Apple Inc. (NASDAQ:AAPL)’s iPhone series is truly a global phenomenon, and the most recent release in the smartphone range, the iPhone 6, was no exception to this rule. It is not only in the United States where consumers are willing to queue round the block in order to get their hands on the world’s most successful smartphone, and in other countries consumers will go to even greater lengths.
iPhone 6 Pricing – A global success story
While Samsung has been very successful in East Asia, and particularly in its native Korea, Apple has nonetheless established itself as a premium brand in developing economies. One only needs to read reports of the incredible lengths people in China will go to in order to get their hands on a pre-release iPhone 6 to understand that this device is every bit as successful in the far East as it is in Western markets.
The chilling tale of a teenager in Beijing who sold a kidney in order to purchase an iPhone and iPad would succinctly underline the popularity of Apple in the Far East.
But the iPhone is becoming a runaway success all over the world, as Apple definitively establishes it as the world’s leading smartphone. But one aspect of the iPhone series which perhaps isn’t considered too often is how the price varies from country to country. While one might expect to see a fairly constant price point for such a mass market device as the Apple iPhone, regional differences and issues such as trade tariffs and local economies can have a massive influence over the price that the iPhone 6 retails at in various parts of the world.
US consumer benefits
And the average consumer in the United States would perhaps be surprised by the level of variation. Because in some countries where the iPhone 6 goes on sale, consumers will pay considerably more to purchase the iconic Apple device than would be expected in the United States. Certainly, there would be a few Turkish consumers who would be rather sick to see the level that the iPhone 6 retails at in the world’s largest economy.
That’s because the price of the iPhone 6 is higher in Turkey than anywhere else on the planet. The unique nation, which is partly located in Europe and partly in Asia, is thus not part of the European union, and consequently has its own currency – the Turkish lira.
In Turkey, the iPhone 6 retails at around 2,350 Turkish lira. If this sounds like an astronomical price, it is worth bearing in mind that the Turkish currency doesn’t necessarily convert to the dollar particularly favourably. Nonetheless, the price of the iPhone 6 smartphone in Turkey is still around the equivalent of $1,050, while the larger iPhone 6 Plus will set you back around $1,200 in Turkey if you were to purchase it with American money.
The unique importation situation in Turkey ensures that the iPhone 6 is considerably more expensive than in most mainland European nations. But the iPhone 6 will still retail at significantly higher prices in Europe than is routine for the United States marketplace. The iPhone 6 in fact retails in the United States at a cheaper price point than anywhere in Europe, with only Japan offering the smartphone at a lower price.
Eurozone price hike
There are 17 European nations that sell the iPhone 6 at a higher price than the United States, with Switzerland being the cheapest retailer of the Apple smartphone. This is ironic given the fact that the standard of living is significantly higher in Switzerland than any other nation, with the average monthly wage in the independent direct democracy estimated to be around $5,600. Yet the iPhone 6 retails for around 650 euros ($815) in Switzerland; a lower price points than any other European nation.
Consumers hoping to purchase an iPhone 6 in Italy can expect to pay the highest price in the world outside of Turkey. This may be the style capital of the world, but it’s not the ideal nation to purchase consumer technology. Typically, the more affordable iPhone 6 model will retail for just over €750 ($940) in Italy, while the iPhone 6 Plus retails for the equivalent of just under $1,100.
This is slightly more expensive than other European Union nations, but nevertheless throughout mainland Europe consumers pay higher prices for both of the iPhone 6 models than in the United States. A standard price point in countries such as Germany, the Netherlands, France, Spain Belgium and Ireland is €720 ($900) for the smaller iPhone 6, and €825 ($1,025) for the tablet-sized iPhone 6 Plus.
The United Kingdom, which is not part of the European single currency, is able to offer British consumers a slightly cheaper price for the iPhone 6. UK buyers of the smartphone model can expect to pay around £550 ($875), while the more expensive version of the iPhone 6 is also very slightly cheaper in the British Isles than on the European continent.
As mentioned previously, the cheapest worldwide price for the iPhone 6 is in Japan, where consumers can pick it up for the equivalent of around $15 less than in the United States. But Apple fans in other Eastern nations such as Hong Kong, Singapore and the United Arab Emirates are also well served by pricing, being able to purchase an iPhone 6 for significantly less than in Europe, and only marginally more than the standard price points in United States.
What this all adds up to is that US consumers continue to be well served by Apple, and just consumer electronics pricing in general.