Apple Inc. (NASDAQ:AAPL) Reduces Price of iPhone 4 and 4S By Up to 25% in Brazil
According to a report from O Globo, Apple Inc. (NASDAQ:AAPL) has reduced the price of the iPhone in Brazil by a substantial amount, lowering them down to over 25%. The Cupertino company lowered the price of the 8 GB iPhone 4 to R$ 1099 (US$544) from R$ 1499 (US$741) and also dropped the 16 GB iPhone 4S from R$ 1999 (US$989) to R$ 1699 (US$840).
In Brazil, AAPL does give customers the option for 12 month financing, however, if a customer pays up front, they will be awarded a bonus 10% discount, lowering the price of the iPhone even more. After bringing some of Foxconn’s operations to Brazil, and lowering the company’s overall costs, the price of the iPhone is likely reflecting the change. It is unclear however, if the the new price reduction will affect the iPhone 5 as it is not sold in Brazil’s online store.
In the US, the 8GB iPhone 4 is available unsubsidized for $450 before taxes, which could easily bring it up to over $500. Even so, it appears that with the 15% discounts, Brazilians are still paying a higher amount for unlocked iPhones, as opposed to their US counterparts. Apple has begun hiring for employees at its retail locations in Brazil, ensuring that customers in the country recieve the same experience as all others do around the world. It remains unclear if the price reductions will reflect in other markets around the world.