Not only Vietnam, the USD price increase makes many iPhone 14 consumer markets difficult

For years, Japanese people eagerly shopped for the latest electronic gadgets. Now, the devaluation of the yen keeps some people out of the iPhone 14 and stimulates a growing second-hand sale in Apple’s big market.

Japan’s yen fell to a 32-year low against the dollar, hurting consumers and spurring a broader spending shift in the world’s number three economy.

This makes the secondhand iPhone market in Japan become bustling. The depreciation of the Japanese Yen strangles users and promotes new shopping habits. Observers say that Japanese customers are becoming more open to buying second-hand goods thanks to the popularity of online auction websites.

In July, Apple raised the price of the standard iPhone by nearly 20%. The regular iPhone 14 is also 20% more expensive than the iPhone 13, even if the US price stays the same ($799). Due to the strong strengthening of the dollar against other currencies this year, the yen has been particularly affected and has depreciated by about 22%.

Kaoru Nagase, an office worker, wants to buy a new device but can’t afford the iPhone 14, which has the lowest price of 119,800 yen ($814). So, he switched to buying used iPhone SE 2 at Akihabara electronics town in Tokyo for less than 1/3.

“For more than 100,000 yen, the iPhone 14 is too expensive and I can’t afford it. It will be fine if the battery lasts for 10 years,” he shared. iPhone SE 2 launched in 2020, features enough for the price.

Sales in Japan fell 9% in the 12 months ended September 24 due to the weakening yen. Chief Financial Officer Luca Maestri also acknowledged that a strong dollar has led to higher prices in some countries, but sales are still growing by double digits in Vietnam, Indonesia and other markets that are facing financial challenges. currency.

According to market research firm MM Research Institute, used smartphone sales increased by nearly 15% in Japan to a record 2.1 million units in 2021 and is likely to reach 3.4 million units by 2026.

The 100,000 yen barrier

Taishin Chonan bought a used iPhone 13 after one of his phones had a broken screen. iPhone 13 has a better screen, better battery and camera than the iPhone 7 he is using.

“In the past, I only bought new phones, this is my first time buying second-hand because new smartphones are too expensive,” the 23-year-old said.

According to MM Research, even with the price increase, the iPhone 14 in Japan is still the cheapest of the 37 countries without tax. A weakening yen could cause Apple to increase prices further, affecting its 50% market share here.

Daisuke Inoue, CEO of Belong – Itochu’s online trading unit of used phones and tablets – said that 100,000 yen is a “big psychological barrier” for many customers. Average sales on Belong’s e-commerce site Nicosuma have tripled since Apple raised prices in July compared with three months ago.

After the inspection, sorting and cleaning process, Belong will take pictures of the old phone from various angles to put it up for sale online. Equipment is acquired both at home and abroad, whichever is best. For example, some tablets used to be used to pay in cafes or in taxis.

Many Japanese consumers are often afraid of secondhand items, including electronics, but that is slowly changing. Online markets recorded strong growth in the second-hand smartphone segment, and sales of home appliances and electronics also increased.

When Japan opened its doors to foreign tourists, the used iPhone market became even more bustling. Retail chain Iosys said that the number of foreign customers buying used iPhones in the past 2 months increased sharply. “The yen continues to weaken. The trend of traveling to Japan and buying an iPhone is coming back,” said Iosys CEO Takashi Okuno.

Reference: Reuters