FX | Global | Monetary Policy & Inflation
The Cheapest iPhone: Which Country Has the Lowest Prices in 2022?
- By Sam van de Schootbrugge
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- 3 min read
Introduction
Each year, we track global prices for the latest iPhone, testing the theory of purchasing power parity (PPP). It states that the prices of identical products should be the same across all countries once converted back into dollars. Yet this is rarely the case. So, to what extend does the PPP theory hold for the iPhone 13, and in which country might it be appealing to upgrade this year?
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Introduction
Each year, we track global prices for the latest iPhone, testing the theory of purchasing power parity (PPP). It states that the prices of identical products should be the same across all countries once converted back into dollars. Yet this is rarely the case. So, to what extend does the PPP theory hold for the iPhone 13, and in which country might it be appealing to upgrade this year?
The Cheapest iPhone: A Year of Rising Prices
The macroeconomic landscape has changed significantly since our last publication in October 2020. Rising shipping and energy costs have increased the price of many goods. The latest iPhone – the 13 – is no different. Its price in the US is $50 more than the equivalent iPhone 12. This is a rise of 6.7%, probably fair given US inflation. With an average sales tax of 8%, the full cost of an iPhone 13 in the US is now $863.
After converting local prices into USD, only in one country can you find a cheaper iPhone (Table 1). The cheapest place to buy an iPhone is Japan. In contrast, buying the same model in an Apple store in Brazil will set you back $1,354 – a 57% premium! This means Brazil is the most expensive place to buy an iPhone, ranked number one. It is up from 22nd last year, when the iPhone 11 was comparatively just 15% overpriced. With only Greece sliding down, four of the top five countries have become relatively more overpriced since our last update.
The biggest mover, however, is Turkey. Since October 2020, the lira has depreciated 79%, moving it from the most overpriced country in which to buy an iPhone to one of the least. And, when removing sales tax, import duties and shipping costs, iPhone customers in Turkey are getting the best value for money, paying $697!
For most countries, removing tax, duties and shipping can explain the majority of the iPhone price deviation. In India, where these costs are particularly high, the adjusted price ends up being 11% cheaper than in the US. Meanwhile, in South Africa, Apple is charging customers nearly 30% more for its latest iPhone. This penalty has doubled since the iPhone 11, which may be partly due to the 6.6% appreciation in the rand.
Bottom Line: The Cheapest iPhone in the World
US customers are still getting some of the best iPhone prices globally. Were they to fly to Japan, they could get it cheaper, but only if they can get the travel reimbursed! That said, customers in Turkey, India and South Korea should not feel short-changed. When adjusting for transport costs, they are getting a great deal.
That is not so for iPhone purchasers in Brazil. Even after adjusting for inflation, customers are paying nearly 50% more than they were for an iPhone 11! And they are paying 24% more for the same iPhone compared with customers in the US.
What about the next iPhone? Well, with prices linked to movements in FX, perhaps we see the 2022 iPhone become relatively more expensive in New Zealand, Australia, Canada and Turkey. On the other end, customers in Taiwan, South Africa, China and Switzerland may want to refrain from buying the iPhone 13 and wait for the iPhone 14 (?!), as these currencies are all expected to be the worst performers over the next 12 months.
Where is the most expensive (and cheap) IPhone 13 (6.1″, 128GB)
USD prices of locally purchased
| Rank | Country | Full Cost in Local Country ($) | Overpriced vs US | Minus sales tax, import duty, & shipping ($) | Overpriced vs US | Last Year Rank | |
| 1 | Brazil | 1 354 | 57% | 990 | 24% | 22 | ▲ |
| 2 | South Africa | 1 222 | 42% | 1032 | 29% | 20 | ▲ |
| 3 | Israel | 1 122 | 30% | 938 | 17% | 7 | ▲ |
| 4 | Norway | 1 109 | 29% | 862 | 8% | 19 | ▲ |
| 5 | Greece | 1 099 | 27% | 861 | 8% | 3 | ▼ |
| 6 | India | 1 081 | 25% | 712 | -11% | 25 | ▲ |
| 7 | Sweden | 1 078 | 25% | 837 | 5% | 2 | ▼ |
| 8 | Russia | 1 073 | 24% | 869 | 9% | 36 | ▲ |
| 9 | Czech Republic | 1 067 | 24% | 851 | 7% | 17 | ▲ |
| 10 | Denmark | 1 067 | 24% | 827 | 3% | 4 | ▼ |
| 11 | Italy | 1 065 | 23% | 850 | 6% | 6 | ▲ |
| 12 | Hungary | 1 064 | 23% | 808 | 1% | 12 | ▲ |
| 13 | United Kingdom | 1 060 | 23% | 866 | 8% | 14 | ▲ |
| 14 | Finland | 1 054 | 22% | 823 | 3% | 8 | ▼ |
| 15 | Ireland | 1 054 | 22% | 832 | 4% | 9 | ▲ |
| 16 | Poland | 1 049 | 22% | 823 | 3% | 13 | ▲ |
| 17 | France | 1 031 | 19% | 835 | 4% | 10 | ▼ |
| 18 | Spain | 1 031 | 19% | 826 | 3% | 11 | ▼ |
| 19 | Mexico | 1 031 | 19% | 867 | 8% | 34 | ▲ |
| 20 | Germany | 1 020 | 18% | 834 | 4% | 18 | ▲ |
| 21 | Austria | 1 020 | 18% | 824 | 3% | 15 | ▲ |
| 22 | Indonesia | 998 | 16% | 805 | 1% | 24 | ▲ |
| 23 | Philippines | 997 | 16% | 864 | 8% | 5 | ▲ |
| 24 | Luxembourg | 997 | 16% | 829 | 4% | 16 | ▼ |
| 25 | Australia | 969 | 12% | 859 | 8% | 27 | ▲ |
| 26 | New Zealand | 966 | 12% | 815 | 2% | 21 | ▼ |
| 27 | Singapore | 961 | 11% | 874 | 9% | 29 | ▲ |
| 28 | Switzerland | 950 | 10% | 856 | 7% | 23 | ▼ |
| 29 | China | 941 | 9% | 812 | 2% | 32 | ▲ |
| 30 | Taiwan | 935 | 8% | 866 | 8% | 26 | ▼ |
| 31 | Malaysia | 930 | 8% | 852 | 7% | 31 | ▲ |
| 32 | UAE | 925 | 7% | 854 | 7% | 33 | ▲ |
| 33 | Korea | 913 | 6% | 777 | -3% | 28 | ▼ |
| 34 | Thailand | 896 | 4% | 812 | 2% | 35 | ▲ |
| 35 | Hong Kong | 872 | 1% | 849 | 6% | 37 | ▲ |
| 36 | Canada | 870 | 1% | 815 | 2% | 30 | ▼ |
| 37 | Turkey | 866 | 0% | 697 | -13% | 1 | ▲ |
| 38 | Japan | 856 | -1% | 754 | -6% | 38 | ▲ |
| 39 | United States | 863 | 0% | 799 | 0% | ||
| *8% Sales Tax added to US price | |||||||
| Prices correct as of 10 January 2022 | |||||||
| Source: Macro Hive, The Big Mac Index, Apple, Simply Duty |
FAQ
→ What is the cheapest iPhone?
The cheapest iPhone on the market right now is the iPhone SE. Many cheaper models exist, but they have all been discontinued. Japan currently sells the lowest-priced iPhone, according to our research, with Turkey and Canada following closely behind.
→ How much is the cheapest iPhone?
Our research suggests that the cheapest iPhone 13 is $856 and is sold in Japan. However, prices can vary depending on where you live. If you live in Brazil, you would pay $1,354 for the same model.
→ Which country sells the cheapest iPhone?
Japan sells the cheapest iPhone, followed by the US, Turkey, Canada, Hong Kong and Thailand. However, the cost of travelling to these countries may outweigh any savings you make on the model. So this information is only useful if you happen to be holidaying there in the near future!
Sam van de Schootbrugge is a macro research economist taking a one year industrial break from his Ph.D. in Economics. He has 2 years of experience working in government and has an MPhil degree in Economic Research from the University of Cambridge. His research expertise are in international finance, macroeconomics and fiscal policy.
(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)