Chief Executive Tim Cook visited the country in April when Apple opened its first physical stores there. Apple has also ramped up production of its iPhones in India.
CNBC reached out to Apple and asked about its iPhone 15 production plans in India.
The rise in prices in both India and China can be partly explained by the fact that their respective currencies, the Indian rupee and Chinese yuan, have depreciated against the US dollar over the past year. This means that both currencies can buy fewer US dollars. So Apple makes up for it.
In India in particular, the Pro models are likely to be imported rather than manufactured locally and are therefore subject to a high import tax.
The price increases are also quite moderate and mainly affect the more expensive models, which is unlikely to have any impact on consumer sentiment.
“Consumers who buy premium smartphones are much less price sensitive, not to mention that the financing option and trade-in are very well established in these markets,” Nicole Peng, senior vice president at market research firm Canalys, told CNBC.
Meanwhile, Apple has increased the price of every iPhone 15 model in Japan.
Apple’s pricing strategy for the iPhone 15 was cautious. The price increases were not particularly strong. That’s because Apple needs to tread carefully after iPhone sales fell 2% year-on-year in the June quarter, reflecting an overall slump in smartphone sales worldwide. There are still headwinds for the smartphone market this year. Counterpoint Research expects total smartphone shipments in 2023 to decline 6% year-over-year to 1.15 billion devices.
“Globally, Apple shipments are expected to grow just 1% for full-year 2023. Therefore, higher prices, particularly targeted at consumers in the more resilient and affluent segment, could help support Apple’s sales in the challenging market environment,” Will Wong, senior research manager at IDC, told CNBC.
Apple has offset some of the price increases with price cuts elsewhere.
In the UK, Apple has reduced the price of all iPhone 15 models compared to the iPhone 14. For example, the iPhone 14 started at £849 ($1,059), while the iPhone 15 cost £50 less at £799.
Meanwhile, Apple has cut the price of the older iPhone 14 in China, according to its website.
“A lower price for older models like the iPhone 14 is a good strategy as it helps appeal to consumers who are price-conscious but still hoping for a premium branded phone,” Wong said.
“And while the new iPhone 15 series is aimed at consumers with more budget, both the new and old series could help expand the user base.”