Apple raised the prices of its iPod music players due to the depreciation of the Korean won.
/ Korea Times |
By Kim Tong-hyung
Staff Reporter
Apple has bumped up the prices of its iPod music players here due to the depreciation of the local currency, company officials said. It remains to be seen whether the move by the American electronics giant would give rival gadget makers a fighting chance.
In a decision that caught consumers off guard last week, Apple raised the retail prices of its iPod products by roughly 32 to 38 percent, timing the changes with the domestic release of the company's third-generation iPod Shuffle.
Since September, Apple had priced its iPod players based on a won-dollar exchange rate of 1,100 won. However, with the Korean won continuing to lose value, sliding to around 1,500 won per dollar in recent months, Apple was forced to raise hardware prices.
The price adjustments were limited to the Korean market, according to officials at Apple's local headquarters. Apple had raised the prices of its desktop computers and laptops by as much as 37 percent earlier this month.
``With the won-dollar rate continuing to dip, the company had to rationalize the prices of its iPod products here,'' said an Apple Korea official, saying that the new prices are based on an exchange rate of about 1,400 won per dollar.
``Despite the price increase, iPod players are still cheaper here compared to neighboring markets such as Hong Kong and Japan,'' he said.
The price of the 8-gigabytle iPod Nano players was raised from 180,000 won to 249,000 won (about $169), while the price tags on the 8-gigabyte iPod Touch, which is immensely popular here for its video and wireless Internet applications, increased from 280,000 won to 379,000 won.
The 32-gigabyte iPod Touch now sells for a whopping 659,000 won, 170,000 won more than its previous price of 489,000 won.
The sudden raise in iPod prices sparked a frenzy in online shopping sites Friday, as consumers raced to put in last-minute orders to purchase the products at previous prices.
With most sites selling older inventory and removing products, the online purchase of iPod Touch is currently available only through Apple's official Web site.
Korean gadget lovers enjoyed comparatively low prices of iPod players here, which even had customers from Japan and other neighboring countries flocking to Yongsan Electronics market and other major retail centers to pick up the latest models.
However, Apple's recent adjustment eliminates much of the price advantage, providing an opportunity for local electronics makers such as Samsung Electronics, Reigcom and Cowon to win back market share.
Compared to the 249,000 won price tag for the 8-gigabyte iPod, Samsung's 8-gigabye Yepp Q1, which sells for around 130,000 won, suddenly doesn't look so bad.
``A 30 percent raise in prices would certainly have an impact on Apple's sales, and the Korean MP3 player makers will surely strengthen their marketing efforts' to use the current situation to their advantage,'' said an official from Cowon.
Apple's market share in the local music player market is around 40 percent, according to industry estimates.
thkim@koreatimes.co.kr
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