Plummeting pound hits phone prices
British visitors to the US are no longer able to rely on picking up an iPhone cheaply thanks to the falling value of the pound.
The aftermath of the EU referendum means that the pound is now worth $1.30, a 31-year low. Traditionally, UK residents visiting the US have been able to pick up the latest iPhone model at a knock-down price. However, due to the falling pound along with local taxes, these consumers may find that they are actually paying more for the same handset than they would in the UK at current prices. Additionally, Apple has stated that it cannot guarantee that the cost of the handset in the UK will not rise. It has also been reported that British users may find themselves paying more for apps for Apple products.
However, this does not just apply to Apple gadgets and apps – other handset manufacturers such as OnePlus are affected as well. OnePlus has increased the cost of its main handset following the UK’s vote to leave the EU, so users in the UK can expect to pay an extra £20 for the product.
The company has explained that it has been forced to change the price of the handset in light of the Brexit vote and the fall in value of the pound. It added that it put off the decision for as long as possible.
OnePlus has described the margins on its products as “extremely thin” and stated that these are affected by unstable markets. It has described the changes to its prices as “small.”