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Thread: This Post is Looney

  1. #1
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    This Post is Looney

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    I’m dusting off my crystal bowl to make a prediction; 2016 is going to be a much more expensive year to be a phone nerd in Canada.

    Here’s some background; most manufacturers who sell phones in Canada are a usually run by an office in the States. Sure they have a presence here in Canada but the next step up the ladder usually leads down south.

    As such, their performance is ultimately judged in US dollars.

    A few years ago, the Looney was actually worth more than the Greenback and those were probably good times for them. They’d just pretend the 2 currencies were at par and they’d actually earn a tiny bit more revenue on phones sold here. Mind you, the Canadian market is probably 1/10 what it is down south so there’s more scale down south too but that’s for another article.

    However, the Greenback has been gaining steam the last few years and it’s gone from par to now where it’s worth 40% more than the Looney.

    Consider this, back in 2011 an iPhone 4s on contract would cost you $199 USD or $199 CAN.

    In 2014 a Greenback was worth about 1.1 Looneys and an iPhone 6 would run you $199 USD or $264 CAN. So from par, the iPhone is now 32% more expensive. To be fair, Canada switched from 3 to 2 year contracts around that time so that accounts for a large part of the increase.

    2015 saw the Looney drop further so that one $1 USD = $1.20 Canadian while a 6s which is still $199 in the States is now $400 CAN on contract or 200% more.

    In 2016 we’re now talking about $1 USD = $1.40 Canadian. What will that mean for pricing?

    Well we’re talking about another 17% increase so will the 6s successor cost $450 or more on contract?

    Looking more broadly, while Apple products have gotten a lot more expensive, smaller players like HTC and LG more or less held the line on pricing despite the weaker Looney.

    You see it’s hard to raise prices so I’m guessing they didn’t want to risk market share but at a 40% premium something's gotta give and flagships in general are going to be quite a bit more expensive in 2016.

    How much is anyone’s guess but I wouldn’t be surprised if the LG G4’s successor was $799.99 or something like that.

    So, unless you get paid in US dollars it’s going to cost you a little more to play the phone game.

    Of course, there is usually a small lag between exchange rates and pricing so even if the Looney gets stronger don’t expect prices to fall for a while.

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    It’s time to save yo dolla billz.

  2. #2
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    I guess Howard can't afford a crystal ball with the low loonie.

  3. #3
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    Quote Originally Posted by fruvous View Post
    I guess Howard can't afford a crystal ball with the low loonie.
    Nah, just that the crystal ball manufacturer raised prices 18% after Jan 1st 2016.

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    Quote Originally Posted by howard View Post
    Nah, just that the crystal ball manufacturer raised prices 18% after Jan 1st 2016.
    Anybody who hasn't rushed to buy whatever electronics they need is going to sorely disappointed. Our dollar is going to be at USD 0.65 or less by the summer. This means a 60%-70% surcharge over the nominal USD price.

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    And Canadians will still buy iPhone. iPhone 7 16GB( cause you know it'll still be 16GB even in 2016) will be at $1249 and there will be lineups for it. It'll cost more for phone nerds Howard sure but it will have no impact on Apple.

    Sent from my Nexus 6P using Tapatalk

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    So, in other words, I should order my Nexus 6P immediately. Understood.

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