iPhones Too Expensive in India, Says Apple CEO Tim Cook

[apolloa]

Yeah right I BET you want to reduce costs.... over time..... Like never.

I bet Tim Cook had to be air lifted to hospital in a big emergency after admitting his iPhone was 'overpriced'. Must of nearly killed the man!

 

[Shirasaki]

It's wayyyy to expensive here!!!!!

And I even think Apple Watch should be 300 AUD for 42mm model Apple Watch Sport.
Everything Apple in Australia should be a lot cheaper. Aussie daily cost is already high.

 

[Essaux]

Apple's taking the piss. Not just with the iPhones, but especially so with the MacBook.

Entry level 480p (LOL) front camera MacBook starting price point at 1.449 EUROS. That is ridiculous.

 

[MrGuder]

So is this to cut back on the black market of selling iPhones for twice as much as their worth or the high rise in theift of iPhones in India? Did they have this same problem in China? If Apple starts making iPhones in India and ship them to the US and the US consumer has to return that iPhone back to India I hope there are no issues with customs saying they didn't receive the iPhones back for credit and they end up on the black market for higher prices.

 

[psycoperl]

As you demonstrated, without sales tax, it's about $50 more, at most, than the US.

Apple is not guilty because in the US, they don't put sales tax with price and the rest of the world does. Law abiding Americans pay more than $649.

Also, you have not factored in import taxes.

And the fact that the UK, Australia, etc. many countries have 2 years warranty and the US only has 1.

It's funny I just priced the 64gb iPhone 6s Plus w/ AppleCare I paid us$1064.80 for the unlocked phone with tax included.

Compared to same UK prices, £699 with tax (us$1020.89).

It's actually cheaper in UK than in NY.

People complain about prices, you have import taxes and duties which are added to the cost. As demand for iPhone is more inelastic than the supply, the consumer pays the heavier burden of the tax in higher costs.

Additionally in many countries that use vat the tax is included in the sticker price while when sales tax is used its added after at checkout.

 

[RedOrchestra]

"I want the consumer in India to be able to buy at a price that looks like the U.S. price."

Well we're a long way from that in Canada - a 6s 64GB costs (before taxes) $746 US and $1,029 CDN - @ 31% over, phones in India are a steal.

 

[bbeagle]

They're actually too expensive worldwide.

Edit:
A quick sample of pricing:
iPhone 6s Silver 16GB
USA - $649.00 = $649.00 USD
Brazil - R$ 3.999 = $1121.11 USD - that's $472.11 USD extra the customer pays in BR
Great Britain - £449 (£539.00 - VAT £90.00) = $655.36 USD or $786.86 USD including VAT which is what the customer pays - that's $137.86 USD extra the customer pays in GB
Australia - $980 ($1,079.00 - GST $99) = $701.88 USD or $772.78 USD including GST which is what the customer pays - that's $123.78 USD extra the customer pays in AU
Japan - ￥78,800 = $719.19 USD - that's $70.19 USD extra the customer pays in JP

Why are you intentionally not including US taxes?

For example, to buy an iPhone 6s 16GB in New York State costs $707.41 with 9% sales tax.

This would make Japan's cost only $11.78 more, not $70.19 more.

Some charge even more: Tennessee (9.46 percent), Arkansas (9.30 percent), Louisiana (9.01 percent). So, an iPhone 6s in Tennessee costs $710.40

Major cities are different as well. Chicago charges 10.25%. So the same iPhone costs $715.52 in Chicago.

 

[AFEPPL]

Not true! Even when adjusting for taxes and currency, countries outside the USA are being charged much more for iPhone. It seems Apple is unnecessarily inflating pricing in other countries.

The local pricing includes an element of cost of living, this is clearly not the same in every country.
You can't just take a house in Miami and do a current conversion to London, or Melbourne, the world is not that simple..

OK electronics are not as complex, but they do have local market inputs to them not just tax elements. Maybe the reason for the inflated price is something simple like local bribes to operate in that cesspool/market?

 

[69Mustang]

Why are you intentionally not including US taxes?

For example, to buy an iPhone 6s 16GB in New York State costs $707.41 with 9% sales tax.

This would make Japan's cost only $11.78 more, not $70.19 more.

His US taxes aren't included because it doesn't fit his narrative. It's easy to rail about a $100 difference. Not so much about a $10 difference. To be fair, the iPhone cost in certain countries is quite high. But that doesn't mean people should dismiss half the facts just to make a point.

 

[psycoperl]

No, it's not about $50 more, it's much more. Be accurate, be exact please.

How Apple treats all taxes is really irrelevant, the the final price that the customer pays is what's important here. The price customers pay when they leave the Apple shop.

Just in those sample countries, the customer at the checkout pays:

Great Britain - $137.86 USD extra
Australia - $123.78 USD extra
Japan - $70.19 USD extra


iPhone 6s Silver 16GB
USA - $649.00 = $649.00 USD
Great Britain - £449 (£539.00 - VAT £90.00) = $655.36 USD or $786.86 USD including VAT which is what the customer pays
Australia - $980 ($1,079.00 - $99) = $701.88 USD or $772.78 USD including GST which is what the customer pays
Japan - ￥78,800 = $719.19 USD

Further, according to Apple's site, iPhone's in the above sample countries come with an Apple One (1) Year Limited Warranty. Any other additional guarantees a country might offer as protection from defective devices is up to that country, it has nothing to do with the price customers pay when they leave the Apple shop.

The additional protections are an increased "cost of production" or cost of supplying the good to the consumer as they have to factor in the costs of the additional warranty, this will have an effect in rising the price of the good in that markets that have this requirement. Simple microeconomics.

 

[samcraig]

His US taxes aren't included because it doesn't fit his narrative. It's easy to rail about a $100 difference. Not so much about a $10 difference. To be fair, the iPhone cost in certain countries is quite high. But that doesn't mean people should dismiss half the facts just to make a point.

How much do iPhones cost in Ireland. I mean - that's where so much of Apple's money is - I feel like the Irish shouldn't have to pay import taxes

 

[smacrumon]

Why are you intentionally not including US taxes?

For example, to buy an iPhone 6s 16GB in New York State costs $707.41 with 9% sales tax.

This would make Japan's cost only $11.78 more, not $70.19 more.

Some charge even more: Tennessee (9.46 percent), Arkansas (9.30 percent), Louisiana (9.01 percent). So, an iPhone 6s in Tennessee costs $710.40

Major cities are different as well. Chicago charges 10.25%. So the same iPhone costs $715.52 in Chicago.

And... in Alaska, Delaware, Montana, New Hampshire, Oregon etc, it would make it $70.19 USD extra the customer pays in Japan. So please be a bit more representative.

So as you would know, some states include 0% taxes in the USA, with the majority of states less than 5% tax. I’m referring to Apple's lowest pricing for comparison at http://www.apple.com/shop/buy-iphone/iphone6s There isn't enough space to list all 50 states here.
[doublepost=1464091760][/doublepost]

His US taxes aren't included because it doesn't fit his narrative. It's easy to rail about a $100 difference. Not so much about a $10 difference. To be fair, the iPhone cost in certain countries is quite high. But that doesn't mean people should dismiss half the facts just to make a point.

 

[ericwn]

Well, the galaxy s7 you're talking about has 32 GB of internal storage and has an SD card slot for future expansion plus most of Google's services work in India so you can't really compare the price.

Google services work on iOS too. So yes we can still look at the price which is higher than an iPhone entry price and equally unaffordable by the very same customers.

 

[Rob198612]

Tim cook should lower the price then if it thinks it's too expensive

 

[RedOrchestra]

Tim cook should lower the price then if it thinks it's too expensive

Well, there goes the stock play that Apple so much is.

 

[FieldingMellish]

Overpriced, rather than too expensive. That's a good one. I'll run that phrase by one of my customers just to see the expression on their faces.

 

[smacrumon]

The additional protections are an increased "cost of production" or cost of supplying the good to the consumer as they have to factor in the costs of the additional warranty, this will have an effect in rising the price of the good in that markets that have this requirement. Simple microeconomics.

Apple only offers a Apple One (1) Year Limited Warranty across all those sample countries according to Apple's own website. Apple's obligations to act accordingly under laws in the countries they market their products is their own problem, not the customer's when they reach the checkout.

 

[2010mini]

They're actually too expensive worldwide.

Edit:
A quick sample of pricing:
iPhone 6s Silver 16GB
USA - $649.00 = $649.00 USD
Brazil - R$ 3.999 = $1121.11 USD - that's $472.11 USD extra the customer pays in BR
Great Britain - £449 (£539.00 - VAT £90.00) = $655.36 USD or $786.86 USD including VAT which is what the customer pays - that's $137.86 USD extra the customer pays in GB
Australia - $980 ($1,079.00 - GST $99) = $701.88 USD or $772.78 USD including GST which is what the customer pays - that's $123.78 USD extra the customer pays in AU
Japan - ￥78,800 = $719.19 USD - that's $70.19 USD extra the customer pays in JP

I see for England, Austrailia and Japan you added the Tax. But you did not for the US. Why not? Wouldn't your comparison be more accurate if you included the US price with tax?

 

[LovingTeddy]

In comparison to what? The Galaxy S7 Edge? $822? iPhone 6s $649, 6s Plus $749. You think any decent smart phone is cheap anywhere in the world?

Samsung Galaxy s7 in India ₹ 48,500. iPhone 6S in india ₹ 44,500. Who's expensive again?

You do know that Samsung and other OEMs has lower tire and lower prices smartphone in India and other countries right? What is the lowest prices iPhone you can find in India?

It is not like Apple is selling midrange entry level priced iPhone.

If you look at that way, yes, iPhone is too expensive, even for iPhone SE. While you can certain find better prices phone in India and other countries

 

[TallManNY]

And... in Alaska, Delaware, Montana, New Hampshire, Oregon etc, it would make it $70.19 USD extra the customer pays in Japan. So please be a bit more representative.

So as you would know, some states include 0% taxes in the USA, with the majority of states less than 5% tax. I’m referring to Apple's lowest pricing for comparison at http://www.apple.com/shop/buy-iphone/iphone6s There isn't enough space to list all 50 states here.
[doublepost=1464091760][/doublepost]

There are many other things in the supply chain and local costs at the stores that add costs to doing business outside of the U.S. For example, employees get more and longer vacations in most countries than they do in the U.S. (typical in the U.S. for low level employees is no paid vacation days and for the middle class: 10 days) and the employer pays for that. There are also several more national holidays in most countries than there are in the U.S. It isn't just the taxes. Calling it theft to charge higher prices isn't right.

And as far as sales tax goes, the more populous States in the U.S. generally have higher sales tax. So most Americans are subjected to higher sales tax even if you just count States as units and see that many don't have high sales tax.

 

[FieldingMellish]

Maybe Cook could explain overpriced versus too expensive when it lands on the subject of letting existing tech workers go, only after having trained their Indian counterparts destined to replace the existing tech workers.

 

[2010mini]

In comparison to computer devices in general. Computers are a basic human right. There is no reason why iPhone, with its insanely cheap manufactured cost price, is incredibly expensive and overpriced making it unattainable for many individuals.

No one is going to suffer because they can't afford premium, non essential electronics. If you can't afford it. Buy something else in your price range.

I'm sure in some parts of the word Fords are unattainable for many individuals. I don't see anyone lamenting that.

 

[bbeagle]

And... in Alaska, Delaware, Montana, New Hampshire, Oregon etc, it would make it $70.19 USD extra the customer pays in Japan. So please be a bit more representative.

ME be a bit more representative? I was. YOU made a blanket statement that said sales tax in the US was 0%.

You didn't mention that less than 5% of Americans (who live in those small population states) actually pay 0%. 95% of Americans pay 5% or more.

Oh, and many parts of Alaska pay up to 7.5% taxes, not 0%. Some parts do, but many parts don't. You could be a bit more representative.

http://www.sale-tax.com/Alaska

And I didn't include the highest - 13.5% in parts of Alabama.

 

[smacrumon]

I see for England, Austrailia and Japan you added the Tax. But you did not for the US. Why not? Wouldn't your comparison be more accurate if you included the US price with tax?

Some USA states include 0% taxes in the USA, with the majority of states less than 5% tax. I’m referring to Apple's lowest pricing for comparison at http://www.apple.com/shop/buy-iphone/iphone6s There isn't enough space to list all 50 states here, I'm referring to Apple's lowest pricing advertised for comparison.
[doublepost=1464094941][/doublepost]

ME be a bit more representative? I was. YOU made a blanket statement that said sales tax in the US was 0%.

You didn't mention that less than 5% of Americans (who live in those small population states) actually pay 0%. 95% of Americans pay 5% or more.

Not sure how you got that conclusion. Some states include 0% taxes in the USA, with the majority of states less than 5% tax.

Even further, if you refer to your own link www.sale-tax.com, the average state rate of tax from all states is 5.05% in the USA. Even with that factored in, that still represents much higher pricing in other countries around the world.

I’m referring to Apple's lowest pricing for comparison at http://www.apple.com/shop/buy-iphone/iphone6s There isn't enough space to list all 50 states here, I'm referring to Apple's lowest pricing advertised for comparison. I've also included in the comparisons the prices with and without taxes. No blanket statements here.

 

[maxsix]

I'm rather surprised that Tim Cook remarked about the price of an iPhone. He's opened a can of worms that'll surely change things.

It's not that I don't agree that iPhones are too expensive, but Apple's Empire was built based on charging huge prices. Operating on very high gross profits and having the cult of Apple fans bragging about it was Apple's finest accomplishment.

Now he's opened the door to price discussions...