Apple iPhone 5c price premium in Australia


It was the phone originally rumoured to go on sale for $99 but there are other questions set to be ask about pricing regarding the new Apple iPhone 5c.

There have long been concerns in Australia that Australian consumers were at the back of the queue when it came to global technology pricing, so much so, that the country’s federal parliament ran an inquiry into technology pricing, the report of which was tabled on July 29 this year.

So it’s interesting that Apple’s Australian pricing for the new iPhone 5c smartphone is considerably higher than in the US, even taking into account the 10% Australia goods and services tax (GST) and currency exchange rate into account.

In the US, the 32GB iPhone 5c with no contract will retail for $649. In Australia, the same phone will sell for $869.

Taking off the GST (10%), the ex-tax price drops to $AUD790. As of time of publishing, the Australian-US dollar exchange rate was AUD1 = 93cents US. Taking that into consideration, the $AUD790 ex-tax Australian price is equivalent to $US734.70 – that’s an $US85.70 or 13.2% premium for Australian consumers compared with the $US649 price tag.

However, a greater problem for Apple is likely to be that with the 16GB version of the iPhone 5c selling in Australia for $739 inc. GST, its only $9 cheaper than a no-contract Samsung Galaxy S4 phone. The iPhone 5c isn’t at first glance a significant improvement over the iPhone 5 and with the Galaxy S4 delivering a faster CPU, bigger screen and with greater resolution, it’ll be difficult for Apple to convince buyers the iPhone 5c represents a superior buy.

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