Truth About High iPhone 6 $1,000 Cost in Russia and Europe
iPhone 6 price in Europe, Russia and U.S. differs a lot. If Americans can buy the brand new iOS device for $199 [with a contract], iPhone 6 price in EU can reach about $970 and nearly $1,000. Why does it happen?
It is now understood that iPhone 6 price in Russia is led by the declining ruble value. Local currency costs less and Apple has to protect itself by raising the cost to $1,000 which looks much compared to the U.S. price. Still international norms that are responsible for tech and other products cost in different countries across the world explain why such high prices exist.
You should remember that Apple originally sells its unlocked iPhone 6 at $649. When you get a chance to buy the same very model locked at $199 [Walmart even sells iPhone 6 at $129] you sign up a 2-year contract with AT&T or Verizon and your new carrier gives the Cupertino-based giant over $400 to cover the difference. Of course, the mobile company then charges you on a monthly-basic to get the money back.
Such subsidies are not common to Europe and Russia where service plans are low-cost compared to the American data plans. But in those countries you have to pay high taxes on cell phones and other foreign devices and this is what causes the huge price difference between U.S. and other parts of the world.
While Russia doesn’t have such high taxes as Europe, it has economic problems that are to be solved. Apple is most likely creating some room to be protected by future currency instability. It also has opportunities for further discounts if the situation stabilizes and ruble becomes stronger.