Outrageously Priced iPhone 4S Launches in Brazil and Chile
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Posted December 16, 2011 at 2:38pm by iClarified
The iPhone 4S has just launched in Brazil with a price that is over double the cost of the phone in the U.S.A, reports TNW.
Looking at the chart below we can see that the 64GB iPhone 4S costs $1,830 USD in Brazil. That is over twice the amount of the 64GB iPhone 4S sold in the U.S. which costs $849.
iG Economia has examined the price breakdown for the device and attributes 46.76% of the cost to import taxes. Foxconn has reportedly started production of iPhones in the country with shipments expected to leave the factory in January. Those devices should result in much lower prices for Brazilians since they wouldn't be subject to as many import taxes.
Chile's pricing is more reasonable than Brazil but a 64GB iPhone 4S will still cost about US$1425 through Vivo.
That graph is really bad. It makes it seem visually that the iPhones in brazil are 300-400% the normal price, though it's only about 230%. Y-axis should start at 0 to avoid deliberate misrepresentation. For al those who think I'm being too pedantic...
It is really ease to calculate that, even though the taxes are ridiculous high in Brazil, the Apple Store is selling with a much higher margin than in the USA. The idea behind it is to take advantages of the high upper social class that will buy it no matter what. This is Brazil!
Attention people !! Iphone 4s 64gb in Brazil : U$ 1900....Round Trip Ticket to NY with 2 days in Hotel and iPhone 4s 64gb in the Apple Store NY : U$ 1860.00....New York, i´m coming next week !!!! hahaha
Easy TA, that's not entirely true!
Yes, the import taxes are high. But, in this case, is not a good excuse.
If you think about it, currency plus a 50% taxes would make iPhone reach hardly R$2000! that's US$1.111,00 for a phone!
So Apple is kind of forcing higher prices here. And I'm not sure why.
This is not a news at all. Well, at least not to me. Brazil has a history of higher than average prices (in any cases, has the higher price in the entire world) for almost anything. Even with taxes raising prices near 50% more than US, there is another thief robbing citizens: the so-called "Brazilian price", courtesy of the sellers themselves. Here companies prices as "whatever they feel people will pay" and turn out people do buy at that price. This provides, ie in the car markets, a healthy 100% bonus over the manufacturing product price+taxes. That means, they sell one and earn enough to pay two. Back to the iPhone 4S, this is no different. People will pay whatever carriers feels phone should be sold at. Next time you think were to sell something, well, now you know.
Agreed, this shouldn't be the case in Chile, import taxes plus VAT are around 30%, thats way less than the current price. Even the original iphone4 was priced much lower.
Apple sells the phone for same price, if you read the article you'll see that it's actually your government who is adding a "luxury" tax by imposing steep import duty.
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