Price iPhone: follow any other electronics manufacturers example Apple?




From November 26 Apple introduced the new prices on most of its products sold in Russia – including the iPhone 6, 5s and 5c. While waiting for this for a long time, the scale of the jump caused some shock – in fact, Apple has invested in him all the devaluation of the ruble in recent months as a result, for example, the youngest model in the line of iPhone 6 has risen to 39 990 rubles. The publication Lenta decided to investigate how such a move is justified and whether to expect the same from other manufacturers of electronic equipment.

The invisible hand of the vendor

10-15 years ago the answer would be obvious: almost all the equipment was imported to the Russian market are not manufacturers, and third-party distributors. Latest bought it for dollars, and therefore the final ruble prices in Russia were closely tied to the dollar – up to the fact that small retailers can recalculate your price list several times a week.

However, in recent years, interest in the opening of the direct producers and official business in Russia above all, changing distribution channels, and pricing are included new motives and levers. If the distributor and retail often indifferent which of the brands sold better, and what – worse, the manufacturer understandably concerned only one brand. And the growth of prices for it, obviously affect its competitiveness – if other vendors will be able to keep prices for their products, some of the buyers for them and leave.

The first step in the establishment of producer control over the situation – translation import into their own hands. In this case, the dollar price of retail chains do not worry: they buy equipment from the manufacturer already in Russia and it is calculated in rubles. The manufacturer is trying to change the ruble prices as little as possible, in the case of compensating for fluctuations in the difference due to its own margins, which originally could be laid “safety margin” in the foreign exchange risks.

The second step – control over retail prices and decent profit distributors and retailers. If the price is fully let to float freely between retail stores unfold price wars. Although in theory it is considered that any price war – for the benefit of the buyer, in practice this is not always the case: low margin product, around which there was a war, making it unattractive for large-scale retail. Without sales in large retail goods are not interested importers and distributors, and after a period of good price the buyer suddenly left with empty hands – goods will just disappear from the shelves.

Control prices directly – for example, the penalties – the manufacturer can not, as this will cause a genuine interest on the part of the Antimonopoly Service. Therefore, vendors are trying to find workarounds: promised bonus payments at the end of the month or quarter the networks that adhere to the recommended prices, but most are just trying to convince them in words.

In this issue of profitability for retailers enough essential: straight margins (ie the difference between the purchase price and sale price) on the same smart phones is about 10-20 percent, even some money shop will receive the aforementioned bonuses – but with a noticeable delay, often a few months after the actual sale of the goods. What is curious, Apple, according to some sources, closer to the lower end of the range, and for indirect partners (ie, receiving goods through a distributor) – and below this limit. In any case, the numbers can not be called huge.

Distributor is in this scheme, as a rule, earns only 2-4 per cent of the price of the goods – but since he does not bear the cost of renting retail space and layout, as well as the relevant personnel, it is enough to return.

Separately, it is worth noting that the increase in the prices of goods have already been sold – enough not a trivial operation, because each network is tempted to hold the old price of the extra couple of days. This will allow buyers to postpone part of the competition, raise prices once – especially when it comes to price of goods at 20-25 percent.

Nevertheless, Apple has to take this step. Does this mean that there is no alternative and the other manufacturers will follow the example of the American company?

Aside panic

Interviewed retailers in unison said: No, no one from other manufacturers such an increase in prices does not expect, and Apple is not the most committed a deliberate move that will cause a negative reaction from consumers.

Head of Public Relations Company “” Anton Panteleev said that, in his opinion, the rise in prices will lead to a drop in the share of Apple in the market. “Customers are ready to make the purchase at the previous price, will switch attention to the products of other brands whose prices are now much lower,” – he said.

Alexander Malis, president of the company “Euro”, adding that higher prices have a major impact on sales of older models of iPhone: ¬ęDemand may sag percent to 50. For more cheap smartphones such failure will not, in other segments of the drop in demand is limited to 20, but somewhere and 10 percent, not more. ”

Both companies are confident that other manufacturers such is not expected. Alexander Malis: “Unfortunately, the price hike is inevitable now, and retail prices, we also have to raise. [But] we expect that other vendors will raise prices much smoother. ” Anton Panteleev and pushes all the terms of the main rise in prices for the next year: “Now, many large retailers are selling the remnants of waste, purchased in the summer, and the producers themselves keep prices before the New Year, so as not to hurt to ask, but this is unlikely to last long. By the middle of the I quarter of next year will begin a gradual change in the prices of key categories. ”

In this case, “M.Video” predicts that the price of the smartphone market in the first quarter of 2015 to grow by 5-15 percent, and stronger rise only PCs and laptops – up to 20 percent. Household appliances will increase in price to a maximum of 10 percent, as most of it, according to the company, is going on in Russia, and therefore less dependent on the dollar.

In the meantime, the situation in the retail and quiet at all. Alexander Malis, “Y” Euroset “all payments to suppliers, of course, made in rubles – and now prices are fixed, so long as we did not feel the pressure of the dollar.”

Manufacturers – with the exception of Apple – as signs of panic do not show. So, Samsung 25 November and did cut prices on several of its flagship models – the maximum fall of 3000 reached .

Arkady Graf, director of mobile solutions Samsung Electronics, confirms that the decline in prices – the official: “We expect that the demand for promotional model thus can grow up to 30 percent compared to regular sales, especially given that the price of competing models significantly increased. This decrease in prices for Samsung probably because the risks of exchange rate changes into account at the stage of delivery of the goods in the country. ”

However, Arkady Graf did not deny that other models can appreciate: “As for the rest of the lineup, we can not rule out the possibility of increasing prices, the decision will be taken in the coming weeks.” However, an increase in the scale comparable to Apple, here it goes.

From other manufacturers note Lenovo: this is the only supplier of Android-smartphone, officially announced a price increase . However, it affected individual models in the middle and upper segments and all two thousand rubles.
Ahead of the rest

It seems, Apple once again stepped forward across the industry – but not in a positive way. The sharp rise in prices for goods made them significantly more expensive competitors in the hottest New Year season, which could have a very negative impact on sales. In this case, retailers do not see such a positive step, neither the parties nor urgent need.

Consumers, if the dollar exchange rate will not put new records until nothing to fear – apparently, Apple will be an exception among the major equipment manufacturers. The rest of the vendors did their best to smooth and stretch out a rise in prices, in order not to be at a disadvantage relative to competitors position before the New Year, but even try to win in this situation by selling their technique albeit with lesser marginality, but in large volumes.

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