iPhone 12 The sad state of the iPhone in Brazil

[skaertus]

The iPhone has been a popular phone in Brazil, although it is vastly sold by Android devices. But this time Apple is set to release perhaps one of the least-selling iPhones ever in my country. The reason for that is the steep increase in prices the iPhone has been going through.

The cheapest iPhone 12 is going to sell for about USD 1,250 (the cheapest one), which is very expensive, but it has always been this way. The problem now the exchange rate is very unfavorable, which caused Apple to increase the prices of the new iPhones (in local currency) by about 50% on a year-to-year basis. Prices of the iPhone keep going up and up due to taxes and devaluating currency.

The cheapest iPhone 12 will cost six times more than the first iPhone ever released in the country (the 3G back in 2009), an increase far greater than inflation. As this year, people will have a hard time buying iPhones in the U.S. (like they did in the past) due to the pandemic, the iPhone 12 is expected to be scarce around here.

I compiled the information below, with the launch prices of all iPhone models in both U.S. and Brazil (the * means that the iPhone is only available with a contract with a carrier). iPhones are becoming more and more expensive and unaffordable.

My last one was an iPhone X and I do not expect to buy another one in the near future (especially since, with ever-increasing prices, I never know how much more additional money I will have to spend to buy the next model). Android phones are catching up and even the high-end models are much cheaper. I bought a Samsung Galaxy S20 Plus with 128 GB for far less than an iPhone XR with 64 GB. And the Samsung Galaxy Fold 2 (the most expensive non-Apple phone in Brazil) is cheaper than the high-end iPhone 12 Pro Max. So you have an idea of how inflated Apple prices are...

Model / screen size / launch price in U.S. (in USD) / launch price in Brazil (in BRL)

2007

iPhone (4 GB) 3.5-inch $499.00* [N/A]
iPhone (8 GB) 3.5-inch $599.00* [N/A]

2008

iPhone 3G (8 GB) 3.5-inch $599.00 BRL 1,199*
iPhone 3G (16 GB) 3.5-inch $699.00 BRL 1,499*

2009

iPhone 3GS (16 GB) 3.5-inch $599.00 BRL 1,499*
iPhone 3GS (32 GB) 3.5-inch $699.00 BRL 1,999*

2010

iPhone 4 (16 GB) 3.5-inch $599.00 BRL 1,699*
iPhone 4 (32 GB) 3.5-inch $699.00 BRL 1,999*

2011

iPhone 4S (16 GB) 3.5-inch $649.00 BRL 2,599
iPhone 4S (32 GB) 3.5-inch $749.00 BRL 2,999
iPhone 4S (64 GB) 3.5-inch $849.00 BRL 3,399

2012

iPhone 5 (16 GB) 4-inch $649.00 BRL 2,399
iPhone 5 (32 GB) 4-inch $749.00 BRL 2,699
iPhone 5 (64 GB) 4-inch $849.00 BRL 2,999

2013

iPhone 5c (16 GB) 4-inch $549.00 BRL 1,999
iPhone 5c (32 GB) 4-inch $649.00 BRL 2,399

iPhone 5s (16 GB) 4-inch $649.00 BRL 2,799
iPhone 5s (32 GB) 4-inch $749.00 BRL 3,199
iPhone 5s (64 GB) 4-inch $849.00 BRL 3,599

2014

iPhone 6 (16 GB) 4.7-inch $649.00 BRL 3,199
iPhone 6 (64 GB) 4.7-inch $749.00 BRL 3,599
iPhone 6 (128 GB) 4.7-inch $849.00 BRL 3,999

iPhone 6 Plus (16 GB) 5.5-inch $749.00 BRL 3,599
iPhone 6 Plus (64 GB) 5.5-inch $849.00 BRL 3,999
iPhone 6 Plus (128 GB) 5.5-inch $949.00 BRL 4,399

2015

iPhone 6s (16 GB) 4.7-inch $649.00 BRL 3,999
iPhone 6s (64 GB) 4.7-inch $749.00 BRL 4,299
iPhone 6s (128 GB) 4.7-inch $849.00 BRL 4,599

iPhone 6s Plus (16 GB) 5.5-inch $749.00 BRL 4,299
iPhone 6s Plus (64 GB) 5.5-inch $849.00 BRL 4,599
iPhone 6s Plus (128 GB) 5.5-inch $949.00 BRL 4,899

[2016]

iPhone SE (16 GB) 4-inch $399.00 BRL 2,699
iPhone SE (64 GB) 4-inch $499.00 BRL 2,999

2016

iPhone 7 (32 GB) 4.7-inch $649.00 BRL 3,499
iPhone 7 (128 GB) 4.7-inch $749.00 BRL 3,899
iPhone 7 (256 GB) 4.7-inch $849.00 BRL 4,299

iPhone 7 Plus (32 GB) 5.5-inch $769.00 BRL 4,099
iPhone 7 Plus (128 GB) 5.5-inch $869.00 BRL 4,499
iPhone 7 Plus (256 GB) 5.5-inch $969.00 BRL 4,899

2017

iPhone 8 (64 GB) 4.7-inch $699.00 BRL 3,999
iPhone 8 (256 GB) 4.7-inch $849.00 BRL 4,799

iPhone 8 Plus (64 GB) 5.5-inch $799.00 BRL 4,599
iPhone 8 Plus (256 GB) 5.5-inch $949.00 BRL 5,399

iPhone X (64 GB) 5.8-inch $999.00 BRL 5,999
iPhone X (256 GB) 5.8-inch $1,149.00 BRL 6,999

2018

iPhone XR (64 GB) 6.1-inch $749.00 BRL 5,199
iPhone XR (128 GB) 6.1-inch $799.00 BRL 5,499
iPhone XR (256 GB) 6.1-inch $899.00 BRL 5,999

iPhone XS (64 GB) 5.8-inch $999.00 BRL 7,299
iPhone XS (256 GB) 5.8-inch $1,149.00 BRL 8,099
iPhone XS (512 GB) 5.8-inch $1,349.00 BRL 9,299

iPhone XS Max (64 GB) 6.5-inch $1,099.00 BRL 7,999
iPhone XS Max (256 GB) 6.5-inch $1,249.00 BRL 8,799
iPhone XS Max (512 GB) 6.5-inch $1,449.00 BRL 9,999

2019

iPhone 11 (64 GB) 6.1-inch $699.00 BRL 4,999
iPhone 11 (128 GB) 6.1-inch $749.00 BRL 5,299
iPhone 11 (256 GB) 6.1-inch $849.00 BRL 5,799

iPhone 11 Pro (64 GB) 5.8-inch $999.00 BRL 6,999
iPhone 11 Pro (256 GB) 5.8-inch $1,149.00 BRL 7,799
iPhone 11 Pro (512 GB) 5.8-inch $1,349.00 BRL 8,999

iPhone 11 Pro Max (64 GB) 6.5-inch $1,099.00 BRL 7,599
iPhone 11 Pro Max (256 GB) 6.5-inch $1,249.00 BRL 8,399
iPhone 11 Pro Max (512 GB) 6.5-inch $,1449.00 BRL 9,599

[2020]

iPhone SE (64 GB) 4.7-inch $399.00 BRL 3,699
iPhone SE (128 GB) 4.7-inch $449.00 BRL 3,999
iPhone SE (256 GB) 4.7-inch $549.00 BRL 4,499

2020

iPhone 12 Mini (64 GB) 5.4-inch $729.00 BRL 6,999
iPhone 12 Mini (128 GB) 5.4-inch $779.00 BRL 7,499
iPhone 12 Mini (256 GB) 5.4-inch $879.00 BRL 8,499

iPhone 12 (64 GB) 6.1-inch $829.00 BRL 7,999
iPhone 12 (128 GB) 6.1-inch $879.00 BRL 8,499
iPhone 12 (256 GB) 6.1-inch $979.00 BRL 9,499

iPhone 12 Pro (64 GB) 6.1-inch $999.00 BRL 9,999
iPhone 12 Pro (256 GB) 6.1-inch $1,099.00 BRL 10,999
iPhone 12 Pro (512 GB) 6.1-inch $1,299.00 BRL 12,999

iPhone 12 Pro Max (64 GB) 6.7-inch $1,099.00 BRL 10,999
iPhone 12 Pro Max (256 GB) 6.7-inch $1,199.00 BRL 11,999
iPhone 12 Pro Max (512 GB) 6.7-inch $1,399.00 BRL 13,999

 

[Robbosan]

And?

 

[calstanford]

That's because your government taxes foreign imports such as iPhones absurdly. Not everyone wants to produce a phone in Brazil just to sell it locally.

 

[alecgold]

That's because your government taxes foreign imports such as iPhones absurdly. Not everyone wants to produce a phone in Brazil just to sell it locally.

That and something called exchange rates, past 5 years:

Bolsonaro hasn’t had the best of “luck”. Since he became president in 2018 the BRL became 5 times less worth against the dollar. Good for export, hell for import.

 

[The-Real-Deal82]

I think unless you live in the US, you’re going to see higher prices of iPhones in most countries. The exchange rates never seem to favour us and it’s the reason I don’t buy flagship iPhones now. I always go for the mid tier as I don’t see the point. Got to stick to your principles as Harry would say.

 

[sjperformance]

That’s why many buyers come to Miami and buy them here.

 

[M5RahuL]

If you’re ever Stateside, pick one up.. I wouldn’t pay those ridiculously exorbitant prices for *any* phone!!

 

[skaertus]

That's because your government taxes foreign imports such as iPhones absurdly. Not everyone wants to produce a phone in Brazil just to sell it locally.

Yes, taxes have always been very high here. We historically have the most expensive iPhone in the world, in U.S. dollars.

That and something called exchange rates, past 5 years:
View attachment 1537186

Bolsonaro hasn’t had the best of “luck”. Since he became president in 2018 the BRL became 5 times less worth against the dollar. Good for export, hell for import.

On top of the high taxes, we had this. In 2008/2009, the exchange rate was approximately USD 1 = BRL 1.8. Now it is USD 1 = BRL 5.6. The U.S. dollar is 3x more expensive now than it was back then. But still, the iPhone is 6x more expensive, which means that Apple nearly doubled the prices here in Brazil in U.S. dollars (i.e., discounting the exchange rate).

I think unless you live in the US, you’re going to see higher prices of iPhones in most countries. The exchange rates never seem to favour us and it’s the reason I don’t buy flagship iPhones now. I always go for the mid tier as I don’t see the point. Got to stick to your principles as Harry would say.

Yes, but Apple's pricing scheme makes the iPhone a very poor proposition here in Brazil. I have just taken a few examples of prices right now (only Brazilian reputable stores being considered; and I picked exactly the same models):

Model	Amazon.com	Cheapest Brazilian store	Brazilian price in USD
Apple iPhone XR 64 GB	$ 389.99	BRL 3,719.07	$ 693.84
Apple iPhone 11 64 GB	$ 599.97	BRL 4,399.99	$ 820.89
Apple iPhone 11 Pro 64 GB	$ 779.99	BRL 6,639.00	$ 1,238.62
Apple iPhone 11 Pro Max 64 GB	$ 954.99	BRL 9,125.99	$ 1,702.61
Apple iPhone 7 32 GB	$ 229.00	BRL 2,230.14	$ 416.07
Apple iPhone 8 Plus 64 GB	$ 341.99	BRL 4,599.00	$ 858.02
Samsung Galaxy S20 128 GB	$ 665.45	BRL 3,199.00	$ 596.83
Samsung Galaxy S20 Plus 128 GB	$715.00	BRL 3,488.00	$ 650.75
Samsung Galaxy Note 20 Ultra 256 GB	$ 1,249.99	BRL 5,399.10	$ 1,007.29
Samsung Galaxy A51 128 GB	$ 399.99	BRL 1,619.00	$ 302.05
Samsung Galaxy Z Fold 2 5G 256 GB	$ 1,789.99	BRL 12,599.62	$ 2,350.68
Motorola G9 Plus 128 GB	$ 354.65	BRL 1,888.89	$ 352.40
Motorola G8 Power 64 GB	$ 179.99	BRL 1,281.55	$ 239.09
Motorola G8 Power Lite 64 GB	$ 149.99	BRL 1,099.00	$ 205.03
Motorola Edge 5G 256 GB	$ 399.99	BRL 4,499.10	$ 839.38
Motorola One Vision 128 GB	$ 249.99	BRL 1,399.00	$ 261.00
ASUS ROG Phone II 128 GB	$ 799.99	BRL 3,779.10	$ 705.04
Xiaomi Redme Note 8 64 GB	$ 165.00	BRL 1,299.00	$ 242.35
Xiaomi Redmi Note 9 128 GB	$ 199.00	BRL 1,441.30	$ 268.90
LG K50S 32 GB	$ 149.99	BRL 949.05	$ 177.06

As you can see, there is a huge difference between iPhone prices in the U.S. and in Brazil. However, this difference is much smaller among Android smartphones (with the exception of the Motorola Edge, perhaps because it is being heavily discounted at Amazon.com, which makes it Amazon's #1 selling smartphone right now).

 

[bunnyechoes]

But are the Brazilian prices before or after tax? I've recently seen a video where somebody mentioned that all the prices Apple announces are actually before tax, so you should expect to pay a little more for the phone. I'm not in the US, so can someone verify what I've written?

 

[skaertus]

But are the Brazilian prices before or after tax? I've recently seen a video where somebody mentioned that all the prices Apple announces are actually before tax, so you should expect to pay a little more for the phone. I'm not in the US, so can someone verify what I've written?

Taxes are included in all Brazilian prices.

Brazil has a very complex tax system, which includes multiple taxes owed to Federal and State governments, and which sometimes are calculated over the final price with all the taxes (yes, ICMS, a state tax, is calculated over itself).

 

[maerz001]

Taxes are included in all Brazilian prices.

Brazil has a very complex tax system, which includes multiple taxes owed to Federal and State governments, and which sometimes are calculated over the final price with all the taxes (yes, ICMS, a state tax, is calculated over itself).

But in the US taxes are not included in the price

 

[RRC]

It's not Apple that is making these phones more expensive to buy, its your government. Why should Apple reduce the price of the device just to bring it in-line with other countries when it's the higher rate of tax that the government put onto the device combined with the fact that Brazilian exchange rate is rubbish, that is the issue.

For Apple to sell the devices they may encounter higher costs due to where they are shipped from/import duty and things like that. They won't simply ramp up the price just because... if they were going to do that, they'd do it in countries where people would pay it. Makes no sense to do that in countries with little money.

US listed prices do not include tax, add that in and then compare.

 

[skaertus]

It's not Apple that is making these phones more expensive to buy, its your government. Why should Apple reduce the price of the device just to bring it in-line with other countries when it's the higher rate of tax that the government put onto the device combined with the fact that Brazilian exchange rate is rubbish, that is the issue.

For Apple to sell the devices they may encounter higher costs due to where they are shipped from/import duty and things like that. They won't simply ramp up the price just because... if they were going to do that, they'd do it in countries where people would pay it. Makes no sense to do that in countries with little money.

US listed prices do not include tax, add that in and then compare.

Yes, our government charges very high taxes, which make products much more expensive than in the U.S. (and in the rest of the world).

But still, it does not explain why the iPhone is much more expensive than its competitors here in Brazil. Taxes should affect all phones equally; it is not Apple that has to pay taxes. And Samsung, Motorola, ASUS, Xiaomi, and all other manufacturers of Android phones manage to price their comparable devices much more competitively than Apple. I am not sure if the table in my previous post is readable, but a 64 GB iPhone 8 Plus is more expensive than a 128 GB Galaxy S20 Plus, a 128 GB ROG Phone II, or a 256 GB Moto Edge 5G. And a 64 GB iPhone 11 Pro Max is more than double (and sometimes almost triple) the price of any of these Android phones.

 

[aakshey]

The truth is almost all these companies (apart from Apple) are subsidising their phones. They are either losing money or at best breaking even. Whereas Apple has decided that their gross markups should be fairly similar in all countries across the world.

Your prices are a bit higher than Indian prices. Indian prices are very high too. Yours are higher still.

Besides, many companies might be manufacturing locally. Whereas Apple doesn’t give two hoots about a tiny market.

 

[alecgold]

Yes, our government charges very high taxes, which make products much more expensive than in the U.S. (and in the rest of the world).

But still, it does not explain why the iPhone is much more expensive than its competitors here in Brazil. Taxes should affect all phones equally; it is not Apple that has to pay taxes. And Samsung, Motorola, ASUS, Xiaomi, and all other manufacturers of Android phones manage to price their comparable devices much more competitively than Apple. I am not sure if the table in my previous post is readable, but a 64 GB iPhone 8 Plus is more expensive than a 128 GB Galaxy S20 Plus, a 128 GB ROG Phone II, or a 256 GB Moto Edge 5G. And a 64 GB iPhone 11 Pro Max is more than double (and sometimes almost triple) the price of any of these Android phones.

But Motorola has significant differences in their phone line-up: the G9 is even lower in BRL, but the 3dge 5G has doubled in price. There are strange inconsistencies in your list.
Not to say you have made errors, it’s just that it seems there are more factors in the BRL prices.

 

[Pepperfection]

Still way cheape than in the Philippines. lol.Example, Pro Max 512GB is $1,800. Will get one though so I can take better shots for Rock in Rio.

 

[alecgold]

12PM 512 with AC+ is € 1838 here.

 

[skaertus]

But Motorola has significant differences in their phone line-up: the G9 is even lower in BRL, but the 3dge 5G has doubled in price. There are strange inconsistencies in your list.
Not to say you have made errors, it’s just that it seems there are more factors in the BRL prices.

I suppose the reason for this is that the Motorola Edge is on sale at Amazon.com. It is listed as $699.99, but currently being sold for $399.99, which may explain this inconsistency.

 

[JPack]

More like the sad state of Brazil.

The country charges a 60% duty on imported products. Similar to India, this type of extreme protectionism can backfire.

 

[FreeWoRLD83]

We historically have the most expensive iPhone in the world, in U.S. dollars.

I believe Turkey has the crown for that.

Current iPhone 11 price is 950 USD at the moment (at Apple Store). The tax system for any phone over 1500 tl (around 180 USD) is the following;

1500 TL - Price of the phone
%50 tax
%18 another tax of "1500 tl + %50 tax"
%10 another tax of "1500 tl + %50 tax + %10"
%1 another tax of "1500 tl + %50 tax + %10" + %1"

Total becomes 2950 TL
(Notice how they you for the price that's already taxed..)


This does not make Brazil's pricing and taxation any better of course. I still don't know how people even pay that much.

 

[skaertus]

More like the sad state of Brazil.

The country charges a 60% duty on imported products. Similar to India, this type of extreme protectionism can backfire.

Well, that depends. Imports tax is just one of the taxes over foreign products. The percentage may vary, but electronic products are heavily taxed.

 

[aakshey]

Well, that depends. Imports tax is just one of the taxes over foreign products. The percentage may vary, but electronic products are heavily taxed.

It doesn't depend. All this is socialist non sense and the cause of your frustration. The govt needs to be sacked, not backed.

 

[alecgold]

It doesn't depend. All this is socialist non sense and the cause of your frustration. The govt needs to be sacked, not backed.

BS. In the states you pay taxes as well. And not that much less when compared to a lot of EU countries.
mand if you want to talk about expensive, let’s have a chat about US health care. And not the insurance (or lack thereof) and not about availability in small rural towns and areas, but about the cost of a simple treatment. Or the cost of any treatment. You might easily go bankrupt on it.

 

[aakshey]

BS. In the states you pay taxes as well. And not that much less when compared to a lot of EU countries.
mand if you want to talk about expensive, let’s have a chat about US health care. And not the insurance (or lack thereof) and not about availability in small rural towns and areas, but about the cost of a simple treatment. Or the cost of any treatment. You might easily go bankrupt on it.

If you agree with EU/Brazil, then don’t crib about high prices of Apple products.

 

[alecgold]

If you agree with EU/Brazil, then don’t crib about high prices of Apple products.

I didn’t crib against the high prices of Apple, (I just bought a 512 12PM in pacific blue, I prefer to pay for my products with cash, not with my data/privacy). I didn't even say much against taxes, I only wondered how they got that high in Brazil and why there where inconsistencies in the price differences.

You on the other hand used irrelevant claptrap arguments much like this one: that capitalist republican government in the US spend such incredible amounts of money they didn't have (but did not lower other government expenditures) and refused to increase taxation. This is resulting in the biggest deficit in it's entire history with no way to keep afloat than to keep interest at an all time low. This political refusal to do the job they are elected to do, (govern all citizens) gives all kinds of corrupt and evil stimuli to overspend, to rake up more deficits and debts, and to sink deeper into the hellhole of debt.
Japan's situation is the future of other countries such as the US: depts at 250%+ of the GDP, huge amounts of interest to pay and no future for the younger generations, poverty for the elderly and ever increasing government stimulation.