Tokyo: For years, Japanese consumers eagerly spent money on the latest technology, but now that the yen is falling, some people can no longer afford the new iPhone, which has spawned a growing second-hand market for Apple.

The Japanese yen's fall to a 32-year low against the US dollar has weighed on consumers and caused widespread spending changes in the world's third-largest economy. Industry observers claim that Japanese consumers are now more inclined to buy used items, partly due to the growth of online auction sites.

In July, Apple increased the price of the entry-level iPhone 13 by about a fifth. Later, the entry-level iPhone 14 was launched for 20% more than the iPhone 13, despite the US price remaining unchanged at US$799. The yen has been particularly hard hit, falling 22%, as the dollar has risen against other currencies this year.

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Koru Nagase, a salaried person, wanted a new phone, but couldn't justify spending the iPhone 14's starting price of 119,800 yen ($814). Instead, they cost much less than the used iPhone SE 2 at Tokyo's Akihabara electronics hub.

"The iPhone 14 is too expensive for me to buy, costing over 100,000 yen." If the battery lasts for ten years, it will be fine, he said. He said the 2020 release of the iPhone SE 2, which didn't have the dual rear cameras of the iPhone 14, struck a "good balance" between price and features.

For this story, Apple declined to comment. However, an annual regulatory filing made last month said the weaker yen was attributed to a 9% drop in Japan's sales for the year ended September 24.

A stronger dollar has driven up prices for some of Apple's products, but the company's chief financial officer, Luca Maestri, admitted to analysts last month that sales in Indonesia, Vietnam and other markets with hard currencies grew in double digits.

According to market research firm MM Research Institute, sales of used smartphones in Japan grew nearly 15% in the most recent fiscal year to a record 2.1 million and are projected to reach 3.4 million by 2026.

After one of the two personal devices Taishin Chonen developed a crack in the screen, he decided to buy a used iPhone 13. Compared to its previous iPhone 7, the replacement has a better camera, battery, and resolution.

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I am buying a used phone for the first time; Till now, I had only bought new phones, said the 23-year-old. "The new model costs a lot of money."

When taxes are taken into account, the iPhone 14 sold in Japan is the least expensive of 37 countries, according to a September survey by the MM Research Institute. Further yen weakness could cause Apple to increase prices once again, potentially reducing its 50% market share of smartphones in Japan, according to the research firm.

According to Daisuke Inoue, CEO of Belong, a division of Itochu Corp, a trading company that sells used smartphones and tablets online, the price of the most recent iPhones is now above the 100,000 yen mark, a "major psychological barrier" for many consumers. Is.

According to Inoue, Nicosuma's average sales have tripled since Apple increased prices in July compared to the average of the previous three months.

Shipments of used phones were unboxed and sorted at Belong's operations center outside Tokyo before being checked, grading and cleaned by rows of employees sitting at long tables.

The phone was then captured from different angles for sale online. According to Inoue, where the best prices are, Belong uses Itochu's global network to help it source used equipment in Japan and abroad.

According to him, some of the technology is bought from companies, such as tablets that were earlier used in taxi displays or for payments in cafes.

Although many Japanese people have historically been wary of used goods, including electronics, this is changing.
Mercari, Inc. According to a spokesperson for Mercari, there has been a significant increase in sales of used smartphones on the marketplace website Mercari, and sales of electronics and home appliances have also increased.

With Japan once again welcoming visitors from overseas, the used iPhones market is expanding. According to retail chain Iosys Co Ltd, in the last two months, there has been an increase in sales of used iPhones from foreign tourists.

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"The yen just keeps getting weaker," said Iosys executive Takashi Okuno. "The trend of going to Japan and buying an iPhone is on the rise again."