Apple once again broke its own record in iPhone sales in the first quarter of this year. However, during his last earnings call, he said that even if he advances this quarter at current prices, he may increase the prices of all devices, especially iPhone models, in markets outside the US in the next quarter. Here is why…
Why will Apple raise iPhone prices?
Apple clarified the revenue and profits that went into its vault over the past year. The company said it saw revenue growth of 9 percent year-on-year, with $97.3 billion in its coffers. He listed $25 billion of this as net profit.
So on average, Apple pocketed more than $250 in net profit for every $1,000 product it sold. The rest was distributed to many areas, especially the cost of the device, logistics, store and employee expenses.
But it is also trying to deal with some problems in the market. For this reason, Apple has clearly stated that it can increase the prices of the iPhone 14 series, which will be introduced in the coming months. The company shared the reason for this situation with the shareholders during the statement it made.
First of all, it was stated that the component shortage has now reached a critical level. After that, it was stated that the factories were shuttered due to the tight COVID-19 closures that the Chinese government still continues to implement. In addition, the weakening of the exchange rate and the cessation of sales to the Russians were also cited among the reasons.
In fact, when the previous models were introduced, Apple, which added 5G support to its devices, was expected to raise prices between 50-100 dollars. But instead, by removing the adapters in the box, he balanced the situation somewhat.
In addition, Apple has the highest profit/cost ratio per product in the entire smartphone market. Therefore, analysts suggest that the company can actually continue its sales without a price hike.
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