As noted by O Globo, Apple today made significant cuts to its pricing for the iPhone 4 and 4S in Brazil, lowering the price of the 8 GB iPhone 4 from R$ 1499 (US$741) to R$ 1099 (US$544) while dropping the 16 GB iPhone 4S from R$ 1999 (US$989) to R$ 1699 (US$840).
Apple's standard sales arrangement in Brazil includes financing of 12 monthly payments, but customers willing to pay in full with cash can order by phone for a 10% discount, bringing pricing down even further to R$ 989 (US$489) and R$ 1529 (US$756). It appears to be unclear if there have been any changes to iPhone 5 pricing, as Apple does not sell the device through its online store in Brazil.
In the United States, Apple sells the 8 GB iPhone 4 unlocked and unsubsidized for $450 before taxes, making Brazilian pricing fairly competitive with Apple's U.S. pricing. The 16 GB iPhone 4S is priced at $549 unlocked in the U.S., meaning that Brazilians are still paying a relatively significant premium for that device even with the 15% price cut.
The report does not note the reason for the significant price cut, but it seems likely that Apple's partnership with Foxconn to bring iPhone and iPad production to Brazil in order to avoid extremely high import taxes may now be yielding benefits. Apple has, however, not yet reduced pricing on the iPad in Brazil.
Late last year, Apple began hiring for its first retail stores in Brazil, seeking to raise its profile in the world's fifth most populous country.
Top Rated Comments
Its called a 2 year contract.
Its equivalent of selling you soul.
The high price is almost entirely due to Brazilian tariffs / taxes (Brazilian electronics prices are some of the highest in the world). Even if the margins were 40%, they are now down to 15% (prices slashed by 25%). Apple always slashes the prices to sell off inventory before a new product comes out. Brazil, India, and China will get a new low cost phone.
The Brazilian people really get screwed when buying electronics.
There are no free phones. Just try it. Go to the Apple store and ask for a free phone. They do not give it to you until after you sign a contract saying you will pay something like $2,000. It is pretty clear that loan payments are bundled with the air time.
In Canada, you can keep your soul for $150 for a (new) iPhone 4!