Falling currency value could raise iPhone prices in China

With China devaluing its currency Tuesday, Chinese iPhone buyers could see a big spike in prices soon, The Wall Street Journal reports. In its annual report last year, Apple warned investors that a stronger U.S. currency might translate to lower sales and profit margins overseas when those sales are expressed in U.S. dollars. “There is a risk that the company will have to adjust local currency product pricing due to competitive pressures when there have been significant volatility in foreign currency exchange rates,” the reports stated. Apple didn’t immediately comment on China’s move, but the company has raised prices on its products in Canada, Japan and other countries in recent years to respond to persistent changes in exchange rates. China is currently the second-largest market for Apple — after the Americas — and the iPhone is already among the most expensive smartphones in China.

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