CGPT: iPhone Related

Why does the iPhone get significantly more expensive after 2019?

The sharp rise in iPhone prices after 2019 can be attributed to a combination of technological, economic, and strategic factors. Here’s a clear breakdown:

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💡 1. Shift in Apple’s Product Strategy

• Pre-2019: Apple offered “base” iPhones like the iPhone 8 (~¥78,000) and flagship models like the iPhone X.

• Post-2019: Apple doubled down on multi-tier flagship lines (e.g. Pro, Pro Max), which come with premium materials, higher-end cameras, and new features—at premium prices.

➡️ Apple started positioning iPhones as long-term luxury devices rather than mass-market gadgets.

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📱 2. Increased Hardware Costs

Newer iPhones introduced features that dramatically increased manufacturing costs:

• OLED and ProMotion displays (from iPhone X and 13 Pro)

• LiDAR scanners, triple-lens cameras, periscope zoom

• Titanium frames (iPhone 15 Pro/Max)

• 5G modems, ultra-wideband chips, and satellite connectivity

➡️ These parts cost more, and Apple rarely cuts profit margins.

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🌍 3. Global Inflation + Weak Yen

• Since 2021, Japan has faced a weakened yen against the US dollar.

• Apple prices its hardware globally in USD first; when converted to JPY, the local prices shot up.

Example:

• iPhone 13 (2021): ~$799 USD → ~¥98,800

• iPhone 14 (2022): still $799 USD → ¥119,800 (due to FX rate)

➡️ iPhones got much more expensive in Japan without changing the USD price.

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🔁 4. Longer Upgrade Cycles

• Apple expects users to keep iPhones longer (4–6 years), so they’ve raised initial prices and emphasized durability and longevity.

• Features like 5–6 years of software support justify this in their marketing.

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📦 5. Removal of Accessories

• Apple stopped including chargers and earphones in the box starting in 2020, while keeping or raising retail prices.

• This helped Apple’s margins while appearing to be environmentally conscious.

✅ Summary