The Extreme Inflation of Japan Impacts on iPhone Consumers

VIVA – Recently, the yen has fallen by 22 percent, making the latest iPhones very expensive and it has led to the used phones trading in Apple's main market. The fall of Japan's currency to a 32-year low against the dollar has squeezed consumers and accelerated a broader shift in spending in the world's number three economy.

As quoted from the Star website, November 8, 2022, industry observers said that Japanese shoppers have become more open to buying second-hand goods partly due to the rise of online auction sites.

In July, Apple drastically raised the price of the entry-level iPhone 13. While the regular version of the iPhone 14 debuted twenty percent higher than the iPhone 13, even as prices in the United States remained the same at around US$799 or IDR 12.5 million.

So, Japanese people who want a new phone but can't afford the price of the iPhone 14, which starts at 119,800 yen (Rp12.8 million), are replacing it with a used iPhone SE 2 in Tokyo's Akihabara electronics district for less than a third of the price.

"At over 100,000 yen, the iPhone 14 is too expensive and I can't afford it. It would be fine if the battery lasted for 10 years," Kaoru Nagase remarked.

The iPhone SE 2 has been released in 2020 but without dual rear cameras like the iPhone 14 which is considered to have a good balance between cost and features.

Although it declined to comment on this phenomenon, Apple mentioned in its annual regulatory filing last month that Japanese sales fell 9 percent in the period that ended September 24 because of the weakening of the yen.

Apple's Chief Financial Officer, Luca Maestri also admitted to analysts that the strong dollar has led to price increases for its products in some countries, but sales still grew by double digits in Indonesia, Vietnam, and other markets facing currency challenges.

Sales of used smartphones grew nearly 15 percent in Japan to a record 2.1 million in the last financial year and will likely reach 3.4 million by 2026, according to technology market research firm, MM Research Institute.