Key Point 4: A $1,002-dollar 32GB iPhone 4 translates to: A +12% effective...

A $1,002-dollar 32GB iPhone 4 translates to: A +12% effective price increase from last year (price-corrected for forex rates).

[ Apples and iPods ]

The Math on Globe’s iPhone 4 Price

Abe Olandres September 18, 2010 · 2 min read

Listen to article

BPI expands barcode cash deposit service to Robinsons Retail stores Instagram removes end-to-end encryption for DMs Sony confirms Xperia 1 VIII launch date Globe AT HOME offers free upgrades to 1Gbps and Wifi 6 routers to loyal postpaid subscribers HUAWEI WATCH FIT 5 Pro now open for pre-order in PH

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?

React to this article:

globe iphone 4 globe iphone 4 price price of iphone 4

Abe Olandres

Editor-in-chief

Abe is the founder and Editor-in-Chief of YugaTech with over 20 years of experience in the technology industry. He is one of the pioneers of blogging in the country and considered by many as the Father of Tech Blogging in the Philippines. He is also a technology consultant, a tech columnist with several national publications, resource speaker and mentor/advisor to several start-up companies.

7,991 Articles

View all posts by Abe Olandres →

126 Comments

sonny · 16 years ago

I’d rather buy galaxy s, htc desire or xperia x10(when android 2.1 is out)rahter than buying this from globe

dude2cool · 16 years ago

I agree with nexusboy. My tita bought hers from canada for an equivalent of 27k ++ only and she bought me an htc desire for 24k equivalent to pesos also. So yeah, talk about overpricing. Lol for globe.

nexusboy · 16 years ago

“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.”

uhmmm, the price for iPhone 3GS and 3G are OVERPRICED to begin with. so the real reason in preventing Globe from pushing the prices to go down is the PROFIT to go down when that happens. simple as that. and yet again, GLOBE has earned the reputation of ridiculous pricing due to GREED.

unlocked iPhone4 – 16GB is only sold for Php 28,300 in HongKong.

Alren · 16 years ago

Awful. :(

icedragon · 16 years ago

This is definitely not for me.
The price is awful. Verging on the ridiculous.
I can do a lot more with my money.
But for the well-heeled, why not?
I’d rather get an Itouch.

Winner · 16 years ago

got an unlocked iP4 for my globe, next.. a high end android phone for my smart line and nokia for my Sun :-)

Louie · 16 years ago

Yup force Globe na magbaba ng Presyo iboycott ang first 15-30 Days im sure baba yan bigla then magbibigay sila ng Pre-Christmas Promo. Hinde dapat ganun kataas yung price eh and besides China is getting Iphone 4 na rin Im sure magkakaroon naman bagong source ng pagbibilhan aside from HK… Baba rin yan to 38K at least after a month October to November. Well I would say na mataas na rin count ng android kaya mapipilitan din naman magbaba eh hahaha… chillax lang ako bagsak presyo lang din yan after a month…

Jamby · 16 years ago

I think Yuga’s third reasoning why it costs so much tells it all…

dami kse gusto kumuha agad-agad at magkaroon…e kung i-try natin na walang kumuha sa launch nito….cgurado bababa yan after a few months…

mel · 16 years ago

IP4 is not for everyone

Joey · 16 years ago

When considering FOREX rates, taking current exchange rates may be misleading. Globe may have locked in their delivery orders weeks/months ago, and booked FOREX contracts (locking in a FX rate) to cover payment of the units. If so, those FX contracts may be pegged at a higher exchange rate then what we have currently, and the cost is being passed on to the consumer. It sucks, but no corporate Treasurer would allow that kind of FX risk as an overhang.

Joshua M · 16 years ago

@dude2cool iOS is still software

dude2cool · 16 years ago

@Joshua m If you know how to customize a smartphone from its stock UI to your liking that works for you. If you know how to root an Android and edit it’s ROM and have apps and converted media files placed and installed directly on it. Then perhaps that passes as techie. Coz for me it does. And you can’t do these things on iOS’. You can jailbreak though, assuming if your techie enough to know how to. If not, you can always pay someone to do it for you(minus techie point though lol). But thats it. So yeah, just few points that says techie for me.

yizhan · 16 years ago

This is the Philippines… what else we could think of.. >.<

Joshua M · 16 years ago

@Dude2cool sige, techie ka na ba pag Android user ka imbes na iOS user?

Dude2cool · 16 years ago

Trust me you dont want the iphone4 when you have tried a high end Android phone (if your techie). Yes the resolution is great but that’s all your getting. So much for a revolutionary phone. Front facing cameras and Video calls are not tech revolutions, their antenna gate issue is LOL. And dont get me started about the price here in Phils. Its crap. I got my HTC Desire Android now and I say its way way better than my 3GS which i still use as my sun phone. Might as well buy iPod Touch 4th Gen. I’m planning to. Anyways, that’s just me. If your not too techie enough to for an android and wants something “user friendly” (like my aunt who got her iPhone4 from Canada) and got money to burn and waste…. your choice then. LOL.

Joshua M · 16 years ago

Kung makakalipat lang ng carrier… like SUN or SMART wew pero parang malabo un its like iPhone on Verizon

AkoSiBatMan · 16 years ago

High Price + Bad Service = NO TO GLOBE!!!

kukuoz · 16 years ago

globe is more evil than apple…

Joshua M · 16 years ago

Si Globe lang talga ang nag gagawa ng prices.

sabi ni Steve “We want this to be in the hands of everyone”

Globe says “F that!”

Anyway I’m buying an iPod Touch and a good dSLR in exchange for the cam. I’m not gonna use it for stills. I just want the A4 chip and retina display and development purposes. I would buy an iPhone if Globe wouldn’t be such an A hole with the pricing.

Anyway im on globe network paren lol

Joshua M · 16 years ago

Kurakot talga globe. Hirap talaga bumili dito sa official wew. anyway about the contest?

pabs · 16 years ago

If you can’t afford iphone, the best and I think the better alternative is the Samsung Galaxy and the Nokia N8

poche · 16 years ago

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.

jhoravi · 16 years ago

Hi yuga,
Does that apply to HTC phones here as well?

kyx · 16 years ago

I think we also have to consider that Globe isn’t just paying for the units. They’re also paying for the rights.
Also, I’ve never thought that converting currencies indicate actual value differences (remember the inter-country bigmac price difference?).

Sunofa · 16 years ago

tignan niyo naman ang price pag naka line… its way cheaper kahit plan 299 brings down the price by almost 8k… I think sinadya nila taasan ang prepaid price para dumami ulet postpaid subscribers nila… cause much reasonable naman ang prices ng postpaid

Arvee · 16 years ago

@elbert Of course, they can’t do that. And even if Globe can do that, imagine the import tax they have to pay for every unit coming inside the country.

We could put the blame on Globe, but come to think of it, kung Smart or Sun ang nakakuha ng distribution rights ng iPhone, ganun lang din naman ang magiging presyo.

Still, Gray Market FTW. Apple, WTF.

gigi que · 16 years ago

@bariles

the thing is, it’s no longer an Ayala majority controlled company.

you have to blame the Singaporeans. Singtel owns 47.3344% of Globe Telecom.

Source: http://www.pse.org.ph/html/ListedCompanies/pdf/2010/GLO_Top100_Jun2010.pdf

gigi que · 16 years ago

well marami pa rin kasing mayayaman at mayayabang na naloloko ang Globe at Apple.

batu-bato sa langit…

bariles · 16 years ago

PROFITEERING.

No other reason but the selfish motive of PROFITEERING!!

Los propietarios mestizos de espaÃ±ol GLOBE deben ser llevados a la cÃ¡rcel!

Al diablo con los Ayala!

Jhay · 16 years ago

Hopefully the price would be slashed this week. I have a feeling my aunt would reconsider her reservation when she finds out about the current price.

Abe Olandres Editor-in-chief · 16 years ago

@rolex – here’s the formula:

%diff = {(PH Price – US Price) / US Price } * 100%

Please try that.

leeto · 16 years ago

Hay nako! let us be practical, ang daming brands na mas mura. Kaya mahal yan kasi monopolized ng Globe. Wag tayo padadala sa mga kalokohan na ganun. Juan panahon na para tayo magising>

Rolex · 16 years ago

@Yuga, you’re wrong.

$699/$1002 translates to 70%.

30% is the price difference from the US no-contract price of $699.

Chad · 16 years ago

regarding the previous iphone 3G in the US you can have it for only $99 with an AT&T plan in their apple website.

iphonedevpinoy · 16 years ago

capitalism, ho!

Mr.A · 16 years ago

They just used their old introductory price. I don’t think they consulted the market value of the IPhone.

Fleeb · 16 years ago

@Elbert, I do not think that’s how it works.

Elbert Lo · 16 years ago

Globe should just buy their iPhones from the SG or HK Apple Stores for less than P30,000. And that’s unlocked!

This type of behavior from Globe is the reason why they’re now lagging behind Smart and Sun.

tantra2gadget · 16 years ago

Hehehe,i cant afford iph0ne 4 expected price,maybe buying samsung wave is the best remedy

rye · 16 years ago

may nanalo na ba sa contest on guess the iphone price? wala akong update dun eh.

Abe Olandres Editor-in-chief · 16 years ago

@calvin – UK has a 17.5% VAT while the Philippines only has 12%.

Caloy · 16 years ago

An open line iPhone 4 from Hong Kong sells for roughly PhP35,000 through the official Apple website. Similar price on Singapore I think for the same situation. That’s already for the 32gig version! Sobrang mahal dito!

Nitecrawler · 16 years ago

AFAIK..globe iPhone 3GS stocks are gone few months back. My reserve loyalty iPhone 3GS was given to other buyer as soon as I told them that I will avail instead of the iPhone 4. But with that price!!! The CSR guy who will call me will hear a bucket full of expletive from me instead…LOL

calvin · 16 years ago

i think you should compare it to the selling price in other countries. magkano ba sa singapore?

sa UK 599 pounds ang 32GB. mga 41k++ pesos din yun so hindi ganun nagkakalayo.

Eason · 16 years ago

Sheez, even mega cellular is selling iPhone around 40k and its even openline. In short why buy at globe for cellphones if its even locked + more expensive. People with plans are the only ones to get that.