Apple Inc. (AAPL) Increases Prices in this Market, Bad Move?

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In many regions of the world, Apple Inc. (NASDAQ:AAPL) is looking for ways to save consumers money. For example, Cupertino has offered an installment plan for consumers in India who are interested in buying an iPhone but unable to afford the total cost upfront. Subsequently, this has led to a 400 percent increase in sales over the past few months.

Apple Inc. (AAPL) to be Added to Several WisdomTree ETFsWith this in mind, you would think that Apple Inc. (NASDAQ:AAPL) would be looking for ways to do more of the same in other parts of the world. Unfortunately, this is not always the way things work. In some cases, prices have to increase and it doesn’t always have anything to do with the manufacturer.

This time around, Apple has decided to increase prices on the iPad and iPod in Japan. While this is only a couple of devices, it is big news nonetheless.

This news was first brought to light by Japanese public broadcaster NHK. While this is sure to have an impact on the way that people in this country perceive the brand, as well as overall sales, Apple did not have any choice at this time due to the weakening yen against the United States dollar.

Bloomberg added to this piece, touching on the finer details of the decision and why Apple Inc. (NASDAQ:AAPL) felt compelled to move in this direction.

Takashi Takabayashi, a spokesman for Apple in Japan, added the following:

“We made some pricing adjustments due to changes in foreign exchange rates.”

This is all he had to say, declining to add any additional information such as whether the move is permanent or temporary.

This is one side of the business that many people never consider. Just because Apple Inc. (NASDAQ:AAPL) is selling products at a particular price point in India, for example, does not mean it can do the same in Japan. Every country poses its own unique circumstances, all of which Apple has to deal with on a regular basis.

For a better idea of what type of increase consumers are seeing, the iPad Wi-Fi model with 16 gigabytes is now selling for 49,800 yen or $493. This is an increase from 42,800 yen.

Due to the economic landscape in Japan, Apple Inc. (NASDAQ:AAPL) had not choice but to make this decision and hope for the best. Only time will tell if Cupertino is willing to decrease the price in the future should things get better.

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