What’s Behind Apple’s Japan Price Hike?
Apple (NASDAQ:AAPL) has recently been forced to raise the prices on its iPod and iPad devices in Japan due to the yen’s continued decline against the dollar. Bloomberg reports that Apple’s 16GB iPad price rose from 42,800 yen to 49,800 yen, which is an increase of about $70.
Similarly, the price of a 64GB iPad increased from 58,800 to 69,800, which is equivalent to about $110. The 128GB iPad model jumped from 66,800 yen to 79,800 yen, which is an increase of nearly $130. The iPad mini also became more expensive, rising approximately $40 from 28,800 yen to 32,800 yen, according to Apple Insider.
The 32GB iPod touch price increased by approximately $50 and the iPod nano price jumped almost $20, or 2,000 yen. The price of an iPod shuffle in Japan increased by 600 yen, or about $6.
The yen has been declining against the dollar ever since Japanese Prime Minister Shinzo Abe instituted his monetary easing policies that have been dubbed “Abenomics.” Earlier this month, the yen-dollar rate weakened beyond 101, the lowest level since April 2009.
Apple is not the only foreign company to raise its prices in Japan due to the weakened yen. CNBC notes that jewelry retailer Tiffany & Co. (NYSE:TIF) and German automaker Volkswagen AG have both recently raised the prices of their products due to changes in foreign exchange rates.
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