Technology
Apple warning: iPhone prices could RISE this year – will you be affected?
APPLE may hike the price of its next iPhone outside of the U.S.
According to one expert, the iPhone 14 will cost more as a result of inflation and the loss of Russian revenue due to the war in Ukraine.
AlamyApple is rumoured to be releasing a new iPhone in September[/caption]
On top of all that, fresh Covid-19 lockdowns in China continue to slow assembly lines ahead of the device’s rumoured September launch.
The grim prediction was made by analyst Chris Caso from New York-based financial services firm Raymond James.
PhoneArena reported Monday that Caso warned of rising prices for the iPhone 14 range.
That means the new mobiles will cost even more than last year’s iPhones, which ranged in price from £679 to £1,049.
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Caso wrote in a note to investors that poor exchange rates are also contributing to what could prove to be a tough year for Apple.
That’s despite Apple last week posting strong results in its latest earnings report, with iPhone revenue up five per cent year-on-year.
“Apple posted a strong March quarter, but commentary implied incremental weakness in June driven by currency, the loss of Russia revenue, and the most significant impact coming from production issues driven by China lockdowns,” Caso said.
“We assume revenue of ~$81B take these factors into consideration.”
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Recent lockdowns in China have slowed the production of gadgets and microchips due to swathes of factories closing their doors.
According to Caso, any assembly line woes have a good chance of being resolved in time for the iPhone 14’s release in September.
However, poor exchange rates and the collapse of iPhone sales in Russia due to Apple boycotting the country are expected to affect prices for a longer period.
“The production issues ought to be transitory – and they occur at the best possible time of the year during the weakest seasonal period ahead of fall launches,” Caso said.
“We think that sets September up well assuming China normalises.
“We, however, consider FX and Russia to be more permanent, and now fear that Apple may need to raise prices in local currency when new products launch in the fall, if exchange rates don’t change by then.
“When that’s happened in the past, rising local prices have a negative effect on unit demand.
“Finally, Services are expected to grow but decelerate y/y, something we think that’s been anticipated but remains a factor.”
It remains unclear precisely how much higher iPhone 14 prices will be than iPhone 13 prices.
Apple hasn’t even confirmed it’s making the iPhone 14 yet, although it’s safe to presume that the device is in the works.
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It’s expected to come out in September or October and come with an upgraded camera on display.
According to rumours, four versions of the gadget will be unveiled by Apple.
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