The Apple phone is the most popular phone in the country and region.
iPhone has always been one of the most sought-after gadgets in UAE as every new model launch witnesses long queues at Dubai stores.
The latest variants are also one of the hottest selling at the ongoing Gitex Shoppers.
Not just the residents, but even a large number of visitors from the Indian Subcontinent and Africa also buy Apple’s devices during their visit to Dubai as they cost less in UAE than most of the markets.
On September 10, Apple launched three new variants of handsets – iPhone 11, iPhone Pro and Pro Max.
On close comparison of prices of Apple’s newly-launched devices, one notices that that Apple’s new gadgets are cheaper in the UAE than in India, China, UK and France -but it is costlier to buy here than in the US and Japan.
When prices are compared given on Apple’s website for each country, it was revealed that the iPhone Pro and iPhone 11 are 23 per cent and 14 per cent more expensive in India than in the UAE, respectively. But if iPhone Pro and iPhone 11 are bought from the UK, the UAE residents will have to pay 14 per cent more for iPhone Pro and 13 per cent for iPhone 11.
Anurag Chaturvedi, managing partner at Chartered House Tax Consultancy, says higher tax rate in India and the UK is definitely one of the factors for higher prices in these countries.
Like all major companies with a global reach, Apple has its own pricing policies also that differ from market to market and other factor that influences the iPhone prices is the currency fluctuations.
But buying iPhone Pro is 13 per cent cheaper in the US and 13.5 per cent in Japan than in the UAE.
Commenting on the reasons for lower prices in the USA and Japan, Chaturvedi finds logistics as one of the factors.
“Let me explain you it works. As per the report by Wall Street Journal, the iPhone is so expensive in India because in the Indian market where Apple has no manufacturing unit within the country and it cannot have its own brand store as they cannot avail the FDI in single brand retail, forces them to collaborate with Indian retail agencies which results in 4 to 5 middleman before the product reaches the final consumers.
“Each middleman takes a chunk that means to maintain profit margins, Apple has to increase the price. Apart from custom duty, various taxes, depreciation of currency, logistics is the reason why iPhone is cheaper in the USA and Japan,” explains Chaturvedi.
Apple has never marketed iPhone as a cheaper handset, he said, adding that “from the beginning it has an image of a luxury and exclusivity. So, yes in my personal opinion to maintain this image they do price their product at a high price.”
iPhone 11 and iPhone Pro prices in different countries (UAE dirham)
| Phone | UAE | India | UK | China | USA | Japan | France |
| iPhone Pro | Dh4,219 | Dh5,193 | Dh4,806 | Dh4,506 | Dh3,668 | Dh3,647 | Dh4,691 |
| iPhone 11 | Dh2,949 | Dh3,352 | Dh3,340 | Dh2,848 | Dh2,567 | Dh2,554 | Dh3,274 |
