Apple may have to raise smartphone prices in France

The geopolitical situation could force Apple to raise prices for its next iPhone 14 outside the United States, something that hadn’t happened in several generations. The disappearance of the Russian market comes into question, but also the rise of the dollar against the euro.

As every year, the prices for the iPhone 14 in the US and Europe will not be identical, but the difference could be more noticeable in 2022 than in previous years. As you probably know, when Apple brought its $799 iPhone 13 across the Atlantic, it was not possible for him to put it on the market in France for 799 euros.

In fact, Apple must first apply a whole lot of taxes to the price of his deviceincluding, in particular, value added tax and the private copying tax, to name just a few Apply the exchange rate between the dollar and the currency of the country where the smartphone is sold. Precisely because of the recent rise in exchange rates, Apple could be forced to increase its prices in Europe.

The rise in the dollar could increase the price of the iPhone 14

According to Raymond James’ Chris Caso, Apple will be forced to raise iPhone 14 prices abroad in response to the weak euro. As a reminder, it is now several months that the dollar is heading towards parity with the euro due to the positions of the Federal Reserve of the United States (FED), the European Central Bank and the war in Ukraine. The dollar now costs the equivalent of 0.95 euros, compared to just 0.88 euros at the beginning of the year.

If we relate this rate to the price of an iPhone 13 at $799, This was worth 703 euros at the beginning of the year; today, with the new exchange rate, it is 759 euros.Apple had a strong quarter in March, but comments pointed to gradual weakness in June on currency, slower sales in Russia and the significant impact of production issues from shutdowns in China ‘ says the analyst. Apple notably announced record iPhone sales but forecast a $4 billion shortfall.

As per previous leaks, the iPhone 14 shouldn’t see its price surge across the Atlantic, but can definitely increase here. We also remind that Apple is considering setting up a new system that will allow you to rent an iPhone 14, but at the moment we do not know if it will arrive in France soon.

Source: Ramon James

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