Apple has begun selling its first foldable smartphone, the “iPhone Duo,” in Japan. The 256GB model starts at ¥364,800, prompting claims that converting the US price of $1,999 into yen produces a different result when calculated on a pre-tax basis.
Apple announced the foldable smartphone “iPhone Duo” on 10 September and set the starting price in Japan at ¥364,800 for the 256GB model. Simply converting the US price of $1,999 into yen may create the impression that the yen is especially weak, but the article identifies the difference between tax-inclusive and pre-tax pricing as an issue.
The article examines how much the assumed exchange rate affects pricing, taking into account the difference between pre-tax and tax-inclusive displays. Calculated on a pre-tax basis, Apple appears to have set the price assuming an exchange rate of around ¥166 to the dollar. Dividing the pre-tax price of ¥331,636 by $1,999 gives an exchange rate of approximately ¥165.9.
The dollar-yen exchange rate was in the ¥153 range when the product was announced, leading to criticism that the price was based on a weaker yen than the current level. Meanwhile, the yen has recently strengthened, with the dollar-yen rate returning from the ¥160 range to the ¥153 range. Depending on future sales, the price could be revised, some observers say.
Although the yen is expected to remain weak, the practicality of the foldable design, including hinge durability, remains uncertain. Some also believe that a price cut cannot be ruled out depending on sales.