If customers in North America think that the iPhone 5S is too expensive, they’ll be surprised by how much people in India have to pay.
Prices of consumer electronic devices vary region by region, because there are various factors that come in play, including but not limited to local taxes and strength of the local currency. In the U.S., a 16GB unlocked iPhone 5S costs $707 after taxes, now this isn’t cheap but its not as expensive as certain regions. Take India for example, there customers have to pay as much as $857 to get their hands on the latest Apple smartphone. Even though customers in Jordan are likely to pay as much as $1,091.01, technically the iPhone 5S is most expensive in India.
These figures are based on pricing alone, however, when purchasing power parity is added into the mix, its an entirely different story. Compare the purchasing power of an average person with the country’s GDP and the iPhone turns out to cost 22.3 percent of per capita GDP, as opposed to 18.3 percent in Jordan and 19.8 percent in Vietnam. Going by this consideration, the iPhone 5S isn’t the cheapest in North America, its actually the cheapest in Qatar, where it costs 0.76 percent of per capita GDP.
In certain markets, where Apple doesn’t partner with local carriers, the iPhones are even more expensive as they end up in those market through grey channels. Customers may end up paying well over $1,000 upfront for an unlocked unit.