iPhone in China to become even more expensive

The iPhone, which is already the most expensive smartphone in China, is about to get even more expensive, the media have reported on Wednesday.

The additional jump in price is attributed to the devaluation of yuan.

The Chinese currency is set to drop by 1.9 per cent in the wake of weak exports, which is why Apple is expected to pass on the loss in revenue to customers by raising the price of their smartphones.

Even though Apple's CEO recently said he expects China to become the company's most important market in the future, their smartphones currently sit at the number three spot in the country.

According to the latest information by Canalys, Xiaomi has reclaimed the number one position climbing to a 15.9 per cent market share in China.

Apple has also been overtaken by Huawei, which is extremely close behind Xiaomi on 15.7 per cent – and indeed Huawei has seen massive growth, up 48 per cent in terms of sales on the last quarter.

China is the company's second biggest market in terms of revenue, generating $13.2bn (£8.5bn) in the three months to the end of June.

But it's not only the Chinese consumers who are taking a hit here, Apple will also feel the consequences of the devaluing yuan.

According to a report by IB Times, when something like the currency devaluation happens, Apple's share price takes a hit, dropping over 5 per cent on Tuesday following the announcement.

The iPhone 6 currently costs CN¥5,288 in China, which translated to £555 before the devaluation, but now translates to £527, which is a significant enough drop to force Apple's hand and increase the price.