Apple may have to raise the price of the iPhone 14 outside the United States

Apple may have to raise the price of the iPhone 14 outside the United States

While the rest of the challenges are pretty self-explanatory, the rising power of the dollar and its higher exchange rate towards local currencies is a new twist. One Apple analyst – Chris Caso of Raymond James – thinks that Apple will be forced to raise the iPhone 14 prices abroad as a response to the weaker exchange rates:

Despite the fact that Apple’s Q1 revenue exceeded analysts’ expectations, CEO Tim Cook warned that Apple is seeing some negative trends halfway through the current quarter, which could shave $4-$8 billion off its revenue. The main factors contributing to Apple’s financial underperformance this quarter would be the COVID-19 lockdowns in China, which affect Apple’s assembly lines, the loss of the Russian market due to sanctions, currency exchange misallocations, rising inflation, which leaves buyers with less and less disposable income, and general component supply shortages, which have plagued the industry for quite some time.

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. We assume revenue of ~$81B take these factors into consideration. 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. We think that sets September up well assuming China normalizes. 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.

While he still has an outperform rating on Apple’s stock, his $190 price target is somewhat lower than of most other analysts polled by Philip Elmer-DeWitt. When expressed in dollar terms, iPhone prices are way higher in most any other country that is not the US, so raising these tags further may further impact Apple’s iPhone 14 shipment schedule that may be weakened by a combination of the aforementioned factors anyway.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Humble Spring Sale 2022 Video Game Deals are now closed
Humble Spring Sale 2022 Video Game Deals are now closed
The Yakuza Remastered Collection (Yakuza 3,4,5 Bundle) – 10% off. For those unfamiliar with Humble Bundle, the company regularly offers different bundles of ...
Tchia’s Delay Can Be Softened With New Sea-Faring Gameplay
Tchia’s Delay Can Be Softened With New Sea-Faring Gameplay
The clip focuses on travelling across the open waters surrounding the archipelago in which the game takes place. You’ll be able to fully customise your boat, ...
The iPhone 13 is reportedly the most popular phone in Q1 2022
The iPhone 13 is reportedly the most popular phone in Q1 2022
Surprisingly, the list doesn’t include popular phones by OnePlus, Xiaomi and Realme. The list that Jeronimo has shared on Twitter reveals the names of the ...
Because Xbox passed on an exclusive Spider-Man game, PS4 games were released
Because Xbox passed on an exclusive Spider-Man game, PS4 games were released
Ong stated that Marvel was not happy with the quality of Activision’s Spider-Man games towards the end of their partnership. When Ong told Activision, “I’m ...
Despite the rush to deliver supplies, long fuel lines persist in Sri Lanka
Despite the rush to deliver supplies, long fuel lines persist in Sri Lanka
Tourism-dependent Sri Lanka, where India and China jostle for influence, is facing a dire shortage of foreign exchange, fuel, and medicines, and economic ...
There are no urgent plans to send extra funds to the PIF, according to the Saudi finance minister
There are no urgent plans to send extra funds to the PIF, according to the Saudi finance minister
The PIF received a $40 billion injection from the central bank in 2020, which Jadaan said was done on a “extraordinary basis” at the time. In February this ...
Despite supply problems and chip shortages, Kishida and Biden agree to strengthen economic security ties
Despite supply problems and chip shortages, Kishida and Biden agree to strengthen economic security ties
The two countries aim to build production structures in their own countries while sharing necessary components, as they recognise the importance of reducing ...
This Wednesday marks the start of the big PS Store Days of Play sale
This Wednesday marks the start of the big PS Store Days of Play sale
It will be interesting to see how the company handles any PS Plus discounts this year since new tiers PS Plus Extra and PS Plus Premium are, of course, right ...
SLST is valued at $385 million by Freddie Mac
SLST is valued at $385 million by Freddie Mac
Freddie Mac SLST Series 2022-1 includes approximately $345 million in guaranteed senior certificates and approximately $40 million in non-guaranteed ...
Oppo Pad Air is now available in India, with 2K screen and Android 12
Oppo Pad Air is now available in India, with 2K screen and Android 12
TATA IPL 2022 Live Streaming Apps Free: How To Watch Playoffs Online On Mobile And TVTATA IPL 2022 Live Streaming Apps Free: How To Watch Playoffs Online On ...
Show next
We will be happy to hear your thoughts

Leave a reply

Compsmag - Latest News In Tech and Business
Logo