iPhones Are More Expensive in China
Although the iPhones 5S and 5C are sold at a cheap price in the United States, they are sold at a higher price in China. Furthermore, iPhones are actually produced and made in China. So why is it that prices are higher in China, where they are domestically produced, than internationally in the U.S.? It is mainly because China’s iPhones have a 17% sales tax, which is crazy. However, the iPhones that are exported are tax-free. The price of the iPhone 5C was valued at $733, while the iPhone 5S was valued at $864, which was more than a third higher than the $650 cost of a 5S in the United States. The higher-priced iPhones lowered consumer consumption and convinced consumers to shift towards cheaper Android products. Apple needs to get their act together and negotiate with China’s largest cellphone carrier, China Mobile, in order to have a stable or increasing consumer base. Hopefully, they’ll realize that’s what’s best for business.