Apple Inc. (NASDAQ:AAPL) has increased the iPhone prices and iPad devices in Germany as part of the efforts to raise funds for the creative industry in the country. An agreement was reached between German content producers and mobile vendors in the country to hike the price of their devices sold in the market by about 5 to 7 Euros per device. German pornographic filmmakers are among the beneficiaries of the price hike.
Besides Apple Inc. (NASDAQ:AAPL), Samsung Electronics Co td (KRX:005935)(OTCMKTS:SSNLF) and other mobile vendors in Germany will also raise the price of their devices in the country. In dollar terms, the price increase agreed between mobile vendors and German content producers is in the range of $5.50 to $7.70.
Courtesy of copyright law
The agreement between the parties to hike device prices in Germany is predicted on the country’s 1965 copyright law. Courtesy of the law, Germans can make private copies of multimedia content such as images, audio and text. As such, the hike in mobile device prices is aimed at raising royalties for the producers of the content, apparently as part of the compensation for their content being privately copies by smartphone and tablet users.
Apple’s move
As part of the deal with German content producers, Apple Inc. (NASDAQ:AAPL) has increased iPhone 6S and iPhone 6S Plus prices by 5 euros ($5.50) in Germany. The price hike has also affected iPhone 5S, whose price has also gone up by 5 euros. Additionally, Apple has slapped Germany consumers with additional 8 euros on the regular price of iPad Air, iPad Mini, iPad Mini 2 and iPad Pro in the country.
Apple Inc. (NASDAQ:AAPL)’s archrival Samsung and other major mobile vendors are expected to take the same measure to fundraise for Germany’s creative industry.
It is not clear at this juncture how much in royalties is expected to be raised through the arrangement. It is also interesting that the agreement is coming to effect when analysts have been pointing to slowing smartphone sales in developed markets, partly due to market saturation. Apple Inc. (NASDAQ:AAPL) is working on iPhone 7 for release this year. The company is also said to be keen to come up with a revamped iPhone 5S. All of these viewed as part of the efforts to sustain robust iPhone sales growth.
Sources: digitaltrends
