How Apple is using the crisis to drive up its prices

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“We are the apples, you are the pears”. In September 2012, the Guignols de l’Info made fun of the pricing policy of Apple, which had just launched the iPhone 5 at a price deemed excessive for the time. Ten years later, the iPhone 5 would look almost cheap.

As a crisis hits consumers around the world, Apple is undoubtedly the Tech brand that benefits the most. Shortage of components, cost of energy, raw materials, devaluation of the euro against the dollar, all the excuses are good to justify the significant increase in all of its products.

Focus on the soaring prices of Apple products.

Apple invents the $3,000 iPad

iPad Pro 2022

© Apple

Mid-October, Apple unveiled its new line of iPads. All are offered at much higher prices than their predecessors. The iPad Pro with the new M2 chip even reaches 3000 euros in its most muscular version (2 TB of storage).

More significant is the increase in the price of its cheapest iPad. The entry-level model, now colorful, now costs 589 euros in its most accessible version. The previous generation was launched at 389 euros!

This cold shower, Apple fans have already experienced it in September 2022, when the new iPhones were announced. While he prides himself on marketing them at the same price as the previous generation in the United States, Tim Cook is catching up outside his land.

In France, the iPhone has never cost so much. So much so that no new model (even the standard iPhone 14) is offered below the 1000 euro mark. And we can’t really say that the iPhone 14 brings major innovations compared to the iPhone 13. The only new product from Apple that is more affordable is its Apple TV 4K, announced at the same time as its iPads.

Older Apple products also cost more

test iphone se 2022 size

© Lemon squeezer

The arguments put forward by Apple would be acceptable (although) if the company had not taken the opportunity to also increase the prices of its old products. Traditionally, older generations see their prices drop when newer models are launched. Not this time.

Although it recycles many technologies (largely profitable since all this time), Apple has discreetly increased the price of its iPhone SE for example, which now goes above the 500 euro mark. The iPhone 13, still in the catalog, is offered at the same price as when it was released… a year ago.

Apple does even better with the iPad. The entry-level model, launched at 389 euros last year, now costs 439 euros. The iPad Air 5, launched at 699 euros at the start of the year, is now available from 789 euros. Yes, prices are rising, and not just a little.

Shortage and cost of production: come on…

iphone 14 plus range

© Lemon squeezer

To justify the price increases of its products, Apple puts forward questionable arguments. The shortage of components first, which would increase the production costs of the products. This is likely true for recent models, but chances are the company has enough inventory on older models to keep up with demand.

The American giant mainly explains these increases by variations in the euro/dollar rate, of the order of 1 to 1 at the time of writing. Problem: the company released this same argument in recent years to justify the higher prices in Europe than in the United States. However, before the crisis, the euro was stronger than the dollar. The euro/dollar rate has a good back.

No, really, no matter how hard you look, it is difficult to agree with the arguments put forward by the company. Everything leads us to believe that Apple threw itself headlong into this great opportunity to increase its margins.

It remains to be seen whether the public will still be able to buy its products. According to the latest figures from Canalys, the smartphone market has plunged 9% since this summer, when manufacturers began to increase their prices. That of tablets, largely dominated by Apple, is no better. And the predictions of the experts do not announce a rise for several months. With such prices, can we really be surprised?

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