Apple's first retail store in Brazil opened in Rio de Janeiro this weekend, with approximately 1,700 customers waiting in line for the grand opening (via The Globe]. Customers started queueing up on Thursday night for the Saturday morning debut, with groups waiting both inside and outside the Village Mall.

apple_store_rio

Photo from The Globe

The opening of the Rio de Janeiro store was announced last week on the company's website and is Apple's first store in Latin America. The store has a fairly unique single floor, pavilion-style design with a curved glass exterior. Unlike most other Apple retail stores, the Rio de Janeiro location features a split-concept layout where one half of the store is dedicated to product demonstrations while the other half is focused on accessory sales and services.


Speaking to Brazilian news site The Globe, Apple CFO Peter Oppenheimer confirmed that Brazil was an increasingly important market for Apple. The Rio de Janeiro store is part of a larger plan to tap into the Latin American market, which traditionally has been a weak market for Apple due to the high import taxes levied on electronic devices.

Apple will be selling its full product lineup in the Rio store, including the iPhone 5S starting at the equivalent of $1,174, with high taxes making it the most expensive Apple retail store for iPhone purchases (via Bloomberg).

Related Forum: iPhone

Top Rated Comments

Taz Mangus Avatar
147 months ago
Waiting to see the article from the NYT putting a negative spin on this. Maybe this time they will claim only 1 person showed up.
Score: 2 Votes (Like | Disagree)
LiveinRiot Avatar
147 months ago
I was actually there and the prices are ridiculous, part of it is taxes and another part is the fault of Apple itself. It is sad to have to pay so expensive apple products.
Score: 1 Votes (Like | Disagree)
WallToWallMacs Avatar
147 months ago
1700 people wait in line for an Apple retail store to open.


* Apple is not giving any special product discounts today at that store.
* Apple is not giving away concert tickets like Microsoft did for their store openings.
* Apple is not paying those people to be there


What other company generates this kind of excitement for the opening of a retail store in the age of online shopping?

I can't think of one. Yet, Apple's stock price does not reflect nearly that level of goodwill value from the brand. Consumers love Apple, but with the current P/E ratio it is apparent that Wall Street does not feel the same way. Something has to give with the price of AAPL -- it has to eventually correct to north of $850 per share.

The stock is priced like Apple's is Justin Bieber and its customers are like Bieber's fans. It is as if Wall Street thinks 100% of these customers with over 90% customer satisfaction ratings are just going to outgrow Apple and find a new favorite teen idol despite the incredible customer satisfaction ratings with Apple products and the willingness of people to spend top dollar to own the best.

If Apple had Google's P/E ratio then AAPL would be priced at over $1300 per share. And that is not even looking at the "Ex-Cash" P/E ratio which would send it north of $1600 per share.

Markets aren't rational which is why the 'pure free market' simply doesn't work - why there are controls such as halting the the trade when there is a rapid drop of a stock etc. End of the day Apple is a maturing company and the people wanting a quick buck off the back of unsustainable high growth rates are going to move on just as what happened with Microsoft (Steve Balmer doubled the revenue of Microsoft yet apparently he has been a failure - ok).

Regarding the price of Apple products - Brazil is apparently addressing the issue of tariffs but you'll find in many cases the tariffs are the only effective way for a developing country to raise government revenue given that the institutions required for regular and consistent taxation just aren't there yet (I'd hazard to guess that less than 30% of the population pays income tax) hence their reliance on being able to collect tax at the boarders on imported goods or taxing businesses instead. Long term Brazil will eventually have to get its act sorted out and address the structural institutional problems or otherwise it'll end up losing the faith of investors who need a stable and secure basis on which they'll invest their money.
Score: 1 Votes (Like | Disagree)
guzhogi Avatar
147 months ago
Congrats to Brazil. The prices seem high compared to the US, though. Glad to see there was a big turn out to the opening.

I was at Oak Brook mall in Illinois this weekend and the Apple Store there moved to a much bigger place. I'd say easily 3x the size of the original store, and it was still crowded.

Anyone else wonder if Microsoft will soon open its own store near the store in Rio? The one in Oak Brook is pretty cool, but empty. Plus, the people working at the M$ version of the Genius Bar were kinda of jerks, but that's a different story entirely.
Score: 1 Votes (Like | Disagree)
csaguiar Avatar
147 months ago
Important question when considering the cost of an iPhone: how much do their plans cost? Is it still the most expensive place to own an iPhone when you factor that in?

An iPhone 5S 16GB costs $812 considering a 400min 4G/LTE plan (with 6GB of usage per month). This plan costs $137 a month.

The price of $1174 given in the article is without a contract.

And.. Yes.. It's a rip off!
Score: 1 Votes (Like | Disagree)
WaxedJacket Avatar
147 months ago
I think by law if more than 10 Brazilians are congregating, it's required a Brazilian flag must be present.
Score: 1 Votes (Like | Disagree)

Popular Stories

iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Received a New Perk This Year

Sunday June 1, 2025 9:26 am PDT by
If you pay for iCloud storage on your iPhone, Apple introduced an additional perk for you this year, at no additional cost. The perk is the ability to create invitations in the Apple Invites app for the iPhone, which was released in the App Store in February. In the Apple Invites app, iCloud+ subscribers can create invitations for any occasion, such as birthday parties, graduations, baby...
WWDC 2025 Sleek Peek

Apple Shares New 'Sleek Peek' Teaser Ahead of WWDC 2025 Next Week

Monday June 2, 2025 8:22 am PDT by
WWDC 2025 is just one week away, with Apple's opening keynote scheduled to begin on Monday, June 9 at 10 a.m. Pacific Time. Ahead of the annual developer conference, Apple updated its WWDC page today with a new "Sleek peek" tagline, which replaces the original "On the horizon" tagline that it used over the past few weeks. The graphic for WWDC 2025 has also been updated. It is now a...
iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 12 New Features

Tuesday May 27, 2025 9:10 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of May 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X ...
macOS Tahoe Render

macOS Tahoe Name Leaked Ahead of Apple's WWDC Event Next Week

Sunday June 1, 2025 7:08 am PDT by
The alleged name of macOS 26 (yes) has leaked. In his Power On newsletter today, Bloomberg's Mark Gurman said that macOS 26 will be named macOS Tahoe, after California's scenic Lake Tahoe. Apple previously named its Mac operating systems after big cats like Cheetah, Tiger, Leopard, and Lion. Starting with OS X Mavericks in 2013, however, Apple switched to California-themed names like...
28 years later iphone 1

Filmmakers Used 20 iPhones at Once to Shoot '28 Years Later'

Friday May 30, 2025 7:27 am PDT by
Sony today provided a closer look at the iPhone rigs used to shoot the upcoming post-apocalyptic British horror movie "28 Years Later" (via IGN). With a budget of $75 million, Danny Boyle's 28 Years Later will become the first major blockbuster movie to be shot on iPhone. 28 Years Later is the sequel to "28 Days Later" (2002) and "28 Weeks Later" (2007), which depict the aftermath of a...
iOS 18

What to Expect From iOS 18.6 as One of the Final Updates Before iOS 26

Monday June 2, 2025 12:33 pm PDT by
It has been three weeks as of today since Apple released iOS 18.5, and we are still waiting for the first iOS 18.6 beta to follow. Below, we outline everything we know about iOS 18.6 so far. Timing Apple's software engineers have been internally testing iOS 18.6 since late March, according to the MacRumors visitors logs. The first betas of iOS 13.6 through iOS 16.6 were all released...