Most Apple fans are aware that the iPhone X is the most expensive model to date with a starting price tag at about $1,000 in the U.S. When you begin looking at how much the phone costs in other markets, you start to realize just how much of a status symbol that Apple’s products have become. It becomes even clearer when you consider the true iPhone X cost, which takes into account factors such as local taxes and weighs it against each country’s gross domestic product.
Wide variances in iPhone X price tags
Determining the true iPhone X cost in other markets requires more than just converting that $1,000 U.S. price tag into other currencies, and Apple isn’t the only gadget maker with varying prices in different geographies. To get an idea for just what consumers around the globe are willing to pay for an iPhone X, the team at iDropNews compiled a list of the true iPhone X cost in each country where it’s sold.
They discovered that the phone’s price tag can vary by up to 45% in U.S. dollars, but then when you add local relative costs in, the variance is even greater. For example, consumers in India will have to pay 22% of their annual income, on average, to buy an iPhone X. When that’s transferred back to the U.S., it would be like Americans forking over $12,600 for it.
Fastenal: Why Being Cheap Works As a Business Strategy
Fastenal is one of the best-performing stocks of the past decade. Since the beginning of January 2010, shares in the industrial distribution company have yielded an average annual return of 16%, turning every $10,000 invested into $44,264. Q2 2020 hedge fund letters, conferences and more In many ways, Fastenal is not the sort of business Read More
Here’s a look at the numbers compiled by iDropNews to show the differences just in the price for the handset:
Every country has different taxes and laws, each of which factor into the true iPhone X cost for their markets, but in general, the price is significantly higher abroad than it is in Apple’s home country. The iDropNews team pointed out that taxes, tariffs and even laws can raise the price of doing business in each country. India, for one, now has a 15% import tax on handsets, recently increased from 10%.
Other major factors included in the price of doing business in various markets include rent prices and property values and sales, marketing, and maintenance expenses.
How local economies play into the true iPhone X cost
Another major factor in determining the true iPhone X cost in various markets is the local economies in each of those markets. For example, when including economic disparities in Russia, consumers there would pay almost 3.5 times what an American would pay for an iPhone X. In Luxembourg, the price tag on the iPhone X is roughly $1,320 or €1,121, but that amounts to only about 1% of the average income of consumers there. It’s a similar story in the UAE and Singapore, and in the U.S., the $1,000 price tag is less than 2% of the average consumer’s income.
Here’s a look at the true iPhone X cost calculated as a percentage of per capital gross domestic product: