First Apple Store opens in Brazil, get your iPhone now for only... $1,174!

First Apple Store opens in Brazil, get your iPhone now for only... ,174!

Brazil's first Apple Store, announced earlier this month, opened this weekend in Rio de Janeiro. The opening was attended by 1,700 people in a suburban mall. Brazil is an important expanding market for Apple, though the company faces challenges due to high tariffs on imported products. The price of the iPhone in Brazil, for instance, is nearly double the unsubsidized price that customers in the U.S. pay, according to the LA Times:

"Apple’s 16-gigabyte, contract-free iPhone 5s will sell for 2,799 reais ($1,174) in Brazil. That compares with $649 in the U.S. and 5,288 renminbi ($872) in China. The price of the iPhone 5s in Brazil, offered by authorized resellers, has jumped 17% since September on Apple’s website."

Are you happy that Apple is expanding into Brazil, and where should they go next? Let us know in the comments below.

Source: The Los Angeles Times, Tim Cook on Twitter

Joseph Keller

Joseph Keller is a news reporter for iMore. He's also chilling out and having a sandwich.

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First Apple Store opens in Brazil, get your iPhone now for only... $1,174!

29 Comments

This is what happens when the government regulates the economy in a country. It seems to be so hard for foreign companies to do business in Brazil.

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Well, the CIA devoted more than half a century to destabilize these countries and make sure that they can't capitalize on their own natural resources... Complaining now that they need some protectionism to get anywhere is kind of ironic.

It is not simply a matter of a government-regulated economy, Metro. European countries regulate their economies just as well. Their prices are not as high as ours, nor is it so difficult for companies to do business in those countries. Brazilian problems run much deeper than that. Believe me, I live with them every day.

Here in Mexico the iPhone 5s is 800US (10,599 MXN) almost totally due to import tax. Still expensive but less than in Brazil. We also have the convenience of being south of the US border so many simply get it in the US. That said, I think an Apple store in Mexico City is in order. There are many resellers (MacStores and iShops) but it is time for us to have an official Apple Store.

Seriously, why is there no Apple store in Ireland?? The premium resellers don't offer the iPhone. Thought Dublin would be a big enough market for them to consider opening a store.

Seems strange when you look at some of the locations in the UK that have them. I'd love to come out to Ireland for a Guinness session, I mean, Apple Store launch ;-)

Might have something to do with their Irish subsidies and their extremely low tax rates. Paying more taxes for sales from one shop than for the rest of Europe combined would likely raise some eyebrows.

Yeah I agree and also considering the fortune apple saves due to our tax laws you would think its the least they could do

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We don't have Apple store(we have iWorld and iMagine) in India either. I'm sure India market must be on their radar.

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The problem is that brand stores in India need to carry a certain percentage of local goods (30% if I remember correctly). That is why you find stores from e.g. Burberry, Lacoste or Samsonite, as they all have production facilities in India. For Apple this is not in the cards.

Unfortunately, that price is not that high for South America. I live in Uruguay (small country between Brazil and Argentina), and a 16GB 5S costs around $1500, $326 more than in Brazil's new Apple Retail. Customs in South America suck, hard.

Brazil has a combined import duty and VAT of approx. 40% on most foreign goods. Not quite Apple's fault. Also, the prices in Europe are not that much lower. The 5s with 64 GB unlocked is around $1200 in Germany (including 19% VAT), too.

Here in Bulgaria is $1050 for 16GB. It started with $750 but because they were the only carrier who is selling it, they made it more expensive after a week...

Ironically, the opening came with the news that Windows Phone has just overtaken the iPhone as the second most popular smartphone in Brazil, following the trends in Mexico and Peru. That's something few people saw coming.

If Apple plans to remain relevant in those markets, it needs more than fancy stores, it needs better prices as well. Foxconn has a factory in Brazil for Apple products, which circumvent most import taxes, all that remains if for Apple to set its priorities on which products to assemble locally. Right now it's overpriced 8Gb iPhone 4s and 4Ss, which cost the same as a 16Gb 4g Lumia 925.

I'm going to the World Cup in June. Guess I'm buying and reselling some iPhones when I go. Maybe I can make money on the trip instead of spending $$$$$!!

That's not a joke, if you manage to keep your price a bit lower that most of the imports-sharks you'll sell them in a second.

Maybe yes, but maybe no too. One thing that we have here (Brazil) that makes everyone buy expansive stuff like that is what we call divide. Basically we can divide that iPhone in 12x in the credit card, (I don't know any other country that does that) so we pay $97 each month for 12 months, its really hard you find someone thats welling to pay $1174 in cash.

In Poland iPhone 5S 16gb costs about $800 (lowest price only in few stores) and average pay is $600 a month. You have to be a rich scumbag to live there and be able to afford a decent LCD :) Only the mean, strong and hard will survive.

And that single Apple Store here in Sweden sees a lot of customers from Denmark. Stockholm could easily support more than one location; This one is always busy, classes filled and Genius Bar booked.

iPhone 5S 16gb is 6295:-, or $975. Minus tax it's $730.

It would be nice if the article mentioned sales tax in Brazil. Most countries' Apple Store advertised prices includes sales tax, the US Apple Store does not. Brasil has two types of sales tax applied to the shown price, ICMS and IPI, which add up to over 60% of the purchase. Back out those taxes and you find Apple is selling iPhones for less in Brazil than in the US.

David, I'm Brazilian and six years experienced professional on retail sales tax.

You forgot other two federal taxes: PIS and Cofins (9,25%), these taxes with IPI (another federal tax, 15% for iPhones) and ICMS (a state tax, average 18%) are what we call here "indirect" taxes.

There is another group of tax over the "revenue" (so to speak), IR and CSLL, those are from the direct tax group.

It's not over, iPhone 5C and 5S are still imported here, add more 16% to the crazy math of customs clearance, by the way it is funny, IPI, PIS, Cofins, insurance plus the original cost of any good imported here made the "calculation basis" to ICMS (on customs clearance).

Brazil is a shame incredible and stupid crazy machine of tax, it's very difficult to understand all the regulations and follow the regulations changes is another pain.. changes every time.. ICMS is the biggest problem I guess, every state has it's own regulation, and there are many forms to tax on ICMS, some products are taxed on the state entrance (or production of the good) anticipating the payment before the "triggering" event, it's called here "substituição tributária" (I really don't know how to put that on english, maybe "tax anticipated" is more appropriate).

It's simply crazy and bizarre .. I don't know how do we live here.

Eduardo

It's the same in many EU countries. In Romania, it's (http://www.istyle.eu/ro/iphone/iphone-5s.html) 3599 LEI which currently is $1,099.43. This is probably due to exchange rate, 24% TVA and the fact that Apple's selling through a reseller. In France it's 709€ (currently about $982). Probably a bit lower in France because it's Apple, not a reseller. But you get the idea.

But, $1,174 from Apple directly is pretty heavy. From what I see, Brazil has pretty heavy taxes, that's likely it. http://www.ey.com/GL/en/Services/Tax/Worldwide-VAT--GST-and-Sales-Tax-Gu...