I'm brazilian and live far from Rio, but this is great news for me It shows Apple is interested in our country as a whole. This means smaller delays in new products, better iTunes store and etc.
Way to go!
Way to go!
That's great for Brazil but I really do wonder why Apple is not prioritising opening retail stores in countries like Singapore where I imagine an average person has a greater buying power to be able to afford an iPhone or a Mac. In fact, the number of resellers who have set up stores in prominent locations in Singapore make me wonder where Apple will decide to open shop when they do eventually go there.
It's such a low number
Obviously, the cost of living in Brazil is lower than in the States, but I'm just surprised at it being that low.
A brand new iPhone there costs over $1000.
The minimum wage in Brazil is about USD 280.71. So, they will earn 7.5 times that. Really, it's not that bad for the country's reality. Most tech support guys doesn't earn near that much here.
Despite the high prices for Apple devices in Brazil (mostly due to high taxes), that salary is very good for such positions.
In fact, I would actually be surprised if ANY Apple retail employee made that much money in the US - they normally as much (or little) money as restaurant waiters.
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Most people in Brazil don't earn just the minimum wage anymore, so that low figure has little relevance nowadays, particularly in big urban centers such as Rio or São Paulo.
Not to mention that high-level C-positions or managerial posts in Brazil have higher average salaries than in the US or most of the world.
It's such a low number…
Obviously, the cost of living in Brazil is lower than in the States, but I'm just surprised at it being that low.
A brand new iPhone there costs over $1000.
Actually the cost of living in a city like Rio is pretty high. I live in the US but everytime I got back to Rio where i was born I am shocked with the prices. More like NY prices. Just a joke.
It's a bubble that will eventually burst.
It's not a bubble; it's just a consequence of the country's continued growth and concentration of wealth in a number of urban centers (Rio included). Most of Brazil's population is now part of the middle class and has much easier access to financing than ever before - at the same time, the rich continue to be rich or even richer, and are more than willing and able to pay for whatever they want.
No wonder a reasonably nice apartment in Sao Paulo now costs an average of USD 500,000, with bigger ones going upwards of USD 1,000,000. Otherwise, you'd have to say that NYC has also had a real estate bubble for years now, which is obviously not the case.
One cannot forget a very basic thing: Apple Retails stores have NEVER catered to the low strata of the population, wherever they are located. The first Apple Store was launched in Tysons Corner, right in the middle of a huge pool of affluent public servants in the D.C. area.
Same now for Rio's Village Mall, which comprises upscale brand stores focused on the rich inhabitants of the city's Southern Zone...Apple couldn't have chosen a better place for its first retail store in Brazil.
And I can easily bet that the next one would be located in places like the Iguatemi Mall in Sao Paulo or similar upscale shopping centers in Brasilia (the federal capital, also FULL of affluent public servants) or Southeastern/Southern Brazil.
There is no doubt Apple will cater the people with money in Brazil. This new store is locate in a very expensive new shopping center. I was just recently there. It's a beutiful expensive upper class mall full of stores like Prada/ Gucci, etc.
As for the bubble as a Brazilian I can tell you it might very well burst. I lived there for 24 years and once I first got the the USA, I have never had credit. It's a new thing for most Brazilians (past two decades maximum) due the huge past history of inflation.
I can see many of my friends and relatives just adding to their credit cards and multiple check payments (something very common in Brazil). Most medium class people are just living well beyond their means.
Real estate prices are out of control as for most services in the country. It will just get higher as the WC and Olympics approach.
I hope they country can sustain this, but I have the feeling they will have a rude awakening in few years.
I am also Brazilian and can tell you that the debt levels of Brazilians are still WAY, but WAY much lower than those of US citizens, who are historically used to having four different credit cards and a terrible culture when it comes to personal savings.
In fact, the great advantage of US citizens is that they are still enjoying the reserve currency status of the USD and cheap imports from Asia, which give them the impression of easy purchasing all over the place with low interest rates (now matter how much debt they have up their necks).
It is obvious, of course, that after the major sporting events of 2014 and 2016 Brazilian prices will undergo some well-needed correction. But do not expect huge falls, because our country is, indeed, growing a lot in terms of wealth and reduced inequality. In the end, real estate will continue to be expensive, particularly in the most sought-after areas, just like what we see in NYC, Paris, Zurich and so on. After all, salaries go up and prices follow that trend...forget about cheap prices in Brazil apart from local food, locally-produced goods like leather and shops in backwater areas.
The Village Mall people will buy Apple stuff in droves no matter how expensive they are; just like the Sao Paulo BMW motorbike store sells the most motorbikes compared to any other BMW store in the world.