Double-digit inflation and the weakness of the Turkish currency have undermined the purchasing power of Turkish consumers.
Instead of discounts on Black Friday, consumers in Turkey faced a sharp rise in Apple product price after the value of the lira reached new record lows this week.
The lira lost 38% of its value
Some apple products are 25% more expensive than usual on Friday. And in some cases prices have risen by more than the local minimum wage.
Persistent double-digit inflation and the weakness of the Turkish currency have undermined the purchasing power of Turkish consumers, leading to a cost-of-life crisis and pressure on the government to act.
Since the beginning of 2021, the lira has lost 38% of its value against the dollar, beating 13 TYR / USD at one point earlier this week.
Black Friday in Turkey
The iPhone 12 smartphone, one of Apple’s bestsellers, costs £ 10,999 (€ 799.10) on Thursday (November 25). Friday morning, however, its price has already climbed to 13,999 lira. This was an increase of 3,000 lire, which is more than the net monthly minimum wage of 2,825.90 lire.
The price of the iPhone 13 rose from 11,999 to 14,999 lira. This represents an increase of 25%, which is more than the official annual inflation rate, which reached 19.89% in October.
“Today is Black Friday, but guess what we have in this country instead of discounts,” joked one of the Turkish Twitter users.
Apple has suspended online sales
In response to Tuesday (November 23) fall from the lira, Apple temporarily suspended online sales due to additional price adjustments.
The currency crisis comes after President Recep Tayyip Erdogan, who believes the high interest rates bring inflation, which is contrary to orthodox economic thinking, pushed for their reduction. The central bank has been subject to downward pressure on interest rates since September.