Which markets are most affected by the rising US dollar?

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Markets Most Affected by the Rising US Dollar

Apple is adjusting iPhone pricing in international markets to counter the impact of a strengthening US dollar, a move that particularly affects countries where local currencies have depreciated significantly. This strategy aims to make iPhones more competitive against rivals and stimulate sales in regions experiencing economic headwinds.
China and Turkey Face Significant Price Pressures

Countries such as China and Turkey have seen their local currencies weaken considerably against the US dollar. This currency depreciation has made Apple's products, including the iPhone XS launched in September 2018 at US$999, substantially more expensive for consumers in these markets compared to their predecessors. For instance, the Turkish lira depreciated by 33 per cent against the US dollar, leading to a reported US$700 million decrease in Apple's sales in that region compared to the previous year.
Impact on Sales and Apple's Response

The rising US dollar has directly contributed to a dip in iPhone sales, marking the first-ever decline during a holiday shopping period. Apple CEO Tim Cook acknowledged this, stating that the company would reset prices in some markets to align more closely with local currency values from a year prior. This effectively means Apple will absorb the cost of the strengthening dollar to mitigate its impact on sales volumes.
Other Markets Experiencing Currency Pressure

Beyond China and Turkey, Apple has also cited currency pressure affecting its pricing in other key markets. In November, the company specifically mentioned Brazil, India, and Russia as countries where the appreciation of the US dollar has created challenges for its pricing strategy. These regions, along with others, are likely to be considered for price adjustments to maintain market competitiveness.

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Which markets are most affected by the rising US dollar?

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