Enlarge image
Journalists at the presentation of the new Apple smartphones: The iPhone 14 costs upwards of 999 euros in Germany depending on the storage space, the 14 Plus model at least 1149 euros.
Apple is asking 1299 euros and more for the iPhone 14 Pro, and at least 1449 euros for the 14 Pro Max model
Photo: JOHN G. MABANGLO/EPA
For some Apple fans from Germany it was a real price shock: Anyone who had hoped for a cheap entry-level model when the new iPhones were presented on Wednesday evening was bitterly disappointed: the iPhone 14 costs at least 999 euros even in the basic version - a whopping premium of 100 euros compared to the previous model.
Under the hood is the same processor as the iPhone 13, which was available for 899 euros when it was launched last year.
Bargain hunters even paid 100 euros less for the iPhone 13 Mini.
With prices well below the 1000 euro threshold, it is now apparently over for customers in Europe.
The situation in the USA is different.
There, Apple is sticking to its previous pricing policy.
Just like the iPhone 13 last year, the iPhone 14 costs $799 there again.
The offers cannot be compared directly, since the sales taxes of the respective states have to be added to the prices in the US Apple Store.
However, even with these taxes, a clear trend is emerging: In Europe, Apple is tightening the price screw, while iPhone costs remain the same in the USA.
What's going on there?
Apple is fine-tuning its image as a premium brand
Among other things, Apple has reacted to the weak euro.
From business circles it is said that the historic low of the euro against the dollar was taken into account in the pricing.
The higher prices in Germany, on the other hand, have no impact, according to Florian Stahl from the University of Mannheim.
"Inflation doesn't play a role in iPhone prices," he told SPIEGEL.
According to the economics professor, even higher energy or material costs are not included in the pricing: "In the premium segment, a few euros more in production is not significant."
Stahl suspects that Apple is pursuing a long-term strategy.
"It's not about the current economic situation, but about the market position in five to six years."
According to the marketing expert, Apple itself hides costs for designers, engineers and programmers when setting prices.
"It's all about what the target group is willing to pay," he believes.
Stahl sees the different iPhone prices within Europe as an indication of this.
In France, for example, the iPhone 14 costs around 20 euros more than in Germany, while people in Hungary even pay around 130 euros more.
It is usual for the product price to be based on the customer's willingness to pay.
"It's the same with yoghurt," says Stahl.
In addition, the scientist observed in the iPhone price tactics that Apple is pursuing a clear goal.
The group therefore deliberately wants to set itself apart from competitors such as Samsung and Huawei, which would be fitting if it did not present a new mini model.
"Apple is positioned in the upper premium segment," says Florian Stahl.
"Middle-class models no longer fit the market strategy." Mercedes also gives up the A-Class for the same reason.
»This group really milks Apple
«
Christian Proaño from the University of Bamberg takes a similar view.
The professor of economics tells SPIEGEL: "Apple goes above and beyond the crowd in the USA and China." That's why the prices there have remained unchanged.
In other countries, he believes, the iPhone 14 profits should be achieved through higher prices – such as in Brazil and Turkey, where the entry-level model is sold for 1500 and 1700 euros respectively.
"The iPhone is a luxury item and a status symbol," says Proaño.
There are only a few people in Brazil and Turkey who can afford that.
"But this group really milks Apple."
According to Proaño, the different prices cannot even be attributed to the purchasing power in the respective countries.
This can be seen in Switzerland, where the iPhone 14 costs around 960 euros.
“Although the people there have a higher income, they are not willing to spend as much money on an iPhone as the Germans do,” says Proaño.
But even if long-term plans for the future are quite common: Florian Stahl considers it daring for Apple to ignore the current economic situation in Europe.
"It's questionable whether there are enough people who have money for a new iPhone and don't need the money for heating and other things," he says.
Apparently, Apple is taking the risk of losing market share while making more money with more expensive phones.
Florian Stahl also thinks it's quite possible that Apple's bet will work out.
After all, the company has been “excellently demonstrating for years how to drive up the reference price for a smartphone”.
