We all know that iPhones are expensive, there is no doubt about this. The Apple company has recently announced they had the highest earnings in their history going beyond the threshold of $200 billion, a bit less than what the US spends on federal pensions. Quite impressive it seems.
There is no surprise though regarding the high earnings of Apple. Compared with other phones that have similar specifications, the prices of Apple products go through the roof.
An older version of iPhones, the 5S costs only $200 in the US if you buy it on contract. This happens because phone carriers pay the costs upfront. Thing is that if you get a contract for 2 years, you end up paying a lot more money than if you made a single down payment.
Disregarding the option to buy an iPhone on contract, the average price of a new iPhone is $660. You can buy a pretty good PC with this kind of money. Still, why is the price of iPhones so high and more importantly how does it differ from one country to another?
What is unique to iPhones?
The price could somehow be justified by the features of iPhones. The design is indeed unique, up to the iPhone 6 at least. The Retina display is particular to Apple devices and has twice as more pixels in each direction thus obtaining a quadrupled resolution.
When you buy an iPhone you gain free access to the App Store that has a lot more to offer than Windows and Android. You also get free software updates. Although Android users get them too, iOS updates are released simultaneously for all iPhone models. The software on older Android devices stops being renewed at some point and the newest phones receive the update first.
How much do you pay for an iPhone?
Well, it depends on where you live. If you live in Canada, you enjoy the cheapest price of only $647. US citizens are also happy since they pay only $2 more than Canadians. The next best prices are in Japan $699 and New Zealand $702. Similar prices are found in Malaysia, Hong Kong, Singapore where you pay around $20 more than in Japan.
However, at the other end of the continuum, there are Brazil and Turkey. The most expensive iPhone is sold in Brazil with $1107 followed by Turkey with $1015.Things don’t look good in Hungary, Sweden and Indonesia either where you have to pay $871, $876 and $863 respectively. Moreover, contrary to popular belief that everything is cheap in China, an iPhone is quite expensive: $851.
Still, who can afford it?
In the USA, the cost of an iPhone represents 1.6% of the annual household income whereas in Indonesia this number is equal to 39.3%. This means that an iPhone is cheap for Americans but very expensive for Indonesians due to their low annual incomes. Apart from this, people from Luxembourg (1.9%), South Korea (1.8%) and Hong Kong (2.0%) can easily afford an iPhone whereas the citizens of Philippines (33.2%), India (26.6%) and South Africa (15.7%) can’t.