The effects of the UK’s vote to leave the EU are showing up in the price of Apple $AAPL’s products. The cheapest iPhone 7 is 11% more expensive than the iPhone 6S when it was launched last year. The larger iPhone 7 Plus is 16% more expensive than the 6S was originally.
The likely reason for the price is the weaker British pound, which has taken a beating since the UK voted for Brexit on June 23. The pound fell by as much 14% against the US dollar in the days immediately after the result was announced, and is now trading at about 10% below the dollar compared to pre-Brexit rates.
Here are the price hikes:
The cheapest iPhone 7 and 7 Plus have double the storage capacity of the previous generation of phones, but prices weren’t raised in the US. We’ve contacted Apple for clarification, but haven’t heard back yet.
Buying an iPhone 7 or 7 Plus wasn’t a cheap proposition to begin with. The cheapest iPhone 7 is going for £599, which translates to $799 at current rates. That’s $50 more than what Apple’s charging US customers. Add the optional wireless earphones that Apple’s pushing with its latest models, which go for £159 ($212), or $53 more than the US price tag, and the costs pile up.
iPhones aren’t the only things getting more expensive for British Apple customers. The Verge reported that some iPads, the Apple Pencil, and the Apple Watch sport strap also had their prices raised.
Perhaps the only saving grace from yesterday’s (Sept. 7) announcements is that Apple’s iPhone Upgrade Program, a payment plan that spreads the cost of buying the new phones, is launching in the UK. British Apple fans will need all the help they can get if they want to enjoy Apple’s “courageous” new world.
