Keen Apple consumers in the United States will already be familiar with the iPhone X price. But the revolutionary handset is not necessarily available at the same price point all over the world. With this in mind, here ValueWalk examines the iPhone X price in China, India and the UK, as well as looking at some related issues.
The importance of China to Apple is already well understood. The general consensus of analysts is that the world’s most populous nation is critical to the future growth of Apple products, particularly the hugely popular iPhone range.
So there is no doubt that the iPhone X prize in China is of vital importance to the immediate future of the Apple corporation. But if American consumers are expecting the iPhone X to sell at the same price level as the United States in East Asia…guess again.
The tenth anniversary iPhone X will retail at 8,388 yuan ($1,285) for the entry-level unit, with the premium version of the smartphone attracting an eye-watering price tag of 9,688 yuan ($1,484). Apple smartphones are very much aimed at the middle-class in China, and this will certainly apply to the new iPhone X.
Whether over time the iPhone X price will reduce and, along with the future Apple smartphones, remains to be seen. But although there are cultural and economic factors behind the very high pricing for Apple products in China, this latest device release does seem to be rather unjustified.
It is the inordinately high pricing of the market leading Apple smartphones that has enabled more affordable manufacturers to establish themselves in locations such as China. Xiaomxi recently released the Mi Mix 2, which is the most expensive devices that it has ever created. Yet it still costs only 4,699 yuan.
India may not be as important to Apple as China, but such developing and emerging markets are still key drivers for growth in Apple sales. And thus it is certainly interesting to assess the iPhone X price in the massive Asian subcontinental nation.
The complexity of distributing the iPhone X within the massive Indian nation has been cited by Apple in explaining the cost of the smartphone within India. But, again, consumers in India will find themselves paying massively inflated prices in order to get their hands on an iPhone X unit.
Thus, the iPhone X will cost Rs 89,000 ($1,400) for the 64GB version, with the premium version of the iPhone X costing Rs 102,000 ($1,600). This certainly puts the cost of the smartphone in the United States into perspective, indicating that Indian consumers will have to pay a quite significant amount of money in order to acquire the next generation iPhone X.
Indeed, it has been noted that it is actually cheaper for consumers in India to fly to Hong Kong, purchase the iPhone X, and then fly home, as opposed to actually purchasing it from a retailer in India.
How Apple and other technology manufacturers can continue to justify this is a point for debate, but the iPhone X is still expected to sell extremely well among the growing middle-class in India.
Even in the developed world, the iPhone X price can be rather inflated in comparison to the United States. And there is no better example of this than in the UK, where consumers must pay a premium in order to buy the next generation Apple handset.
The UK is sometimes referred to in the British press as ‘rip-off Britain’, a statement intended to reflect the notoriously high prices for consumer goods in the UK. Certainly consumer electronics are significantly more expensive in Britain than the United States, and the iPhone X price underlines this fact quite succinctly.
Essentially, all iPhone X prices translate directly from dollars to sterling. Therefore, the most affordable version of the iPhone X costs £999 pounds in Britain, which equates to around $1,250. Clearly this represents a mark-up of approximately 25 percent, which is extremely difficult to justify even in a climate in which the pound has taken a bit of a kicking.
Apple has defended the pricing structure in the UK by pointing out that its recommended retail price includes VAT, whereas a sales tax will be added in the United States. Clearly the exchange rate has also made a difference, but many have criticized the iPhone X price in the UK, suggesting that it is no more than a sales tactic from Apple.
Nonetheless, regardless of this assertion, it is almost an absolute certainty that the smartphone will completely sell out immediately, thus entirely vindicating the Apple price strategy. Clearly the sheer size of the United States market means that consumers in the nation will always benefit from the best products for technology devices.
Unique US market
Matt King, Category Director, Technology and Media Research at Mintel, told the British newspaper The Daily Mail that the unique nature of the US market motivates Apple to offer particularly attractive prices.
“Part of the reason is that the US market is so much bigger than the UK. This means that in the US, brands like Apple can benefit from greater economies of scale on marketing and distribution costs. But the devaluation of the pound in the wake of the Brexit vote is also a major factor. Apple is just one of several major technology companies to have increased its prices in the UK since the vote in June last year, citing the weakness of the pound as the reason,” King commented.
Although the iPhone X price may be challenging for consumers in such locations as China, India and the UK, it is still expected to sell extremely well. Analysts believe that Apple will increase sales of the iPhone range by around 10 percent over the next 12 months, and that this will be reflected in a surge in its share price.
Certainly the omens are good for a smartphone that introduced a wraparound display, augmented reality technology and wireless charging.