The iPhone 13 Appears to Impact Apple Europe Sales in 2022

Apple sales in 2022 started with a boost, thanks to iPhone 13. Apple Europe sales also grew by one percent in early 2022 as demand for the iPhone 13 series was intense. However, the iPhone smartphone prices vary from one country to another, and the future of its sales is unclear. 

Apple’s EU Customers Pay for More price

Apple sales in 2022 show that its products are more expensive in Europe. European customers have to pay more than the buyers in the US to buy the same product. For instance, in the UK, the iPhone 13 Pro Max 256 GB is £ 1149 (around € 1349). At the same time, it is € 1379 in France, € 1369 in Germany, and € 1379 in the Netherlands. This iPhone smartphone is around $ 1199 (about € 1166) in the US market. One of the reasons for higher prices is the highest standard VAT (value added tax) rates among the EU member states. The EU’s average standard VAT range is 21 percent, generally between 7 and 20 in the US. The US does not charge a VAT on imports, but businesses have to pay VAT for exports to the EU. 

Various VAT Standards Increase the iPhone Prices

The iPhone orders in the UK and the EU are subject to VAT rates based on the target country. VATs vary by country, and the standard VAT rate in the UK is now around 20 percent. Since the end of the Brexit transition period on 31 December 2020, the UK’s tax rules have changed. VAT applies to imports of goods from abroad and also to sales of goods inside the UK. Apple is one of the most valuable technology companies in the world, valued at over $ 2 trillion in 2021. Apple Europe sales have risen slightly during the first months of 2022. In the first quarter of 2022, Apple’s iPhone market share in Europe grew by one percent, while its competitors fell. The iPhone increased its revenue from 2005 to 2022 after iPhone came to the market. 

European Customers Embrace iPhone 13 

Apple sales in 2022 increased, thanks to the iPhone 13. The iPhone 13 series helped Apple take 62 percent of the global market in the first quarter of 2022. Apple Europe sales have grown, as the sales in the US and China have also grown enormously. The iPhone 13 series support 5G cellular, and their batteries support from 19 to 28 hours of video playback. However, the box only contains the phone and a USB-C lightning cable. The company removed a power adapter and EarPods to be compatible with carbon neutrality programs. The company has suggested using previous adapters and headphones or purchasing new ones, which will charge buyers extra money. Apple sales in 2022 have reached a new hit in the second quarter. On 28 April, Apple announced a strong customer response to its new products. 

Apple Secured Top Place of Best-Selling Smartphone 

Apple’s CFO said strong customer demand for their products helped the company achieve an all-time high. Apple’s board of directors has announced an increase of 5 percent per share of the company’s common stock. The CFO announced that Apple sales in 2022 functioned intensely and generated over $ 28 billion in operating cash flow. The company’s report for its third quarter in 2022 shows higher sales for all products. The new piece for Apple sales in 2022 shows its iPhone sales exceeded Wall Street expectations. The report suggested that demands for iPhone 13 models remain strong. The iPhone 13 introduction in 2021 raised Apple’s sales. This smartphone was a big success for the company, and Apple Europe sales also grew with iPhone 13. In 2022, the iPhone 13 series secured the first top place of best-selling mobile phones.

The iPhone Is Responsible for Half of Apple’s Revenue

In 2021, Apple controlled over 25 percent of the mobile operating system market worldwide. According to Business of Apps, Apple generated 365 billion revenues in 2021, half of which was from iPhone sales. The iPhone 13 launch boosted Apple Europe sales while the company gained a significant share over the last year. Apple sales in 2022 have also grown as the iPhone series are the company’s most important source of revenue. Apple was initially known for its desktop computers, but its smartphones made it a valuable company worldwide. The company’s sales report shows that Apple sales in 2022 increased compared to the previous years. Apple has launched iPhones, iPad, Apple Watch, Air Pod, and MacBook, which have become well-known over the years. The iPhone smartphone is Apple’s most valuable product and is responsible for 50 percent of its revenue.

Inflation Could Decrease Demand for Purchasing iPhone

Apple Europe sales grew despite the invasion of Ukraine by Russia. After the Ukraine crisis, there was a decline in European smartphone shipments. However, Apple’s European market share increased in 2022. The iPhone 14 comes in September, while there are concerns about the impact of inflation on demand for expensive smartphones. War in Ukraine and the energy crisis across Europe are impacting living costs. It could indirectly affect expensive smartphone purchases in Europe. Across Europe, prices are rising significantly by high energy costs. Inflation reached a record in Europe and will remain high throughout 2022 and 2023. As a result, economic activity is slowing and impacts purchasing power. Therefore, the European smartphone market could decline, and Apple Europe sales may most probably see a drop.

Conclusion

Apple Company was founded during the 70s to produce computers. The company is producing various digital products today. It owes around 50 percent of its revenue to sales of iPhone smartphones. Despite high inflations, Apple sales in 2022 have increased during the first quarter. Apple Europe sales also increased during the same period. The company’s revenue has surged after its new product iPhone 13, came to market. Apple is going to sell its new smartphone iPhone 14, in a few weeks. However, inflation and living costs could directly impact the digital market. Since the energy and food prices have caused inflation and the cost-of-living crisis, purchasing power has slowed down. Consequently, Apple sales could experience a decline between late 2022 and 2023.