Australians will pay up to $280 more for the new iPhone, but blame the falling Aussie dollar

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Nanjing Night Net

Australians will pay over 20 per cent more for the new iPhone compared to the last one, but the fall in the Aussie dollar’s buying power against the US dollar is to blame.

On the ticket price alone, it looks like Australian consumers are being slugged by Apple with a price hike that will feed nicely into its already whopping profits. On the top line model, for example, we will pay $280 more than we did for a comparable model last year when the iPhone 6 was released.

The iPhone 6s Plus 128GB launched on Thursday costs $1529, up from $1429 for the comparable 2014 model. The basic 16GB model is $210 more, while the models in between are $240-$250 more than their iPhone 6 counterparts last year.

But when Apple launched the iPhone 6 this time last year, the Australian dollar bought 93 US cents. Today, it buys 69 ¢.That’s a 24 per cent fall. It means the price rises on its latest iPhone in Australia will add little if anything to Apple’s already healthy profit margins – net profit is on track this year to top $US50 billion, which would be the biggest in corporate history.

Think of it this way: if Apple sold us the new models at the same price as last year’s models, the money we paid into its tills would be worth 24 per cent less to it in US currency – or, if you like, buy it 24 per cent fewer US goods – than it would have bought last year. So the price increases in Australia ranging between 22 per cent and 24 per cent on the different models merely compensate Apple for the loss in value from the Aussie dollar.

The iPhone is Apple’s biggest revenue driver, making up nearly two thirds of its revenue in the last quarter.

The least expensive model, with 16GB of storage, will cost $1079, which puts the ticket price on the basic model past the $1000 mark in Australia for the first time. There are three more price points beyond that.

The iPhone 6s with 64GB of storage and the physically larger iPhone 6s Plus with 16GB both cost $1229.

The iPhone 6s with 128GB of storage, at $1379, costs the same as the larger iPhone 6s with less storage at 64GB. The large model with the most storage (128GB) costs $150 more.

Whether or not the iPhone 6s represents better value for money than the iPhone 6 is a separate question. Australian users will be able to answer this for themselves when they test out its new or enhanced features – improved camera, speedier processor, and the new 3D Touch feature that lets users make different commands and reach shortcuts and menus by pressing down harder or softer on the screen – after the Australian release date of September 25.

This story Administrator ready to work first appeared on Nanjing Night Net.

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