> US dollar strength-related price increases
A weaker dollar (due to inflation, etc.) is the reason that consumer prices increase. A stronger dollar in theory should make the prices decrease.
EDIT: I understand that a stronger dollar means the prices in other currencies will increase, but I was referring to specifically the price in US markets. Pretty sure the iPhone prices in the United States increased as well.
But for whom? If you're outside the US, and I'll remind you that most of the world, including China, is, then goods effectively priced in US dollars will be more expensive.
This is what I think 99% of business people don't get when they are confused by counterintuitive price dynamics of the industry.
strength-related price increases can be ambiguously read, whether the U.S. dollar strength increased or decreased, it led to price increases.
But I'm still a bit confused on it. How is Foxconn being paid? In dollars or in yuan? If the dollar is strong, shouldn't the BOM and manufacturing costs decline in lockstep with the Chinese buyers' purchasing power (relative to USD)?
So US probably has the cheapest iPhone in the world.