The tumbling value of the Yen against the U.S. dollar has caused secondhand iPhone sales to grow in Japan, as shoppers attempt to seek out upgrades at a lower cost than buying brand new.
Apple hiked iPhone 13 prices in Japan in July.
Japan's currency has reached a 32-year low compared to the dollar, which is considerably affecting spending habits in the country. Despite being the third biggest economy in the world, Japan's citizens are shifting how they spend their money to be more favorable of secondhand goods, including iPhones.
The currency change is severe enough that it has considerably increased the cost of the iPhone in the country, reports Reuters, including a 22% drop in value in 2022. While the iPhone 14 launched at a flat $799 in the United States compared to the iPhone 13, it was sold in Japan at 20% more.
Apple also increased the prices of iPhone 13 models in July. At the time, the base 128GB iPhone 13 went from 99,800 yen to 117,7800 yen.
"At more than 100,000 yen ($683), the iPhone 14 is too expensive and I just can't afford it. It would be fine if the battery lasted for 10 years," commented Kaoru Nagase, a salaryman who went for a used second-generation iPhone SE instead of the 119,800 yen ($814) iPhone 14.
The currency changes have forced the price of new iPhones up beyond the "major psychological barrier" of 100,000 yen, said Belong Inc CEO Daisuke Inoue.
The sales are also being buoyed by online auction houses and resale sites. In one example, sales on Belong's Nicosuma site have tripled since Apple raised prices in July.
However, not all of the secondhand sales increase is due to domestic purchasing. As Japan once again allows foreign tourists to visit, secondhand sales are also growing as users buy a smartphone intended for local networks.