Apple Will Sell The iPhone In Brazil For Nearly $1,200

I am linking to Business Insider. Can't really believe it.

To put that in perspective, consider that the Brazilian average wage is about 2,000 reais per month, according to Trading Economics. On that measure, an iPhone costs the equivalent of more than a month's wages. Brazil's income stats fluctuate more widely and frequently than those of the U.S. The World Bank recently put average income per capita (a different measure of wealth) at just over 9,000 reais. The U.S. equivalent is about $47,000.

This seems accurate. The prices we usually pay for electronic devices is ridiculous. When it comes to the iPhone and other Smartphones, our carrier subsidies are nowhere as strong as those in the US. Those of us privileged enough to buy an iPhone regardless of its abusive pricing here, usually have the option to buy them abroad for a lower price.

So why would Apple charge more than the U.S. for a phone in a country that is poorer?

One part of this is that Apple is not actually trying to be the most popular phone company. It is trying to be the richest phone company: Apple takes 87% of all mobile phone profits in the entire world, according to analyst Tavis McCourt at Raymond James.

Now, this, has nothing to do with the iPhone pricing in Brazil in particular. This is how Apple prices their products regardless of the market they are in: at a premium level, because they are premium products. The particularly high prices in Brazil are much more related to how abusive our tax policy is. This is not an iPhone only situation.