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September 18, 2010

The Math on Globe’s iPhone 4 Price

So we finally got the official retail price of the iPhone 4 from Globe today and while the price point is within the expected range, it turns out it is more expensive by at least 12%. Here’s what we got from a little digging.

The original no-contract price of the iPhone 3GS and iPhone 4 is $699 (32GB) in the US via AT&T (exclusive of taxes). When the iPhone 3GS was released with Globe Telecom last year, the prepaid price was Php42,250 (which includes taxes and some margins).

At that time (July 2009), the exchange rate was in the Php48 : $1, which makes it about $880 when converted back to dollars.

Today (September 2010), the exchange rates are a bit lower — Php43.9 : $1. Common sense would dictate the local Philippine price would have also gone down, right? Nope.

Turns out the 32GB iPhone 4 will retail for Php43,699. In today’s exchange rates, that amount is equivalent to a staggering $1,002!

Had they followed the $880 intro price from last year, it would have been only Php38,600. A difference of Php5,100.

A $1,002-dollar 32GB iPhone 4 translates to:

  • A +12% effective price increase from last year (price-corrected for forex rates).
  • A +43.2% price difference from the US no-contract price of $699.
  • A +13.2% difference from expected price and actual price.

Now, why would the price of the iPhone 4 in the Philippines gone up instead of down? Here are several possibilities:

  • Inflation might have been a factor but that’s just around 4% so it shouldn’t have been a huge one.
  • Inventory of remaining older units might have prevented Globe from pushing the prices down. If they adjusted the prices of the 3GS and 3G, they might not be making any profits from its sale. Maybe once the remaining inventories are all sold off, they can adjust the prices again.
  • Supply and Demand might also play a role here. From the looks of it, there’s high demand for iPhone 4 (same with SG and HK) and supply is limited.

The numbers above are just loose estimates but they represent a trend. I remember that a lot of people were complaining about the launch price of the iPhone 3GS before that Globe decided to slash the prices a week before the release date. Maybe they’ll surprise us again. Who knows?

Globe to launch iPhone 4 on September 26
Globe iPhone 4 Public Launch
Apple sells unlocked iPhone 4 at $649

65 Responses to “The Math on Globe’s iPhone 4 Price”

  1. - first time iphone4 user- says:

    enough with the price wars, exchanges of comments..
    alot of people STILL lined up for the iphone4 during the launch last sunday sept 26. i was one of those who waited so long just to have this! hehe..

    my point is- if can buy one, great! go ahead and get one.

    for those who cant, stop whinning about the price. it may be unreasonable but it is IPHONE4. people want to be the first in getting this one heck of a (smart)phone.
    illogical as it may seem, but alot of consumers buy it (IPHON4)

    what you (those who CANT afford) should do—- save enough money and go buy one the next time apple launch a new iphone, perhaps iphone6! hehe LOL
    thats what i did back then (launch of iphone3g here)!

    • Poor says:

      Your a dumb arse. There is something called smart buying. You don’t buy something like overpriced things. Buy it where it’s reasonable. Ipon ako ipon then buy jak arse

  2. dude2cool
    Twitter: ricklabrador
    says:

    @first time iphone4 user Aw. your funny. Please, dont assume that because we whine we don’t have the bucks to buy one. LOL. If you happen to have read the few comments, that “thing” that you just bought only cost 28k+ in the US without contract which i could have let my aunt bought buy for me but chose not to and had her get me the HTC Desire instead. And I’m all good with my 3GS. I happen to read reviews and infos before purchasing techie stuffs. I dont rely on hypes. LOL

  3. lynem says:

    @ first time iphone- oo nga. masyado mo naman hinhamak mga tao.. considering everything, like taxes, etc. dapat iphone4 should not be priced at that level. mejo reasonable pa din dapat.

  4. - first time iphone4 user- says:

    @dude2cool: first, i did not buy this phone because of the hype, or fad o nakikiuso lang. and secondly, kaya nga ko bumili because i also read reviews not only from yugatech but also from other blog/reviews (gsmarena.com, mobile, technblog)

    what i meant was the price cannot be compared with other countries because not all have the same procedure like taxes and other fees globe has to pay. also, its the consumers who are to be blamed din because even with the price at this level, they are willing to pay. giving more reason for globe to increase the price because of the demand.
    hehe peace!

  5. dude2cool
    Twitter: ricklabrador
    says:

    @first time iphone4 user Well. If that was your point. Fine. You where just so blustered about how you got your iPhone4 and brag about whiners not affording “it” in your previous comment that’s why i reacted.

    Guess you dint get to read technical reviews and comparisons on smartphones though. Those review sites you mentioned are mostly advert/promo purposes. Meaning they get paid for doing it by the company they make reviews of. You should try Phonedog, pocketnow and Smartphoneenvy. No bias there and there you’ll get my point. And for God’s sake the price here is way off verging on ridiculous. With the price here, I could get an Archos70 tablet, and an HTC Desire in abroad. And to think that the Desire and iP4 are of the same price range if you buy them off contact. LMAO. Im too practical for that.

    Good for me I got someone to buy stuff from abroad.

    Good for you that you got money to burn though. Like literally…

  6. iPhone 4ever! says:

    well these prices don’t compare to the one i saw at Infomax Trinoma.

    32GB for 80K??!! WTF! haha

  7. mikee says:

    Globe is stupid. No wonder their stocks are down. Just plain stupid. Im a globe user for 8years now so dont get me wrong. but i really hope Globe crashes.

  8. cory zeanah says:

    yep sana naman slash nila malaking bagay na din ang 3-5k sa panahon ngayon. saka para dumami din yun gumamit ng iphone.

    or if madami demand malamang slash ng globe un price several weeks after launch.

  9. ryan13 says:

    Hi peeps! Im selling Iphone4 for 38K. Sealed and brand new. Please comment if you’re interested.
    Thanks!

  10. Dominican says:

    Overall an end user friendly site, several great points! This is usually a well written article, I most certainly will try and read others. With Respect

  11. Cola Grill says:

    do you have a post regarding iphone 4s?

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