Apple increased by 20 percent the price of iPad tablet in Japan starting Friday following depreciation of the yen, the most noticeable effect so far, from the Japanese population’s point of view, of the controversial economic recovery plan adopted late last year by Prime Minister Shinzo Abe.
Apple has increased by 16,000 yen ($159) the price of iPad in Japan, causing thousands of consumers to storm the stores in search of tablets that are still in stock, and sold for the old price, according to the Financial Times. The news about Apple’s decision was Friday the most read article on national television NHK website. One U.S. dollar is worth ¥100.66 today.
In the last two weeks, several luxury brands, including Channel, Fendi, Prada and Dior, have announced price increases on the Japanese market following the depreciation of the yen. The yen depreciated by about 20% since last December, when Prime Minister Abe has launched an ambitious plan to revive the economy after 15 years of deflation that blocked consumption.
Although many economists believe that the Bank of Japan will fail to attain the inflation target of 2% in the next two years, the economy began to show positive signs: prices in Tokyo rose in May for the first time in four years, by 0.1%, according to official data announced Friday.
Japanese yen depreciation increases export competitiveness, strengthening corporate profits and supporting economic growth. Abe is quoted in polls with 70% in terms of popularity as the Tokyo Stock Exchange went up by 50 percent since the beginning of his term.
The relationship between Japanese population welfare and yen’s exchange rate, however, is more complicated than in the past. Currently, Japan imports more than it exports, following the 2011 disaster at the nuclear plant in Fukushima, which increased demand for oil and gas, but also as a result of the gradual transfer of production to countries that offer lower labor costs.
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