Precedent of Price Reduction in Europe Amid Currency Depreciation
Won-Dollar Exchange Rate Surge Not Reflected in Korea's Situation
"Need for Explanation on Launch Country Classification Criteria and Pricing Policy"
Apple's new iPhone 15 series domestic sales prices have not been adjusted despite the recent decline in the won-dollar exchange rate, leading to criticism that Apple is profiteering in the Korean market.
Price Increase When Exchange Rate Rises, 'Ignoring' When It Falls?
On the 5th, Park Chan-dae, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee from the Democratic Party, stated, "When the iPhone 14 series was launched last year, an unreasonable situation occurred where the first and second release countries froze their prices, but only Korea, the third release country, raised prices due to the rising exchange rate." He added, "However, when launching the iPhone 15 series this year, Apple did not lower the prices despite a significant drop in the exchange rate and kept them unchanged."
He continued, "Moreover, in countries like the UK and Germany, prices were reduced by 50 pounds and 50 euros respectively compared to the previous model considering the exchange rate, but Korea maintained the existing price level despite the lower exchange rate than last year, effectively putting domestic consumers in a situation equivalent to a price increase."
He further explained, "Even considering the high exchange rate at the time of the iPhone 14 series launch (a peak of 1,445 won as of September 30 last year), the exchange rate applied to the Korean price was an expensive 1,552 won on average. In fact, the 1,445 won rate was a rare situation that occurred only once in the past 10 years. If Apple had not neglected the Korean market, would it have been able to operate such a bold pricing policy?"
Three Times Actual Increase in Battery Replacement Costs... "Detailed Explanation from Apple Needed"
He also criticized Apple's battery replacement cost policy.
Park said, "In early March this year, Apple raised repair prices for all models except the iPhone 14 series, with Korea seeing a 43% increase, which is higher than the 29% in the US and UK and 31% in Japan. At the end of March, as part of the compensation measures following the Fair Trade Commission's acceptance of Apple's voluntary corrective action regarding its 'power abuse,' the 10% discount on domestic iPhone repair costs that had been ongoing for a year ended, effectively resulting in two price increases in March alone."
He added, "Recently, Apple changed its product repair policy and raised prices again within six months. As a result, through three battery replacement cost increases this year, the iPhone 13 and earlier series have seen about a 63% increase, significantly increasing the burden on consumers."
He criticized, "In Europe, battery replacement cost increases are at the same level as in the US, but in Korea, Apple is mocking consumers by applying excessive increases without specific criteria. In September, repair costs in the US, Europe, and India were frozen, and the UK even lowered battery repair costs, so a detailed explanation from Apple is needed as to why Korea’s costs were raised again."
Park concluded, "Apple needs to show efforts to respect Korean consumers with the dignity of a global company. For consumers' right to know, Apple should transparently disclose the criteria for classifying new device launch countries and pricing methods, and especially operate policies that do not discriminate against Korean consumers in any form."
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