Apple Lowering iPhone Prices in Some International Markets to Boost Sales

[Gilligan's last elephant]

Um.... Yes....

This is how businesses work. Warranties are built into the price.

Is your post missing the /s?

Unbelievable.
Samsung and others seem to cope quite well with 2 year warranties.
iPhone Xs costing $999 in USA costs £999 in UK.
Note 9 costs $999 in USA but £899 in UK. How do they manage?
Best way to cope with 2 year warranties is to sell reliable devices.

 

[meme1255]

This does sound like a US$380 difference when factoring the VAT.

I am not familiar with the Czech Republic's consumer protection laws, nor any type of regulation fees that may increase the price even more. Do you think there might be some?
[doublepost=1548807545][/doublepost]
See this post:



Does this mean education pricing?

Yes, it does mean education pricing (for both Austria and Czechia) – 6 % in both countries so it makes (proportionally) no difference. We have standard EU consumer protection law and we do not have any special fees I am aware of. It's just Apple simply charges more.

 

[SBlue1]

And they should start with Europe, where the iPhone XS starts at 1149€ ($1299) as opposed to US' $999.

In Germany it's 1149 Euros with 19% sales tax, so 965 Euros without. In the US its $999 without tax. So in Germany it's not that big of a difference if you convert Dollars to Euros. Not trying to justify it, just saying you have to compare the correct numbers.

Oh and don't forget the 10 Euros GEMA copyright fee on smartphones that's calculated into the price.

 

[Rob_2811]

In Germany it's 1149 Euros with 19% sales tax, so 965 Euros without. In the US its $999 without tax. So in Germany it's not that big of a difference if you convert Dollars to Euros. Not trying to justify it, just saying you have to compare the correct numbers.

Oh and don't forget the 10 Euros GEMA copyright fee on smartphones that's calculated into the price.

Yes you have to take into account US sales taxes but even doing so its around 200 euro difference. Not that big a difference ..

 

[falainber]

Apple is basically adjusting for currency fluctuations...

That's opposite of adjusting for currency fluctuations. "Adjusting for currency fluctuations" is what made iPhones prohibitively expensive in emerging markets in a first place (because their currencies collapsed against the $US0. That and the increase of iPhone process in US dollars too which was probably the most significant factor. Emerging markets are just getting a small reprieve. Until Apple drop the prices in US dollars (everywhere) they can forget about any recovery in sales.

 

[Juicy Box]

Unbelievable.
Samsung and others seem to cope quite well with 2 year warranties.
iPhone Xs costing $999 in USA costs £999 in UK.
Note 9 costs $999 in USA but £899 in UK. How do they manage?
Best way to cope with 2 year warranties is to sell reliable devices.

Maybe Samsung has better quality phones? Maybe they are eating warranty cost to obtain more marketshare? IDK....

I was just pointing out that it is common business practices to incorporate estimated warranty claims in the price of products.

If a business estimates their warranty claims for a product with a one year warranty will be 1 out of every 100 units sold, and they are shooting for a particular profit margin, they will include the cost of the warranty claims into the unit price.

If they have a two year warrant and have a claim with 5 out of every 100 units sold, they will adjust the unite price to meet their desired profit margin.

There is a cost for warranties built into every item sold, and things like consumer protection laws just spread the cost of all the increased warranty claims to everyone instead of the people that wanted extended warranties.

Consumer protections can be really nice, but people have to understand that the cost of their laws are being passed down to the consumer.
[doublepost=1548809905][/doublepost]

It's just Apple simply charges more.

Maybe it is. I didn't start posting this stuff about VAT and consumer protection laws to defend Apple, I was just pointing out that there are costs, taxes, and fees that people forget about when comparing prices.

Maybe the difference in cost has to do with regulatory fees, and the cost to do business in that area. Or maybe it is, like you said, Apple just charging more.
[doublepost=1548809974][/doublepost]

Best way to cope with 2 year warranties is to sell reliable devices.

Or just pass the cost to the consumer....

It has been happening for a long time now....

 

[Wanted797]

And they should start with Europe, where the iPhone XS starts at 1149€ ($1299) as opposed to US' $999.

Remember the US doesn't advertise tax in their prices.
[doublepost=1548810868][/doublepost]

start with Australia fark mate

Oh but imagine all the whingers who'd complain to Telstra, Optus etc. because they're paying more from when they bought it...

 

[watakoola]

Remember the US doesn't advertise tax in their prices.
[doublepost=1548810868][/doublepost]

Oh but imagine all the whingers who'd complain to Telstra, Optus etc. because they're paying more from when they bought it...

Me! Just signed up two days ago for 2 x XRs on a plan. Geez.

 

[Superhai]

You better do it here too

Don’t know where here is. But if it is too expensive don’t buy it. No one are forced to buy Apple products.
Apple set their prices according to demand as do any other commercial business.
If people don’t buy, you will either have to adjust price or the product. If people are willing to buy at the price you set, the price is right.

 

[Wanted797]

Me! Just signed up two days ago for 2 x XRs on a plan. Geez.

Like them people who complain when their TV goes on sale 3 weeks later.

 

[tubomac]

Hey Tim! you just realized that your iPhones are a little bit too pricey! what a genius you are!
You always talk about WORLD WIDE SALES but you forget that there are other countries (like many inside the E.U.) that their economies are far less strong than the one in the USA and guess what? there your iPhones are far more expensive although salaries are cheaper! your last iPhone Xs starts at 1,400 dollars, (about 1200 Euros) that is about the price of a good laptop. Nobody buys a laptop every year and for the same reason nobody buys a new iPhone every year. So don't be surprised if the sales are not good like last year. You say that your products are made to last! I hope you don't see this as a problem otherwise, I don't think it will be a good idea to keep the same price and make in the future products who don't last.

 

[Liam555]

I love all these americans complaining about the price. You guys have it the best, you can't get angry at other countries for wanting a similar price the the US. Here in england a XS Max is roughly $1450 instead of $1100. That would have saved me £300 if changed to US pricing. Thats an insane amount of money just for living in another country.

 

[malachiman]

And they should start with Europe, where the iPhone XS starts at 1149€ ($1299) as opposed to US' $999.

iPhone XR starts at $1399 NZD here in New Zealand. The iPhone XS starts at low $1899 and up to $2799 for the 512gb model.

 

[falainber]

I love all these americans complaining about the price. You guys have it the best, you can't get angry at other countries for wanting a similar price the the US. Here in england a XS Max is roughly $1450 instead of $1100. That would have saved me £300 if changed to US pricing. Thats an insane amount of money just for living in another country.

Americans pay this delta (and more) on health care. So no free lunch here.

 

[tsubikiddo]

Here down under, half the price and it’s about right

 

[sakurarain]

Agreeing with you, but surprisingly Korea does the same with their Galaxy phones. Most of my Korean friends buy their Galaxy phones in the US than in the motherland haha.

the same as Lenovo, my chinese friend purchased a laptop in Dec. and the price in US is only 70% as in china, ahahaha

 

[sundog925]

Really? US doesn’t make up most of the sales. And 2, they already explained the FX rates with the strong dollar is why they lowered them in other countries.

actually, THEY DO according to Apple but whatever dude.

 

[Baymowe335]

That's interesting. I am pretty sure it was only about 4 hours ago that you have said, and I quote;

"No, prices aren't too high in all markets ..."

So, how do you feel about Tim Cook "rethinking" about pricing of iPhones?

Um, that statement is still true. He’s not rethinking the price of iPhones in all markets or even many markets. He was specifically talking about emerging markets where currencies have collapsed.

No price changes in markets that set records, like the US, Canada, Western Europe, Korea, Mexico, etc.

Details are key. Nice try though.

 

[DeepIn2U]

If this isn't an admission iPhones are too expensive I don't know what is.

Exactly the JIG IS UP Apple, Tim!

For all the pompous and qualified members that corrected me on my opinion which was a growing consensus of pricing being a major issue the proof is here. Straight from the horses mouth, no longer conjecture, no longer incorrect opinion!

OPPO, Huawei, and another have grown in sales and revenue. Analysts say the market has fallen in China overall, yet we need to consider did the consumer market upgrade already last quarter to Apple and competitors OR is there a major waiting period for Samsung’s Galaxy S 10 foldable halo phone?!

Either way; if no upgrades happen and if the installed base drops from now to next quarter and if there is a double digit drop in existing installed user base of users there currently on iPhone, occurs with major update in sales in S10 devices after announcement- that’s going to severely affect Apples $10B services revenue!!
[doublepost=1548818414][/doublepost]

Um, that statement is still true. He’s not rethinking the price of iPhones in all markets or even many markets. He was specifically talking about emerging markets where currencies have collapsed.

No price changes in markets that set records, like the US, Canada, Western Europe, Korea, Mexico, etc.

Details are key. Nice try though.

Actually you’re incorrect. On the earnings call he specifically stated pricing for markets outside the US.

 

[Baymowe335]

Exactly the JIG IS UP Apple, Tim!

For all the pompous and qualified members that corrected me on my opinion which was a growing consensus of pricing being a major issue the proof is here. Straight from the horses mouth, no longer conjecture, no longer incorrect opinion!

OPPO, Huawei, and another have grown in sales and revenue. Analysts say the market has fallen in China overall, yet we need to consider did the consumer market upgrade already last quarter to Apple and competitors OR is there a major waiting period for Samsung’s Galaxy S 10 foldable halo phone?!

Either way; if no upgrades happen and if the installed base drops from now to next quarter and if there is a double digit drop in existing installed user base of users there currently on iPhone, occurs with major update in sales in S10 devices after announcement- that’s going to severely affect Apples $10B services revenue!!
[doublepost=1548818414][/doublepost]

Actually you’re incorrect. On the earnings call he specifically stated pricing for markets outside the US.

I listened to the call. Find the quote you’re talking about and we will analyze it. He’s not talking about Western Europe, for sure, as an example because many of those countries set records, like Germany, Spain, and Italy.

 

[Gonzbull]

Here in New Zealand the top of the line XS Max with 512G is $2799. Pretty crazy. Can’t imagine there’s many of those floating around here.

 

[G5isAlive]

Ignorant. Apple stuff costs double in Brazil, for example an iPhone XS starts at R$7299 which is roughly $2000 in US currency. They place a 100% tariff on devices manufactured outside the country. So most people either don’t buy Apple, or if they do they buy when they’re in Europe or North America.

Seriously? No sense of humor.
[doublepost=1548820273][/doublepost]

Mardi Gras in the state of Louisiana is pretty nice too, or is that the joke?

Apparently it was a lame joke lol. But ... been to New Orleans and it’s good, but nothing competes with Carnival in Rio.

 

[Sevanw]

Hahahaa, and the markets with the most diehards (North America) get NOTHING. That's what happens when you all get lined up year after year in front of a store and scream TAKE MY MONEY!!! You, as an Apple loyalist, who never criticizes the mother ship and is quick to make excuses for the poor quality hardware and buggy software, will NEVER get respect from Apple in the form of a price cut. Apple know they got you no matter what. YOU, as an Apple loyalist, fed this greedy monster to become the even greedier monster that it is today, and now it's feeding off you. Enjoy.

 

[Martius]

This does sound like a US$380 difference when factoring the VAT.

I am not familiar with the Czech Republic's consumer protection laws, nor any type of regulation fees that may increase the price even more. Do you think there might be some?

Nothing special actually. We have 2 years warranty instead of 1 year, but for example in Switzerland they also have 2 years warranty and the base 15" MacBook Pro costs there 2700 CHF (including VAT) = 61000 CZK. Apple should really check their exchange rates (USD to EUR to CZK), because this is really not fair.

 

[2GoldFish]

Um, that statement is still true. He’s not rethinking the price of iPhones in all markets or even many markets. He was specifically talking about emerging markets where currencies have collapsed.

No price changes in markets that set records, like the US, Canada, Western Europe, Korea, Mexico, etc.

Details are key. Nice try though.

I see, so Apple has only half screwed up? Got ya.