Prices of iPhone 7 models and other Apple products hike in the UK after Brexit

Prices of iPhone 7 models and other Apple products hike in the UK after Brexit
Weaker pound and currency turmoil post Brexit vote has pushed the prices of Apple products up across the board. This goes not only for the new iPhone 7 and iPhone 7 Plus models – which are priced at £599 ($800) and £719 ($960) respectively – but for other products of the brand as well, including Macs, peripherals and accessories.

For reference, last year's iPhone 6s and iPhone 6s Plus went on sale in the UK for £539 ($720) and £619 ($826) for their base models respectively. Although this year's base models have 32 GB of internal memory, instead of 16 GB, the prices for the US market remained the same as those for the previous generation, despite the increased storage capacity. The price hike has also affected the iPad Pro, which now costs £549 for the 32GB 9.7-inch model, up from £499, and the Apple Pencil (currently at £99, up from £79), among other products.

Price adjustments for certain markets are nothing new, and are usually driven by currency fluctuations. Apple is a US-based company that does all its accounting in US dollars, meaning that when the value of another currency drops against that of the dollar, Apple has to make price adjustments, in order to compensate for the difference. On the other hand, if a foreign currency's value goes up, then the prices are adjusted accordingly, and as a by-effect, to the benefit of the consumer.

Global currency fluctuations can be a major contributor for financial woes, even for big players such as Apple. Earlier this year, after the company's profits took a drop following a record-breaking run in Q1 2016, CEO Tim Cook blamed unfavorable developments in the global financial system for slow-down. In his words, "extreme conditions", such as the slowing economies of key markets, along with world-wide currency fluctuations, have both played a role in decreasing Apple's profits.

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14 Comments

1. sarcastic_nerd unregistered

I don't understand why the price should change in USD since the price change should happen due to the change in exchange rate.

2. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

And you are sure this is because of brexit and happening across all of Europe?

4. TerryTerius unregistered

Certainly seems that way. IIRC, they said they would possibly have to raise prices if Britain left before the vote even happened. Though I could be thinking about something else.

7. Jimrod

Posts: 1605; Member since: Sep 22, 2014

Basically, any possible excuse for a price rise and the big companies will do it.

3. RoboticEngi

Posts: 1251; Member since: Dec 03, 2014

NOT happening...

5. ebilcake

Posts: 1231; Member since: Jul 16, 2016

Brexit gets blamed for all price increases now, even when it has nothing to do with it.

11. V.vvvv

Posts: 1; Member since: Sep 08, 2016

It has so much to do with it... the British pound dropped to very low rates after brexit and hasn't recovered since then. EDIT: same thing will happen with every product in UK

6. NoAllegiance unregistered

I had no idea we were in the year 20016.

8. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Yes its the 200th century and the 16th year of that century...lol /S

9. Zeeya

Posts: 331; Member since: Mar 17, 2013

Totally bulls**t...!

10. Fona13A unregistered

Because the political state has something to do with a price hike and not just Apple being Apple?

12. tnuc2014

Posts: 294; Member since: Sep 12, 2014

We should boycott Apple products. They would soon rethink their greedy pricing strategy. I hope they have to pay every single Euro of their tax evading fine in Ireland. I love Apple products, I enjoy the launch events and admire the marketing but I don't like the company and stench of greed which hangs around them.

13. tnuc2014

Posts: 294; Member since: Sep 12, 2014

Come on Huawei there's a real opportunity for you here. Don't do a Samsung and try to push your products into the premium price sector. Show these greedy buggers what can be done and take market share from both of them.

14. tnuc2014

Posts: 294; Member since: Sep 12, 2014

They already charge the same in GBP as the USD price which inflates their profits even more so they don't need to do this. It's all about them maintaining their huge margin and not wanting to take a hit because of currency. I'm pretty sure we won't see price adjustments the other way when the pound recovers against the dollar though.

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