Home
News
You are here

iPhone 16 Pro Max may ironically bring some respite from global iPhone price hikes

Updated: Aug 02, 2024, 2:46 PM

2comments

We may earn a commission if you make a purchase from the links on this page.

iPhone 16 Pro Max may ironically bring some respite from global iPhone price hikes

When Apple announced its iPhone 15 line prices last year, fans in the US breathed a collective sigh of relief. Despite the wide-ranging rumors that Apple will bump the price of the iPhone 15 Pro Max with two Benjamins because of the new Tetraprism folded optics zoom camera and the titanium body, none of the doom and gloom materialized.

In fact, the iPhone 15 Pro Max costs exactly the same as the 256 GB iPhone 14 Pro Max before it, as Apple's base storage now finally eschews the paltry 128GB tier. In France, however, an iPhone 15 Pro Max costs nearly EUR 1500, or more than $1,600, what gives?

iPhone 15 Pro: save $40-$620 with a trade-in at Apple.com

Apple offers its impressive iPhone 15 Pro at steeply reduced prices with the right trade-in. Right now, you can get this top-class smartphone for up to $620 off with an eligible device trade-in.

$620 off (62%) Trade-in

$379

$999

This offer is not available in your area.

iPhone 15 Pro Max: up to $620 off with a trade-in

With its groundbreaking chipset and high-class titanium frame, the iPhone 15 Pro Max is a real mobile gem. It's now available on Apple at an impressive trade-in discount of up to $620. Minimum trade-in savings amount is $40.

$630 off (53%) Trade-in

$569

$1199

This offer is not available in your area.

Global iPhone 15 pricing is outrageous

The perfect storm

There are plenty of reasons why iPhones sold in the US are some of the cheapest globally. Abroad, some of those prices are outrageous, especially compared to the local purchasing power. The example with France, given above, is not even the most egregious one and doesn't make it in the top 10 countries with most expensive iPhones.

Country	iPhone 15 Pro Max price in USD	iPhone 15 Pro Max price (local currency)
Turkey	$2,721	TL 89999
Brazil	$1,942	R$ 10999
India	$1,910	₹ 159900
Poland	$1,809	zŁ 7199
Denmark	$1,706	DK 11799
Sweden	$1,684	kr 17995
Norway	$1,652	kr 17990
Hungary	$1,635	Ft 599990
Finland	$1,618	€ 1499
Portugal	$1,618	€ 1499

Granted, the US is a huge market, and the iPhone is so popular here, often as a status symbol, that half of Americans are kitted with one, but that's not the whole story. It's not even just patriotism, like South Koreans donning Galaxy phones at more affordable prices.

The US has a very low import tariff structure on consumer electronics, so not only phones, but laptops and TVs are also comparatively cheap, for instance. Moreover, people are buying their phones mainly through their carriers, and in installments. This way the price isn't felt the same way as when purchased outright, so consumers could, as Tim Cook put it once, afford to pay off a phone for the price of their morning coffee.

Apple is, however, an American company, and the US is one of the most visible markets in terms of marketing reach, so it is pretty careful how it prices and positions the iPhone here. For the rest of the world, though, Apple is simply trying to maintain the margins between the price and production costs, while adjusting for import and sales taxes, as well as for currency fluctuations.

The reason for the high global iPhone prices compared to the US, Taiwan, or Japan, where Apple handset prices are lowest when expressed in USD, is a combination of all taxes plus the inflation rate and local currency fluctuation.

iPhone 15 Pro Max price in Turkey discounted to $2,500 | Image credit – Adil Khan/YT

Brazil, for example, was a longtime leader in iPhone prices. However, the combination of a 15% import duty with 7% state tax and 10% federal tax on top of it all doesn't really return the 80%-100% markup on the Apple iPhone there compared to the US. The inflation rate and local currency depreciation, however, are what Apple also takes into account when pricing its goods in a country, otherwise when both are high, it would be selling at cost.

This explains why Brazil passed the torch for most expensive iPhones to Turkey, whose average inflation rate last year was the whopping 53%, while its currency depreciated 28% in the first half of 2024 alone, forcing Apple to adjust its iPhone prices mid-cycle.

Global iPhone 16 Pro Max price may be a pleasant surprise

No 10% hike again

Thankfully, however, there are some signs that the iPhone 16 series may not be as expensive to buy as the iPhone 15 abroad. In the European Union, for instance, prices are much higher than in the US as there is a value added tax levied on imported electronics that can be more than 20% in certain countries.

Apple also adjusts for inflation and currency fluctuations, and the euro currency was depreciating against the dollar for two years straight. That, and the notable inflation rate made Apple price its iPhone 15 series about 10% higher than the iPhone 14 series in Europe, on top of pricing that was already elevated by import taxation.

After reaching a nadir of parity against the dollar, and even briefly falling below parity, the euro has now recovered against the dollar, from the doldrums that lasted nearly two years. Apple is also now complying with the new hardware and software rules and regulations of the European Union.

For example, it has already redesigned its iPhone lineup to ship with a USB-C data and charging port, instead of the Lightning one that was getting a bit long in the tooth anyway. It will also allegedly install a metal battery casing in the iPhone 16 series, making it easier to swap the pack in accordance with the new repairability rules, so the initial compliance investment is already done.

Moreover, it won't ship its iPhones with Apple Intelligence in the European Union due to local regulations, so it will have even less reason to raise prices given that it won't be the full iOS 18 experience there.

Globally, the average inflation rate is falling, too, with next year's inflation expected to be half of the peak 2022 rate, which saw Apple immediately jack up prices for the 2023 iPhone 15 series to offset the cost increases and currency fluctuations. In other word, the unprecedented lowering of the iPhone prices in India last week may be a harbinger of things to come for the iPhone 16 series.

With inflation rates abating and currencies stabilizing, we do not expect that Apple will have any excuse to, say, raise the iPhone 16 Pro Max price in Europe by 10% like it did with the 15 Pro Max, larger screen size or not.

View Full Bio

Daniel, a devoted tech writer at PhoneArena since 2010, has been engrossed in mobile technology since the Windows Mobile era. His expertise spans mobile hardware, software, and carrier networks, and he's keenly interested in the future of digital health, car connectivity, and 5G. Beyond his professional pursuits, Daniel finds balance in travel, reading, and exploring new tech innovations, while contemplating the ethical and privacy implications of our digital future.