Apple will launch its new iPhone models in Israel, iPhone 6 and iPhone 6 Plus, next week. The iPhone 6 price in Israel, NIS 3,800, will be higher than the NIS 3,600 price for the iPhone 5s when it was launched, and more than in most countries. The importers profit from the high price in two ways: first of all because Israeli consumers will buy the phone without blinking an eye, and secondly because it also affects the price of the previous model. While the iPhone 5s is sold at an official price of NIS 3,400, the higher initial price for the iPhone 6 will enable the chains to avoid reducing the iPhone 5s price by anything more than a minimal amount, while maintaining a price gap between the new and previous models that is perceived as reasonable. While the launch price in the US for the iPhone models is fixed, in Israel it varies. The iPhone 4s set the record of NIS 4,300 when it was launched in December 2011, while the iPhone 5, launched in December 2012, was sold for NIS 3,800, NIS 500 less.
Another iPhone importer, C-Data, entered the market last year, in addition to the large mobile carriers and importer iDigital. The entry of the new importer, however, did not change the price of the devices.
They pay NIS 1,100 less in the US
The iPhone 6 costs NIS 2,700 in the US, and the price gap with Israel for the 16 gigabyte version is NIS 1,100. The gap for the iPhone 6 Plus is even greater: it sells for NIS 3,100 in the US and NIS 1,300 more than that in Israel.
The difference in price between the two new models is also greater in Israel: NIS 600, compared with NIS 400 in the US.
The reason for the difference
The importers must pay 35% tax to the state, which pushes the price up significantly. The country where the iPhones are cheapest is Japan, where the iPhone 6 sells for NIS 2,360 and the iPhone 6 Plus for NIS 2,780. Perhaps the fact that people in the US also have someone to envy is of some comfort.
One country where iPhone prices are similar to those in Israel is Turkey, where people pay NIS 3,800 for the iPhone 6, the same price as in Israel, and NIS 4,500 for the iPhone 6 Plus, NIS 100 more than in Israel.
Some chains are already exploiting the public's lack of information and patience by selling the iPhone 6 at NIS 4,500, and even more.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014