TECH DIGEST- Apple announced it will increase the price of apps and in-app purchases in South America, the Euro Zone, and other regions that are suffering from inflation and currency changes.

Due to inflation and declining global currency values, Apple plans to raise the cost of apps, in-app purchases, and subscriptions for iPhone and iPad users. People in a number of nations, including France, Germany, Sweden, Egypt, Japan, Pakistan, and Vietnam, will be impacted by the change. Users of the US App Store don’t seem to be impacted.

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The adjustments will take effect automatically in October, according to a message Apple sent to app developers late on Monday. For instance, in the majority of countries that use the euro currency (designated by the symbol “€”), an app that was once 0.99 euros in price would now cost 1.19 euros. In Vietnam, Apple said, it is also changing prices in response to new tax rules there. “Your proceeds will be adjusted accordingly,” Apple told developers.

Apple stated that the modifications won’t affect automatically renewed subscriptions, but it added that developers might opt to either maintain existing prices for current clients or increase them to reflect the modifications.

Apple’s price increases are the most recent indicator of economic turbulence in a time of rising inflation globally, which is partly due to skyrocketing energy costs due to Russia’s conflict in Ukraine. In order to reduce borrowing and spending, many nations have implemented higher interest rates in response to rising prices. Theoretically, prices would decrease as demand decreased. During all of this economic uncertainty, currencies all across the world have moved as well. For instance, the value of other nations’ currencies has decreased in comparison to the US dollar, as has the value of the euro.

Apple occasionally modifies the prices of its App Store, but this adjustment comes as the tech giant releases its newest smartphones, including the iPhone 14, which starts at $799, and the iPhone 14 Pro, which starts at $999, as well as amid a period of economic instability. For the most part, Apple has maintained those devices’ prices from a year ago. This week, Apple is also launching the Apple Watch Ultra, a new wearable built for extreme sports that costs $799, roughly twice as much as its basic Apple Watch Series 8 model.

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TECHDIGEST – The two top phone manufacturers in the world, Samsung and Apple are cutting their phone production for this year as demands decrease due to high inflation and the ongoing Russia-Ukraine war.

While Apple cuts production at low to mid-range prices, Samsung Electronics is said to have cut production not only for mid- to low-end models but also for flagship (high-priced mobile phone) models, a Korean publication reports.

Apple had earlier in March announced plans to reduce the production of iPhone SE (mid-low-end model) by 20% compared to its original plan. This is because the demand for mid-to-low prices is decreasing due to high prices, and the supply of parts is also being disrupted.

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The Korean report quoted an official from a Samsung Electronics partner company as saying: “Recently, Samsung Electronics received a call to reduce the order volume of smartphones from the current target of 310 million units to 280 million units.”
Shinhan Financial Investment also analyzed that Samsung Electronics recently lowered its annual smartphone production forecast for 2022 by about 10% to 270 million units. After producing 300 million units in 2017, Samsung Electronics has stayed in the mid-to-late 200 million range, and set a goal of producing 300 million units this year ‘in five years’.

Park Hyung-woo, a researcher at Shinhan Investment Corp., said, “As of May, a strong inventory adjustment is confirmed.” “Smartphone production in May is expected to decrease by 35% compared to the average in January-April.”

Samsung Electronics’ parts makers are also expected to take a hit. It is known that Samsung Electronics has recently revised the order to reduce the amount of supply by up to one month to the parts maker.

Samsung Electronics announced to parts makers that it intends to restore the reduced order volume when a new foldable smartphone is released in the second half of this year.

Source : Nairametric

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