iPhone X So Expensive In India "You Can Fly To Hong Kong, Buy It, Come Back And Save Money"

Tyler Durden's picture

One day after the most anticipated Apple product launch in 10 years, several problems have emerged for the much hyped iPhone X, face-recognition demo flop notwithstanding: it will be substantially delayed confirming all earlier reports of supply-chain bottlenecks, and it will be expensive, perhaps prohibitively so. The introductory prices of the iPhone 8 and the iPhone 8 Plus have gone up compared to the prices of the iPhone 7 and the iPhone 7 Plus. The iPhone X, meanwhile, will price in the 4 digits well equipped. Addressing this issue, the WSJ has a front page article titled "Apple’s New iPhones Gamble on Allure of Premium Pricing."

In one place that gamble may prove insurmountable. As India Today writes, when it goes on sale in India on November 3, the iPhone X will cost Rs 89,000 for the 64GB version. The top-end variant with 256GB is going to cost Rs 102,000. "In other words, this is one expensive phone, although you can say that the iPhone has always been expensive."

To demonstrate just how expensive, on a purchase price parity basis, the iPhone X will be in India, India Today writes that "the other thing that you can say about the iPhone X is that it is cheaper in some other places. As it always happens, the market where the iPhone X is going to be the cheapest is probably Hong Kong." 

In fact, the iPhone X is so expensive in India, and so cheap in Hong Kong, that you can go Hong Kong, buy the phone, and come back and yet save some money. And this includes the cost of flight ticket to Hong Kong. Just see the math."

 

iPhone X (256GB) in India: Rs 102,000

 

iPhone X (256GB) in Hong Kong: Hong Kong Dollar 9,888. This means using the current exchange rate, in Indian currency the price is Rs 80,999.

 

What does this mean? It is cheaper to go to Hong Kong and buy the iPhone X 256Gb variant there.

 

The iPhone X will be available from November 3. Now, if you book your flight to Hong Kong today, the cheapest flight in the first week of November that you can book from Indian will cost around Rs 20,000. If you book a flight from Kolkata, you can get a return ticket to Hong Kong for little over rs 17,000. From Bangalore it is around Rs 19,000. From Delhi, around Rs 20,000. From Mumbai it is a little more expensive.

Flight ticket: Air Asia Rs 17,800

iPhone X 256GB: 80,999
Some other expenses: Around Rs 2000 to Rs 3000
Total: Around Rs 1 lakh
Money saved: Around Rs 2000

The report's conclusion:

Now, we know the whole thing sounds like a joke. And in a way it is. No one is going to go specifically to Hong Kong from India to buy the iPhone. Also, it works best with the 256GB variant. But it does show the ridiculousness of the iPhone prices. and particularly the iPhone X prices, in India. Is it because Apple can't price the iPhone any cheaper? Is it because Apple wants big profit margins? Is it because of Indian government taxes? Is it because Apple wants to keep the iPhone prices high so that it continues to a status symbol in India? We don't know. Only Apple can answer these questions, if it wishes to answer them.

For now Apple is ignoring these, and various other pressing questions - including the whole animated poop emoji. Overnight Doug Kass released the following assessment of why this time Apple may have gone too far:

Apple continues to deliver an expensive smartphone relative to its peers, with many features that are already available from its competition and most of which were anticipated, including face recognition, a full-screen interface and no home button.

 

The only exception to reality versus anticipation was the later-than-expected availability, which is toward the end of the year (orders will be accepted on Oct. 27 and deliveries are slated for Nov. 3). As a result, analysts could take 3 million to 4 million iPhones out of their December quarter projections and reduce full-year 2018 estimates by about $0.40 a share.

 

However, the new Apple phone will provide an animated poop emoji so you can talk crap to your friends.

 

The starting price for the 64GB model of the iPhone X is $999 and $1,149 for the 256GB model. The Apple smartphone continues to be a high-priced aspirational product accompanied by a remarkably effective marketing effort that is stretching its status symbol appeal. However, I see little incremental to the latest product offerings, leaving room for disappointment relative to optimistic expectations. (It is why I initiated an Apple put position yesterday morning and added to that position when the stock was up $2 early in the afternoon).

 

The expectations of an Apple replacement super-cycle accompanied by higher unit volumes and much higher average selling prices, leading to expectations of a "hockey stick" of earnings growth in the coming fiscal year coupled with a general confidence in sustainable growth from there, have spurred a rise of more than 50% in Apple's one-year forward price/earnings multiple in the last 1 1/2 years.

 

I clearly have underestimated the strength of and the confidence in the Apple franchise over the last year. Recognition of this has led me to maintain more of a trading-oriented short position, whereas years ago I had more of an investment short position, which proved successful. Nevertheless, I continue to believe that these aggressive "going forward" expectations for Apple and the company's current valuation remain too ambitious.

But the biggest threat facing the iPhone and perhaps the entire Apple business model, is if its products are no longer perceived as the pinnacle of "coolness." And while it is too early to conclude either way, following yesterday's disappointing and badly leaked release, many appear to be taking aim at Apple not as the source of brilliant Steve Jobsian innovation and "hipness", but as the target of mockery, scorn and humor. Indeed, as one readers suggested, "The bloom may be coming off the rose.  Even folks in the twittersphere piling on.  In the past there was such a halo around apple, nobody would make fun of them.  Now it seems the opposite."

Iis the idol worship coming to an end? According to these widely publicized reactions to the iPhone release, the answer appears to be yes.

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samjam7's picture

No worries, the SNB stands ready to buy the entire APPL market if necessary all to devalue its currency....the glorious times we live in.

aliens is here's picture

$9888 HK dollar = $1256 US is not cheap. It's highway robbery. How much longer is Apple sheeples going to put up with the price gouging?

SoDamnMad's picture

Hell of a lot of new phones out there with innovative features for a LOT less.

Byrond's picture

In India you can pay 100 people to use landlines and fax documents and act out YouTube videos and cook all your meals and feed you all your meals fork to mouth for one year and still save money as long as you do not buy an iPhone X. And that does not include any service fees. Basically, you have to be Family Guy-level retarded to buy an iPhone X. 

Byrond's picture

But I have to say that the lack of a curved screen makes all the people using curved screens look Family Guy-level retarded. 

Last of the Middle Class's picture

For the last 2 or 3 upgrades I've noticed everytime I see someone who immediately went out and bought the new model, it's people I know or can easily surmise by their attire that their finances just don't support such a move. Even within my extended family I"ve noticed this and it just seems to get worse with each new model. Farther and farther from reality we go. I guess they're hoping the "alternative minimum income" will cover the necessary food and healthcare down the road when they've accumulated nothing after a lifetime of work. (If they work at all)

Byrond's picture

I like to see (and do see) minimum wage workers with flagship phones. Because then I know that phones don't make your life better or cooler. 

ElTerco's picture

Glad to hear that Apple has finally played catch up with some of the features that other phones already have. What idiot will buy this thing when other phones offer more features for a third the price?

insanelysane's picture

"What idiot will buy this..."

PT Barnum hit the nail on the head, there is one born every minute.

gmak123's picture

It's sooooo expensive in India because India has import taxes you morons. It's nothing to do with Apple. Apple will sell in Hong Kong to Indians. Who cares as long as apple can sell more phones.

redmudhooch's picture

Anyone that pays $700 for a telephone should not be allowed to vote.

sinbad2's picture

Should not be allowed to live, they are fucking up the gene pool.

insanelysane's picture

Basic Income must be large enough so that people receiving Basic Income can afford the best iPhone X.  Anything else would be too cruel to imagine.

Gordon_Gekko's picture

Apple is FINISHED.

floosy's picture

Or you can save all your money and not buy some overpriced NSA spying tool at all.

Gordon_Gekko's picture

I will prefer death to buying this iCrap.

In fact, I wouldn't take it if somebody offered me money to take it.

Ron_Mexico's picture

"facial recognition technology," yeah that doesn't have any Big Brother overtones . . . <Sheeple>

BlackSun59's picture

Supposedly Jobs left a list of products to design and introduce for the next ten years or so, in order to keep the company at the so-called cutting edge.

Was this next iPhone really on that list?

sinbad2's picture

A thousand bucks for a phone, and Americans are crying poor, yeah sure.

 

sinbad2's picture

I knew when Jobs died Apple was cactus.

OccamsCrazor's picture

The only people dumb enough to own Iphones are teens and celebs.  

 

hardly a 'status' symbol, or aspirational.  

onmail1's picture

What iphone

it is difficult to buy even tomatoes nowadays

The USA aligned bizmen controlled govt

led by unelected dictator Jetley is running

the govt like a private co. with the motive of collecting

more & more tax

earlier the tax which was 12-14%

has become 28%

Jetley befools the rest of govt with financial mumbo jumbo

(Mabbee he wants to derail the govt secretly)

Also he is promoting collection of biometric data of

all citizens (adhaar) , It is possible that this pro-america dictator

is working for CIA which wants to collect all info of all citizens

in order to record all info including all phone calls, all sms & internet activity

of all citizens of India,

He may be working like an agent of west to enslave freedom of Indians

Last time this happened 250 years ago when 3 hindoo moneylenders of calcutta

gave huge money to Robert Clive of east India Company in order to raise

an army , they also gave him indian girls to enjoy and became his agents to

pass messages to indian kingoms , East india co fought indian kingdoms

& looted their treasury(gold, silver, diamonds, pearls) and transported it to Britain

on 100 ships, when these moneylenders went to Robert Clive,

he gave them a thumbs down & ruined them

Later he became owner of vast estates in Bengal where the British

ruled only for money & profit & allowed only cash crops like

tea, blue dye indigo, opium etc

as a result there was lack of foodgrains & when in

time of drought & famine, 10 million indians died in Bengal

========

Today all comodities have shot up

the tax is back breaking , 28% gst + 30% income tax is more than

the erstwhile muslim mughal rulers compared to which the present govt

promised to give better deal to lndians but alas .

========

They claim to be hindoo protectiionists but they have reduced

hindoo country Nepal to just like beggars

Nepal economy became very bad and its citizens are washing cars

or acting as guards in india , their daughters are made to serve as prostitutes

(u want a woman to fckk today, get a nepali)

AND lNDIANS ARE SOURCING KIDNEYS FROM POOR VILLAGERS FROM NEPAL(illegaly)

promising them 1000$ but the donor hardly gets 300$ if at all

=======

Jounalists r being killed , opposition is being threatened

hindoo goons are roaming streets intoxicated with loud music & noises

=======

In the DAV schools run by present affiliates of ruling party

girls as small as 8 yr old are getting raped every year

but news not getting reported, police not recording complaints

& everyone getting silenced by threats

========

Corruption : corrupt are being promoted

ppl in ministries use public sector for huge corruption

where giving contracts in lieu of nepotism has become a norm

& finance ministry auditors also giving clean chits in lieu of favors

of nepotism, free foreign visits etc.

Police tortures & kill thousands in custody in the country whose saints

promote non-violence

( u will find a Gandhi staring at u in police station but at the same time

someone will be getting beaten to death there in a shady corner of policestation

police uses worst torture to extract confessions, they beat & crush private parts, they

insert sticks in private parts sometimes dipped in chillies , ppl's private parts get ruptured)

--------------

Saints , holy men, hermits are being jailed & blamed

as the affiliates of govt only wants to allow a certain type of worship

(ask who killed Gandhi)

Hindooism is at war with itself

(whenever hindooism prevails , it becomes suicidal,

due to thousands of factions, it starts killing its own promoters)

WHY lNDIA BECAME ENSLAVED TO MUSLIMs?

about 1500 yrs years ago a fanatic named AdiSankracarya

incited & promoted elimination of factions of non-violent monks

and their followers as he labelled them all as atheists and assumed them

to be anti-God so the hindoos of that time carried out bloody extermination

which made rivers red with blood as bleeding bodies were thrown in

(holy) rivers, apparantly that created such bad karma that at the same time

evil incarnate Muhammed was born ,rose to power and

within 50 yrs became dominant who promoted brutal killings of

idol worshipers (hah ha hindoos ur karma on ur heads)

So islam travelled to lndia and enslaved entire lndia

hindoos were butchered (but they still dont realize the mistake)

Killing, jailing, torturing religious heads

causes very bad karma, the govt must stop this.

=========

Rather what a clean govt should look like :

Taxes should have been reduced, prices should have come down

ministries should act clean

people should feel safer

a policeman should stand every 300 metre on road protecting ppl

(instead of protecting VIPs only)

and police should be anwerable to ppl

web based feedback from ppl for police behavior should be there.