Are you ready to buy the new Iphone 3GS? Better your pocket be ready too. As technology extends to new stages, providing more conveniences for the society making our lives more simple and practical, the longing to have the updated equipment is a endless run, due to the fact that technology changes faster everyday. Normally, the price that you pay for a brand new apparatus is high; however, Apple Company inverted this rule while bringing the Iphone with a modest price in US: US$ 300. Two years after that, they launched the new Iphone version 3GS that you can buy with even less money. Nevertheless, this new price advantage implemented in US didn’t arrive at Brazilian market, which was anxious to get a high quality product with a reasonable price. That brings us the question why the same product can have such different values? In our case, the Iphone 3GS commercialized in Brazil has such a higher cost comparing to the same product sold in US due to the abusive taxes, the telephone servide companies’ profit and luxuries status of the new Macintosh gadget that arrived in our country.
The First reason why the Iphone 3GS price is high in Brazil has to do with the exorbitant taxes that the government applies to cell phones made outside the country. “The tax amount is more expensive than a airplane ticket to US plus the money to purchasing the same mobile” said Roberto Silva, a 24 years old student, to Veja Magazine published on October 27th. He and his friends have declined to buy the new Apple gadget, once they have found about the Iphone’s price. However, what many costumers don’t know is that more than an half of the price is composed of suffocating taxes. According to Abinee (Associação Brasileira da Indústria Elétrica e Eletrônica) on its report released on 2009, the tax percentage for an imported cell phone can be more than 60%, including IPI, ICMS, Broker costs and PIS/Confins. “It’s is an awful burden for the costumers that don’t see these amount returning in high-quality public services” said Antonio Amorin, Abinee President. Therefore, these heavy duty that are imposed to Iphone 3GS by Brazilians law, as a barrier for cell phones made outside the country, will maintain its price up high for the Brazilians customers.
The second reason why the Iphone 3GS has a steep price comparing with the American is based also on the profit margin set by the telephone service companies. On the last two decades occurred a revolution in the telephone service that is offered to the clients. From poor governmental service to specialized private assistance, an ocean of investment was dropped from all tele companies in order to make this radical change. Ricardo Saldanha, 54 years old and 20 years working as a TI engineer for a cell phone company, remember this period. “It was more expensive than starting from scratch, because we needed to replace all old equipment used by the preceding governmental companies”. Consequently, to recover all these funds spent by all telephone corporations, the profit margin for their services are considerable high. In addition, while the US company that is allowed to purchase the Iphone can require a two years contract with the buyer, the Brazilian companies, by law, can only make a one year contract, what also influences to rise the cell phone prices. João Castro, 34 economist, said to Valor Econômico printed last Sunday that “bigger the investment, bigger the risk for the telephone companies; and the only way to get out of this risky situation is to get a higher profit and, as a result, charging high prices for their products”. Thus, making the Iphone value higher, the telephone companies want to increase their profit and through these earnings regain part of the investment they have made in this mobile service market.
The third cause why the Iphone 3GS is on the stores with at least three times more expensive than the American ones, is the frenzy of thousands consumers that see the new Apple good as an icon of status and keep crowding the stores and vanishing the available units, independently of the price. Three weeks after the Iphone 3GS has been launched in Brazil, it was almost impossible to find it available on some stores. The telephone corporations are celebrating the sales but also are complaining the low quantity of Iphone 3GS exported by Apple. “If, for any chance, 300 Iphone just appear in my store, I guarantee you that I could sell it in less then 3 days” said proudly the VIVO manager of the Villa Lobos Mall store, Marcos Pereira. At the same store, Silvia Nakata, 28, Ambev Sale Manager, was disappointed for not finding the new Apple mobile. “Everybody in my department wants to have one 3GS Iphone and some of them keep on showing them to all colleagues as a status certificate”, she said. According to Dr. Waltenberg, 65, psychologist, on his interview about the Iphone phenomenon published by UOL on October 1st, everyone wants to reach a status level higher than your own possibilities for the moment, “if you can’t buy a mansion, you will want at least to buy a nice car to show everybody; if can’t afford an expensive car, you will buy something else to get the others attention and now the Iphone is the new heat, latter it will be placed for something else”. As long as the 3GS phone sales are on fire due to the huge demand, it will follow the economic law, manipulating the price to stay at stratospheric level. In conclusion, as long as the Iphone is considered as a powerful status icon by the customers, the demand will sustain the elevated cost for the fashion and innovative cell phone created by Apple.
Even though Brazil has a lower GDP and a inferior per capita income comparing with same US indexes, according to 2008 IMF database report publised on Febuary, the new Iphone 3GS is purchased in Brazil with a very upper price contrasting with what is paid by the Americans for the same product. This occurs because of the massive taxes, the profit hungry of the telephone companies and the status sensation that the new Macintosh mobile provides. However, this huge price gap between identical products commercialized in Brazil and abroad, appears not only with mobiles but also with several others technological items that are not made in our country. As long as the new technologies produced outside are doomed to have offensive high values, it will be available only for a small part of the society, not reaching its full capacity of promoting innovation everywhere and to anyone. Until the High-Tec is perceived as a shared progress that should be accessible to the majority, the Iphone 3GS new buyers will need to pay the bitten bill.


