Why does the price of new devices vary from one country to another? Here is the answer in this article
Whether it is a new model of virtual headset, a smart speaker or a brand new iPhone, the price of electronic devices can vary greatly and we often find the price of a certain product in one country doubled in another country, and in light of commercial competition, the difference in product prices between one seller to another competing seller in itself has become a common occurrence anywhere in the world, and searching for differences in the prices of goods and products is one of the goals of people, whether those who are active in trade or the category of users who seek to acquire devices at the lowest possible price, and the price of the device often depends on the period of its use and its appearance, as it may The price varies if it is completely new, and in this article we will share with you some of the factors that affect the pricing of products from one country to another.
- Foreign exchange market:
Financial markets affect the price of many items. Before launching a product, a company must determine an optimal pricing strategy or its profits will be greatly reduced. The Forex market, also known as trading, is an important factor in this. In fact, if an American company sells its products in Europe for example, it always takes into account the expectations regarding the Euro/Dollar rate to determine the appropriate price. If the Euro falls as it is currently the case, the pricing results will be affected in this case and thus the price of the same product is expected to differ in America and Europe. The logic is similar for other foreign markets.
- Impact of raw material prices:
There are other things that can affect production costs and therefore need to be taken into consideration before setting the correct price. The prices of raw materials such as metals used in smartphones and others sometimes fluctuate greatly, so manufacturing costs can vary. Also, upward or downward changes in the price of oil have an impact as they will affect the price of transportation and delivery costs. Shipping companies often include a change in their prices every period so the differences have repercussions for exporting companies.
- The impact of marketing strategy on price:
Besides these purely financial elements, the company's marketing strategy is also prevalent in this regard, for example, the way a new iPhone is promoted in a geographical area is different, on the contrary, other companies like Huawei will take a completely different strategy for some products which affects the price of the devices in general.
- Tool price difference:
Many other factors influence the determination of the price of devices such as purchasing power or competition in the local market, if we take the example of the iPhone 14, the base price for the US market is around 1,008 euros and in France this price is more than 1,259 euros, while Japanese consumers will be able to buy the mentioned iPhone from 119,800 yen or about 1,005 euros, and another example with the Oculus Quest virtual reality headset its price is $ 399 in the United States, which is about 366 euros, while the base price in the European market is 449 euros, and the differences in purchasing power do not justify such a difference.