Apple raises iPad and iPod prices in Japan, blames weak yen
Apple quietly raised the prices of all iPad and iPod models in Japan on Thursday as the yen continues to weaken against the US dollar, making business increasingly difficult for companies selling imported products.
First reported by Japanese public broadcaster NHK (via Bloomberg), the affected products appear to be limited to Apple's music players and tablets, each of which saw substantial price hikes as the yen continued its slide against the dollar.
?We made some pricing adjustments due to changes in foreign exchange rates,? Apple spokesman Takashi Takabayashi told Bloomberg.
Apple Online Store iPad pricing from April 29 (top) and May 31. | Source: Internet Archive and Apple
A look at a cached version of the Japanese Apple Online Store from April shows pricing for a 16GB iPad with Wi-Fi at 42,800 yen (about $424 at Thursday's rate of 100.92 yen to the dollar), which is 7,000 yen less than today's price of 49,800 yen. In dollars, the change equates to a roughly $70 difference. The iPad mini saw a similar price hike, with a 16GB Wi-Fi version boosted from 28,800 yen to 32,800 yen.
As for the iPod lineup, a 32GB touch moved from 24,800 yen to 29,800 yen, while an additional 2,000 yen and 600 yen were tacked onto the nano and shuffle, respectively. Finally, the iPod classic's price went from 20,900 yen in April to today's price of 24,800 yen.
The weakened yen comes as a result of Japanese Prime Minister Shinzo Abe's plan to halt the currency's deflation. Earlier in May, the yen fell past 101 yen to the US dollar, its lowest point since 2009.
First reported by Japanese public broadcaster NHK (via Bloomberg), the affected products appear to be limited to Apple's music players and tablets, each of which saw substantial price hikes as the yen continued its slide against the dollar.
?We made some pricing adjustments due to changes in foreign exchange rates,? Apple spokesman Takashi Takabayashi told Bloomberg.
Apple Online Store iPad pricing from April 29 (top) and May 31. | Source: Internet Archive and Apple
A look at a cached version of the Japanese Apple Online Store from April shows pricing for a 16GB iPad with Wi-Fi at 42,800 yen (about $424 at Thursday's rate of 100.92 yen to the dollar), which is 7,000 yen less than today's price of 49,800 yen. In dollars, the change equates to a roughly $70 difference. The iPad mini saw a similar price hike, with a 16GB Wi-Fi version boosted from 28,800 yen to 32,800 yen.
As for the iPod lineup, a 32GB touch moved from 24,800 yen to 29,800 yen, while an additional 2,000 yen and 600 yen were tacked onto the nano and shuffle, respectively. Finally, the iPod classic's price went from 20,900 yen in April to today's price of 24,800 yen.
The weakened yen comes as a result of Japanese Prime Minister Shinzo Abe's plan to halt the currency's deflation. Earlier in May, the yen fell past 101 yen to the US dollar, its lowest point since 2009.
Comments
You can easily check the YEN and verify that it is indeed very weak and that the new prices reflect the US prices. Stop this negative headlines, will ya?
Wasn't Shinzo Abe Prime Minister of Japan like 5 years ago or something?
As the others have said, the article is poorly written. Compare this article to the one on Macrumors.
Apple Raises iPad and iPod Prices in Japan
Margins ?
Far more likely it shows which ones are not selling.
Margins increase all the time as costs continue to fall.
Japan is just unlucky enough that their prices went up.
Everything is getting more expensive here... too quickly.
It's almost like some crazy people out there keep mentioning that debasing a currency lowers the purchasing power of that currency and thus causes inflation.
Those people are crazy though. That would never happen. That is all just evil Republican, Tea Party, religious nonsense.
Quote:
Originally Posted by Entropys
Considering all the QE your fed has been doing, that the yen us falling faster than the USD is something scary for the average Japanese to consider.
The USD has been gaining strength against many currencies not just the Yen. Year to date it's up nearly ~7% on the GBP, about ~1.5% on the Euro, ~3.8 on the CAD, ~7.5% on the AUD. The reason the Bank of Japan is trying to weaken the yen is because it has pretty dire consequences on its export-heavy economy.
Quote:
Originally Posted by trumptman
It's almost like some crazy people out there keep mentioning that debasing a currency lowers the purchasing power of that currency and thus causes inflation.
Those people are crazy though. That would never happen. That is all just evil Republican, Tea Party, religious nonsense.
Who exactly says that QE doesn't cause inflation? Can you cite someone specific or are you just beating a strawman?
Ascii: yeah, Abe was PM several years back. Left for a health reason. He recovered and his party regained power last fall.
Quote:
Originally Posted by trumptman
It's almost like some crazy people out there keep mentioning that debasing a currency lowers the purchasing power of that currency and thus causes inflation.
Those people are crazy though. That would never happen. That is all just evil Republican, Tea Party, religious nonsense.
Increases in the price of Apple products and the like is trivial for overall CPI.
Perhaps your Tea Party wisdom can explain why both inflation and nominal long-term bond yields (which include a long-run inflation premium) in Japan continue to be at historic lows?
Oh, while you're at that, you could also perhaps explain both those phenomena in the US, despite you guys caterwauling about a 'debased currency' for years on end....?
Quote:
Originally Posted by Applelunatic
Quote:
Originally Posted by Entropys
Considering all the QE your fed has been doing, that the yen us falling faster than the USD is something scary for the average Japanese to consider.
The USD has been gaining strength against many currencies not just the Yen. Year to date it's up nearly ~7% on the GBP, about ~1.5% on the Euro, ~3.8 on the CAD, ~7.5% on the AUD. The reason the Bank of Japan is trying to weaken the yen is because it has pretty dire consequences on its export-heavy economy.
Quote:
Originally Posted by trumptman
It's almost like some crazy people out there keep mentioning that debasing a currency lowers the purchasing power of that currency and thus causes inflation.
Those people are crazy though. That would never happen. That is all just evil Republican, Tea Party, religious nonsense.
Who exactly says that QE doesn't cause inflation? Can you cite someone specific or are you just beating a strawman?
Paul Krugman is a pretty well known and specific example.
Quote:
Originally Posted by anantksundaram
Quote:
Originally Posted by trumptman
It's almost like some crazy people out there keep mentioning that debasing a currency lowers the purchasing power of that currency and thus causes inflation.
Those people are crazy though. That would never happen. That is all just evil Republican, Tea Party, religious nonsense.
Increases in the price of Apple products and the like is trivial for overall CPI.
Perhaps your Tea Party wisdom can explain why both inflation and nominal long-term bond yields (which include a long-run inflation premium) in Japan continue to be at historic lows?
Oh, while you're at that, you could also perhaps explain both those phenomena in the US, despite you guys caterwauling about a 'debased currency' for years on end....?
If you looked into CPI, you'd note that over the long term, they've taken out the items that tend to show the inflation. What good is a statistic if you keep changing the factors that determine it? (Examples taking out food and energy costs) It's sort of like saying when you don't like what you weigh, you just buy a different scale. Also remember that governments will print and buy their own bonds when the rates get too high. They simply paper over their problems and push them down the road. It is akin to buying some vanity sized clothing and declaring you are still a certain size instead of addressing your health.
Those of us who are "caterwauling" about inflation have noted the changes in the way the government tracks money supply, inflation and other variables that reveal the true nature of the problem. Likewise the coming correction will be much worse because the problem has been let go for so long.
Perhaps you could explain how Japan has followed pure Keynesian models for decades now and still has seen no positive outcomes with regard to their economy and having it come out of recession and return to true growth.
I suppose next someone is going to declare something like Apple having their cash sitting off shore is proof that tax policy alters corporate and personal financial decisions. Those people would be making crap up I'm sure. We all know everyone just accepts taxes at their current rates and they would never base their decisions on tax rates. Only greedy, selish and hateful assholes would suggest otherwise.
Quote:
Originally Posted by trumptman
1) If you looked into CPI, you'd note that over the long term, they've taken out the items that tend to show the inflation. .....
2) (Examples taking out food and energy costs)
3) It's sort of like saying when you don't like what you weigh, you just buy a different scale.
4) Also remember that governments will print and buy their own bonds when the rates get too high. They simply paper over their problems and push them down the road. I
5) Those of us who are "caterwauling" about inflation have noted the changes in the way the government tracks money supply, inflation and other variables that reveal the true nature of the problem.
6) Likewise the coming correction will be much worse because the problem has been let go for so long.
7) Perhaps you could explain how Japan has followed pure Keynesian models for decades now and still has seen no positive outcomes with regard to their economy and having it come out of recession and return to true growth.
8) I suppose next someone is going to declare something like Apple having their cash sitting off shore is proof that tax policy alters corporate and personal financial decisions. Those people would be making crap up I'm sure. We all know everyone just accepts taxes at their current rates and they would never base their decisions on tax rates. Only greedy, selish and hateful assholes would suggest otherwise.
1) Tinfoil hat.
2) 'Core' inflation and non-core inflation are both always reported. (Look up what 'non-core' means).
3) Tinfoil hat.
4) If so, if should show up in long-term nominal bond yields. It doesn't. It hasn't. You can't fudge that. Please take a basic course in economics (preferably macroeconomics), then you could perhaps start to explain what's going on.
5) Sky is falling! Sky is falling! (If you say that every day, every year, for many many years, one day it might actually happen -- but then again, not -- and if it does, you'll no doubt claim credit).
6) Pure, idle, useless speculation.
7) Japan has not really followed a Keynesian model. In any event you guys have no clue about what 'Keynesian' even means. You could start by reading Keynes (instead of parroting talking points put out by right-wing think tanks -- which are as bad as the ones put out by the left-wing think tanks).
8) Irrelevant.
Quote:
Originally Posted by trumptman
Paul Krugman is a pretty well known and specific example.
So then provide specific examples of what he says. I don't take your word for it. The only thing I've ever seen him say is that it doesn't have as dramatic effects as the chicken littles claim, not that quantitative easing has no inflationary effect. If you can point out in a quote him saying it causes zero inflationary effect then you'll have something.
Why even take my word for it when we can just take it straight from Krugman's mouth:
The Fed is, however, creating a new liability: the monetary base it creates to buy these bonds. In effect, it’s printing $1 trillion of money, and using those funds to buy bonds. Is this inflationary? We hope so! The whole reason for quantitative easing is that normal monetary expansion, printing money to buy short-term debt, has no traction thanks to near-zero rates. Gaining some traction — in effect, having some inflationary effect — is what the policy is all about.
Funny, those bolded parts seem to completely contradict your claim that Krugman thinks QE has no inflationary effect. From here: http://krugman.blogs.nytimes.com/2009/03/20/fiscal-aspects-of-quantitative-easing-wonkish/
I won't hold my breath that you'll bother to respond or admit you were completely wrong and doing nothing but beating a strawman.
Quote:
Originally Posted by Applelunatic
Quote:
Originally Posted by trumptman
Paul Krugman is a pretty well known and specific example.
So then provide specific examples of what he says. I don't take your word for it. The only thing I've ever seen him say is that it doesn't have as dramatic effects as the chicken littles claim, not that quantitative easing has no inflationary effect. If you can point out in a quote him saying it causes zero inflationary effect then you'll have something.
He'll be searching for a while. Krugman has never said that.
This guy is a poster child for what's wrong with our political-economic discourse.
Quote:
Originally Posted by anantksundaram
Quote:
Originally Posted by trumptman
1) If you looked into CPI, you'd note that over the long term, they've taken out the items that tend to show the inflation. .....
2) (Examples taking out food and energy costs)
3) It's sort of like saying when you don't like what you weigh, you just buy a different scale.
4) Also remember that governments will print and buy their own bonds when the rates get too high. They simply paper over their problems and push them down the road. I
5) Those of us who are "caterwauling" about inflation have noted the changes in the way the government tracks money supply, inflation and other variables that reveal the true nature of the problem.
6) Likewise the coming correction will be much worse because the problem has been let go for so long.
7) Perhaps you could explain how Japan has followed pure Keynesian models for decades now and still has seen no positive outcomes with regard to their economy and having it come out of recession and return to true growth.
8) I suppose next someone is going to declare something like Apple having their cash sitting off shore is proof that tax policy alters corporate and personal financial decisions. Those people would be making crap up I'm sure. We all know everyone just accepts taxes at their current rates and they would never base their decisions on tax rates. Only greedy, selish and hateful assholes would suggest otherwise.
1) Tinfoil hat.
2) 'Core' inflation and non-core inflation are both always reported. (Look up what 'non-core' means).
3) Tinfoil hat.
4) If so, if should show up in long-term nominal bond yields. It doesn't. It hasn't. You can't fudge that. Please take a basic course in economics (preferably macroeconomics), then you could perhaps start to explain what's going on.
5) Sky is falling! Sky is falling! (If you say that every day, every year, for many many years, one day it might actually happen -- but then again, not -- and if it does, you'll no doubt claim credit).
6) Pure, idle, useless speculation.
7) Japan has not really followed a Keynesian model. In any event you guys have no clue about what 'Keynesian' even means. You could start by reading Keynes (instead of parroting talking points put out by right-wing think tanks -- which are as bad as the ones put out by the left-wing think tanks).
8) Irrelevant.
Wow, what a rude and dismissive post. I suppose when that's all you've got to support your point you use it though. The irony of claiming someone is paranoid and ignorant while exemplifying it is just amazing irony.
You haven't added anything beyond that so there really isn't much to address. Try again and perhaps when you add something beyond "You're a stupid poop head" we can have an adult discussion.
Quote:
Originally Posted by Applelunatic
Quote:
Originally Posted by trumptman
Paul Krugman is a pretty well known and specific example.
So then provide specific examples of what he says. I don't take your word for it. The only thing I've ever seen him say is that it doesn't have as dramatic effects as the chicken littles claim, not that quantitative easing has no inflationary effect. If you can point out in a quote him saying it causes zero inflationary effect then you'll have something.
You are engaging in a classic strawman. The name was mentioned in response to someone declaring that QE doesn't cause inflation. Not being the cause and measuring zero inflation are not the same thing.
Quote:
Originally Posted by Applelunatic
Why even take my word for it when we can just take it straight from Krugman's mouth:
The Fed is, however, creating a new liability: the monetary base it creates to buy these bonds. In effect, it’s printing $1 trillion of money, and using those funds to buy bonds. Is this inflationary? We hope so! The whole reason for quantitative easing is that normal monetary expansion, printing money to buy short-term debt, has no traction thanks to near-zero rates. Gaining some traction — in effect, having some inflationary effect — is what the policy is all about.
Funny, those bolded parts seem to completely contradict your claim that Krugman thinks QE has no inflationary effect. From here: http://krugman.blogs.nytimes.com/2009/03/20/fiscal-aspects-of-quantitative-easing-wonkish/
I won't hold my breath that you'll bother to respond or admit you were completely wrong and doing nothing but beating a strawman.
Oh you silly guy you. Don't you remember that Paul changes his tune from week to week. Why that quote is from all the way back in 2009. This month he is saying something completely different of course.
Economists who had studied such traps — a group that included Ben Bernanke and, well, me — knew that some of the usual rules of economics are in abeyance as long as the trap lasts. Budget deficits, for example, don’t drive up interest rates; printing money isn’t inflationary; slashing government spending has really destructive effects on incomes and employment.
Now did he say ZERO inflation which is what you did with your strawman there? No. However he clearly said printing money isn't inflationary which is exactly what I claimed he said.
You sir, owe me a very well thought out apology.
Quote:
Originally Posted by anantksundaram
Quote:
Originally Posted by Applelunatic
Quote:
Originally Posted by trumptman
Paul Krugman is a pretty well known and specific example.
So then provide specific examples of what he says. I don't take your word for it. The only thing I've ever seen him say is that it doesn't have as dramatic effects as the chicken littles claim, not that quantitative easing has no inflationary effect. If you can point out in a quote him saying it causes zero inflationary effect then you'll have something.
He'll be searching for a while. Krugman has never said that.
This guy is a poster child for what's wrong with our political-economic discourse.
Actually folks like yourself who are dismissive, rude and who believe you are superior to others and thus refuse to listen to anything that might jar you out of your own ignorance are the problem.
If you care to engage the topic, we can have a conversation and on the thread topic, I'm sure the fine folks in Japan will, per the model, now run out and buy all these iPods and increase the viscosity of their money because they will be fearful that the price might go up even more in the future. Why it won't be real inflation because everyone in Japan will have already gotten a raise and have a job due to the money moving around so much more quickly. In fact, they will run out and grab with their latest raise.