During the unveiling of the much-anticipated iPhone 15 series on Tuesday, Apple Inc. said its newest product line is in same price range as its previous models as long as the storage capacity is the same.
But not in South Korea. Korean consumers will have to pay more than their counterparts in the US and elsewhere for the same phones. Arguably, Koreans will find the iPhone 15 series smartphones the most expensive when they hit Apple stores in Korea next month.
According to Apple, the basic model of the iPhone 15 with 128 GB capacity is priced at $799 in the US and 1.25 million won in Korea.
Given the exchange rate of 1,327.8 won per dollar on Tuesday, $799 is equivalent to 1.06 million won, which means consumers in Korea will pay 17.9% more for the same model.
It should be noted that US launch prices exclude taxes while the Korean price tag includes taxes.
If 10% tax is added to the 128 GB iPhone 15, the US price comes in the range of 1.17 million won when converted to the Korean currency – still 6.8% higher than the same product in Korea.
The 128 GB iPhone Pro comes with a price tag of $999 in the US and 1.55 million won in Korea.
After a 10% tax and with Tuesday’s dollar-won exchange rate, $999 translates into 1.46 million won, meaning Koreans will pay 6% more than US consumers.
In premium models, the price gap is even wider.
The 256 GB iPhone 15 Pro Max will sell at 1.72 million won in Korea and $1,199 in the US, or 1.59 million won when converted to the Korean currency after tax, which is 8.2% less expensive than in Korea.
WON’S STRENGTH HURTS KOREAN CONSUMERS
When Apple announced the iPhone 14 series a year ago, the currency exchange rate was hovering around 1,380.4 versus the greenback. The Korean won has strengthened about 4% against the dollar over the past year.
“Apple has applied last year’s dollar-won exchange rates for the newest iPhones in the Korean market. Its claims that it is launching new iPhones at the same price levels as the iPhone 14 models sound rather hollow to us,” said a Korean consumer.
“Apple raises iPhone prices in Korea when the won weakens. But when the won strengthens, it doesn’t cut iPhone prices as much in Korea,” he said.
Some critics say Apple appears to be applying the exchange rates in its favor when setting iPhone prices for the Korean market given Koreans’ strong loyalty to iPhones.
According to Gallup Korea, Samsung Electronics Co.’s Galaxy series accounted for 44% of Korean smartphone users in the 18-29 age bracket in 2022, while Apple’s iPhones took 52% in the same group.
Write to Ye-Rin Choi at [email protected]
In-Soo Nam edited this article.
