1. Introduction
Apple products are known to be expensive, but why is it that they are so much cheaper in Japan? In this article, we will discuss the various factors that contribute to the lower prices of Apple products in Japan compared to other markets around the world. We will explore the Japanese market overview, Apple’s investment in Japan, the role of the Yen exchange rate, tax benefits for Apple in Japan, competition from domestic brands, and Apple’s pricing strategies in Japan.
2. Japanese Market Overview
Japan is one of the largest markets for Apple products in the world. According to Statista, as of 2020, Japan was ranked third globally for iPhone sales and fourth for iPad sales. Furthermore, Apple has been investing heavily in its presence within the country by opening retail stores and expanding its online presence. This has allowed them to gain a larger market share and reach more consumers than ever before.
3. Apple’s Investment in Japan
Apple has invested heavily into its presence within Japan over recent years with new retail stores being opened across the country and an increased focus on its online presence. This investment has allowed them to gain a larger market share within the country and reach more consumers than ever before which helps explain why their products are cheaper than other markets around the world.
4. The Role of the Yen Exchange Rate
The exchange rate between US dollars (USD) and Japanese yen (JPY) also plays a major role when it comes to explaining why Apple products are cheaper in Japan than other countries around the world. The current exchange rate between USD/JPY is approximately 1 USD = 108 JPY which means that for every dollar spent on an Apple product within Japan you can get 108 yen worth of value out of it compared to just 100 yen worth of value if you were spending US dollars instead. This makes buying Apple products within Japan more attractive from a financial standpoint which helps explain why their prices are lower than other countries around the world where US dollars are used as currency instead of JPY.
5. Tax Benefits for Apple in Japan
In addition to having a favorable exchange rate between USD/JPY, there are also tax benefits that come with buying an Apple product within Japan compared to other countries around the world. For example, taxes on electronics such as smartphones or tablets can be as high as 10% or more depending on where you live whereas taxes on these same items purchased within Japan can be as low as 5%. This helps make buying an Apple product within Japan even more attractive from a financial standpoint which again explains why their prices are lower than other countries around the world where taxes tend to be higher on similar items like smartphones or tablets
6 Competition from Domestic Brands
Another factor that contributes to why Apple products tend to be cheaper in Japan compared to other countries is competition from domestic brands such as Sony or Sharp who have been producing electronics for decades now and have established strong footholds within their respective markets within Asia Pacific region including Japan itself.These companies offer competitively priced alternatives that often undercut what Apple charges for similar items which forces them to keep their own prices down or risk losing market share due to competition from these local brands.
7.Apple’s Pricing Strategies in Japan
Finally,it is important to consider how Apple itself structures its pricing strategies when selling its products within different markets including those located outside of North America.Generally speaking,they tend to charge less for their products when sold through third-party retailers such as Amazon or Best Buy due to increased competition but will often charge full price when selling directly through their own stores or website.This helps explain why their prices may appear higher outside North America while still being significantly lower when sold through retailers located inside of North America such as those located inside of japan.
8.Conclusion
In conclusion,there are several factors contributing towards why apple products tend to be cheaper when purchased inside japan compared with those purchased elsewhere aroundthe globe.These include factors suchas favorable exchange rates between USD/JPY,tax benefits for apple purchases madein japan,competition from domestic brands offering competitively priced alternatives,andapple’s own pricing strategies when selling directly through third-party retailers versusselling directly throughtheir own stores or website.All these factors combined help explainwhy apple’s prices appearcheaperwhen purchased inside japan compared withthosepurchased elsewherearoundthe globe.
9 Sources & Further Reading
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Statista (2020). Global iPhone sales by region 2019 | Statista https://www.statista.com/statistics/1114131/global-iphone-sales-by-region/
Statista (2020). Global iPad sales by region 2019 | Statista https://www.statista.com/statistics/1114133/global-ipad-sales-by-region/
OFX (2020). Currency Converter – Live Exchange Rates | OFX https://www.ofx com /en-us /currency -converter /
Investopedia (2020). What Is Tax Rate? https://www
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