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Why is the iPhone in Brazil the most expensive in the world?

Brazil usually has one of the most expensive iPhones, if not the most expensive in the world

Photo: Canaltech

The launch event of the new models of the iPhone 14Yes Apple, is scheduled for this Wednesday (7), in California. The company must announce the prices of mobile phone in the US, which will trigger price expectations in Brazil. We usually have one of the most expensive iPhones, if not the most expensive in the world in the global market.

The reasons for the high price of Apple phones here are old: high fees and the fluctuation of the exchange dollar they are among the big bad guys, pushing the price far beyond the Brazilian reality.

New mobiles must bring screens 6.1 inches (15.5 cm) to 6.7 inches (17 cm). Again, the bet is that the iPhone 14 will start selling at very high prices: the traditional one, in the US, for US $ 799 (i.e. about R $ 4,400), the Plus for US $ 899 (~ R $ 4,900). ), the Pro for $ 1,099 (~ R $ 6,000) and the Pro Max for $ 1,199 (~ R $ 6,600). These values, already high, may even exceed expectations.

In March the Hi surean insurance quote platform for different types of products, presented a survey with the price of iPhone 13 in 37 countries. The model in Brazil had the most expensive price, costing an average of R $ 8,663. At the other end, the cheapest was from Russia, at R $ 3,816.

Taxes like ICMS, IPI, and COFINS raise the price of iPhones and other cell phones in Brazil

Taxes like ICMS, IPI, and COFINS raise the price of iPhones and other cell phones in Brazil

Photo: Apple / Disclosure

Taxes too high on iPhone

The main reason for explaining the high prices of iPhone in Brazil there is already a consensus: taxes are many, and very high, in the country. According to Anderson Costa de Souza, professor of administration and human resources at Fundação Getulio Vargas (FGV), in general, mobile phones are subject to two taxes and two contributions.

The taxes are the tax on industrialized products (federal IPI) and the tax on the movement of goods and the provision of services (state ICMS). The contributions are those of the PIS (Social Integration Program) and of the COFINS (Contribution for the Financing of Social Security).

In the case of imported mobiles, like most iPhonea third federal tax is also levied: the Import Tax – II, which will increase the calculation basis for all the other aforementioned taxes.

A survey conducted last year by the couponValido.com.br discount portal also showed that Brazil is the country where iPhones, iPad, AirPods And MacBook they are the most expensive in the world. About 40% of the price of an iPhone, according to the survey, only goes to pay the tax burden. However, according to a 2021 Panorama Mobile Time / Opinion Box survey, Apple holds a loyal 13% share of market sales.

Comparing with other companies like SAMSUNG (43%) e Motorola (22%), who owns a larger share of Apple in Brazil, Souza says that “certainly one of the factors that contributes to ensuring that the number of holdings is not the highest is the price of the product charged.”

Although the iPhone has still suffered a reduction in sales volumes due to the price, the values ​​are so high that the company’s profit remains positive. For them the profit margin was very good, because even if they sell fewer devices, each of them gives a very high income.

The exchange rate and the high dollar increase the value of Apple’s mobile

There is yet another contributing factor negatively, which is the exchange rate, especially as the dollar rises. Currently, one dollar is equivalent to R $ 5.15. That is why the famous phrase “whoever converts does not have fun”. In fact, the price of i phone it goes up a lot with such a high dollar compared to the real thing, making it a coveted purchase in US travel.

iPhone 13 is already assembled at a Foxconn plant in Jundiaí (SP)

iPhone 13 is already assembled at a Foxconn plant in Jundiaí (SP)

Photo: reproduction

Even assembled in Brazil, the price of the iPhone remains high

They already exist iPhone assembled on the national territory, such as the iPhone 13, for example, in a Foxconn plant in Jundiaí (SP). Even so, Apple does not raise: there has been no reduction in the prices of the devices. In the brand’s store, the mobile phone continues with the same values ​​announced in 2021: between R $ 7,599 and R $ 10,599.

This is because the company is also interested in placing itself on the market as a brand for “premium” products. There is therefore no interest in democratizing access so much. If Apple smartphones are consumers’ dreams, they can’t be that easy to acquire, right?

Souza explains that, in theory, taxes are the same for all companies in the industry, but there are other reasons that can affect values, such as so-called tax benefits.

“For example, one of the most talked about tax incentives in Brazil is relative Free Zone of Manaus, which can lead to significant reductions in the tax burden. However, it depends on a number of requirements to be used and must, as a rule, have the approval of the Superintendency of the Manaus Free Trade Zone. [Suframa]”Explains the teacher.

In 2021, the increase in mobile phones used was 29%, while in the world the increase was 15%

In 2021, the increase in mobile phones used was 29%, while in the world the increase was 15%

Photo: Canaltech

High prices push the used car market

One way out for many iPhone lovers who don’t want to pay such high prices is the second-hand market in Brazil. The Counterpoint Research consultancy showed that in Latin America, in 2021, the increase in cell phones used was 29%, while in the world the increase was 15%. In this market, Apple is leading, followed by Samsung.

On the Trocafone website, a 512GB iPhone 13 Pro model cost R $ 10,649 on September 5, 2022. A very high value, but also cheaper than Apple’s official website, where it costs R $ 12,499. On the OLX website, there are more affordable values, such as an iPhone 13 for R $ 4,800 and a 13 Pro Max 128GB for R $ 6,099. However, when transactions are between the cell phone holder and the buyer, there is a risk of fraud.

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