Why Apple iPhone4S Costs More in Australia + Today Show and iPhone 4S and Nokia N9

I have been hearing around the traps today some commentators ripping into Apple about the differences in the quoted RRP’s of the iPhone4S in the USA vs. Australia. I have listed them below.

USA Apple Store RRP –
$199 (US) for the 16GB model
$299 (US) for the 32GB model
$399 (US) for the new 64GB model

Australian Apple Store RRP -
AUD$799 inc. GST for the 16GB model
AUD$899 inc. GST for the 32GB model
AUD$999 inc. GST for the new 64GB model

The comments in the media I have heard today have been saying that Apple is ripping us off in Australia because the iPhone4S costs in some cases more than 3x the US price.

The bit they have not read on the press release is this -
‘iPhone 4S comes in either black or white and will be available in the US for a suggested retail price of $199 (US) for the 16GB model and $299 (US) for the 32GB model and $399 (US) for the new 64GB model.***’

Did you notice the ‘***’- that means there is more information relating to these details.

Further down the page on the press release, you will see this –
‘***Qualified customers only. Requires a new two year rate plan, sold separately.’

On the Australian press release, there is no ‘***’. So, in Australia the RRP is for ‘outright purchase’, in the USA the RRP is for the phone, on a two year contract. This means you don’t own the phone until the contract term has concluded and this is why you get a lower price.

I am all for screaming when Aussies are getting ripped off, but as long as Apples are being compared to Apples. (sorry for the pun, that is terrible I know!!)