Tuesday, 2 April 2013

In Brazil Apple Stores, iPhone Pricing Inches Closer To Reality - Forbes

PALO ALTO, CA - APRIL 28:   An Apple Inc., emp...

The iPhone 4 gets a price cut at the Apple Store in Rio, but is still nearly double the price of rival Samsung. The good news is that the Apple smart phone is moving a little closer to prices in the United States. (Image credit: Getty Images via @daylife)

The Apple Store in Rio de Janeiro Brazil says it will be deducting some taxes from the final selling price of their iPhone 4 and 4S in hopes to attract new buyers to company's latest retail store.  With the price cut, over $200 per device, Brazilians are finally paying fairly close to what their American counterparts pay for the same goods.

Globo newspaper in Rio de Janeiro reported Monday that Apple Stores there were now going to start selling the 8GB iPhone 4 for R$989 ($489) and the 16GB iPhone 4S for R$1,529 ($756).

Okay, Brazilians: here's what we Americans pay for the 4 (even though most have moved onto the 5). At Sprint, and with a two year contract, Americans can own an iPhone 4S for $99.99.  If they don't want the contract, then the phone costs $549.99, or $207 less than what Brazilians are paying for it.

Meanwhile, at Verizon, the simpler iPhone 4 will run U.S. shoppers $449.99, just $40 cheaper than it is in Brazil.  The price excludes store deals such as free phone with contract.

Apple has been criticized for selling their phones at such a high premium.  Despite the fact that the premium device market has been Apple's all along, the company says it is trying to make lower cost devices — both smart phones and tablets — for global customers in an attempt to take market share away from lower cost rivals Google and and the Asian names, namely Samsung.

Apple's iPhone 5 is not yet available at the Rio store, but it is available in Brazil for a cool R$2,599 ($1,286).  In the U.S., the 64 GB iPhone 5 sells for around $849 without a contract, around half the price.

What's important in Brazil is not what phones cost in the U.S, but what they cost down there compared to other original equipment makers.  A Samsung Galaxy SIII sells for as low as R$1,199. A Motorola RAZR goes for around R$1,159.

Apple Vs Rivals

For dollar value, divide by two. Price is without contract with service provider. 

Motorola RAZR 8GB: R$1,159
Samsung SIII mini 8GB: R$1,199
Apple iPhone 4 8GB: R$1,599

Motorola RAZR 16GB: R$1,399
Samsung SIII 16GB: R$1,999
Apple iPhone 5 16GB: R$2,899

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