Apple Raises iPhone Prices in Japan by Up to 11% on July 18

Apple raised iPhone prices in Japan by 8% to 11.3% on July 18, with the iPhone Air seeing the largest increase at 11.3% and the iPhone 17 Pro Max jumping ¥20,000 to ¥214,800. The price hikes follow the yen’s decline to a 40-year low against the dollar, forcing Apple to adjust pricing in its second-largest market. Apple Watch and AirPods also saw increases of up to 10.8%, though AirPods Max remained unchanged.

Why Apple raised iPhone prices in Japan

Apple did not officially state its reason, but the timing points to currency weakness. Japan’s yen hit its lowest level in 40 years against the dollar, reducing the dollar value of Apple’s Japan sales. By raising yen prices, Apple aligns Japanese pricing with other markets without changing dollar revenues. This follows a similar 25% iPhone price increase in Japan in July 2022 due to yen depreciation.

The full price breakdown

The iPhone 17 rose ¥13,000 from ¥129,800 to ¥142,800 (10% increase). The iPhone 17 Pro jumped from ¥179,800 to ¥194,800 (8.3%). The iPhone Air climbed from ¥159,800 to ¥177,800 (11.3%). The iPhone 17 Pro Max surged ¥20,000 from ¥194,800 to ¥214,800 (10.3%). Even the budget iPhone 17e crossed ¥100,000 for the first time, rising from ¥99,800 to ¥107,800 (8%). Apple Watch Series 11 rose 10.8% to ¥71,800, while AirPods Pro 3 climbed 7.5% to ¥42,800.

No global price hike yet, but memory costs loom

Apple held iPhone prices flat in all other markets. However, CEO Tim Cook told The Wall Street Journal in late June that the company can no longer absorb memory and storage chip costs, calling the shortage a “hundred-year flood.” In June, Apple raised prices on Macs, iPads, and Vision Pro globally. Japan’s move suggests regional pricing adjustments may spread to other markets before the September iPhone 17 launch. Apple will discuss pricing on its fiscal Q3 earnings call on July 30.

What this means for investors

Meyka grades AAPL a B with a 12-month forecast of $292.04, suggesting limited upside from the current $333.74 price. Analyst consensus is neutral (13 Buy, 5 Hold, 2 Sell). The Japan price hike signals Apple is shifting strategy to protect margins as component costs rise globally. If similar increases reach other markets, it could pressure iPhone demand and revenue growth in price-sensitive regions.

Final Thoughts

Apple’s Japan price hike marks a tactical shift to protect margins amid weak yen and rising chip costs. With Meyka grading the stock B and forecasting $292, investors should watch the July 30 earnings call for guidance on global pricing and margin pressure.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.