Update: Check out our iPhone 3G Review.
While everyone who’s interested in an iPhone 3G is frustrated by Globe’s pricing plans, it’s also surprising to learn that Globe’s postpaid plan is the 6th cheapest among 18 countries surveyed.
Based on Total Minimum Commitment (TMC) cost which computed how much a customer will have to spend upfront and during the entire contract, the 8GB iPhone 3G from Globe has a TMC of Php53,476 (iPhone 3G Plan 1599). Compare that to Japan with Php86,400 and Canada with Php97,920.
See the chart I made below for 18 countries:
Chart is based on CBC Radio Canada’ iPhone iNdex map here. Exchange rate at Php45:$1.
Of course, there are differences in the lock-in period, 3G usage (from 200MB per month to Unlimited), free voice minutes and SMS. All other countries limit 3G usage by bandwidth, unlike Globe’s time based charging. However, at 384kbps, the 40 hours could translate to 7GB of bandwidth.
A lot of people were also referring to the $199 price in the US with AT&T but forgot the 24-month contract and $69 MSF. That brings the TMC cost of the iPhone 3G in the US to Php83,160.
Belgium came in at #1 because MobiStar does not have any contract months locked-in to the iPhone. In essence, you can grab an iPhone 3G in Belgium for just Php30,555. With Globe, the contract-free price is Php33,087 + 12% VAT of Php4,512 or a total of Php37,599.
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Caitlin says:
last year me and my brother bought an iPhone 3G. it is a great phone with lots of functionality and great styling too.
ador says:
@Jon Limjap
that’s a lot of B$
iphone retails in the US for $200
here it’s sold for P30-40k
a netbook that retails $400 in the US
will be sold for P20k here
Is your stupidity assembled offshore with raw materials sourced from different countries before it eventually landed here?
ChrisToo says:
@jon, mabuhay ka, agree ako sa’yo,kung walang pambili, makuntento,lalo na yung last part, the best yung sinabi mo! sana tinagalog mo, para mas malinaw sa iba..
Abe Olandres says:
@Jon, couldn’t have explained it better. You hit the nail on the head with this one. ;)
Jon Limjap says:
Wow, talk about victim mentality at its finest.
Price adjustment vis-a-vis GDP is feasible only for products where raw materials are sourced locally, e.g., Coke, McDonalds, KFC, etc can be made cheaper because local suppliers do sell their products at a cheaper price.
However, Starbucks can’t do that, at least not as much. Why? Because the source of their coffee beans is the same all over the world. The only thing that they can source locally would be water, sugar and milk: all of which are only peripheral to their main product line.
Same banana with the iPhone. It all comes from China, and perhaps the only factor that can help cheapen it would be shipping costs. Do we know where an iPhone has gone before reaching the Philippines though? I’m sure it doesn’t get to here from China direct.
Software for the iPhone would also cost the same all over the world. Would you demand software developers to cheapen their products for you just because you live in the Philippines?
Besides, this is a luxury product. Stop bitching about not being able to afford it if you cant: it’s not for you. There are a billion things more important than an iPhone that you can spend on.
Jedd says:
@kim, by prepaid you mean contract-free right? Globe calls them Prepaid Kits, when you pay for the phone at ‘full’ unit price and don’t have to commit to regular monthly payments for years. You just buy phone minutes as you need them.
kim guanzon says:
@jedd, uhh, prepaid phones here in the US cost between $14 and under $100… i’ve never seen prepaid phones cost more than a $100… kasi if they did, no one would buy a prepaid phone except those who can’t qualify for a regular line (bad credit,no credit history, no social security and/or illegal immigrants).
Kali Kalache says:
Abe, wait until they see the price in Brazil….
sequoia says:
I agree that, in comparing world price differences, one should factor in purchasing price parity (PPP). However, that approach should be taken with a grain of salt, so to speak. PPP assumes many things, ceteris paribus – that commodities have the same manufacturing costs anywhere and that they have to be tradeable goods, to name a few.
The problem with goods such as the iPhone is that it caters to a niche market, often characterized by price discrimination, high demand, and low supply (again, to name a few. haha). In addition to this, the iPhone 3G is a relatively new product which means that prices are not yet in equilibrium. That is, of course, without even touching upon the benefits of Apple’s dominance based on intellectual property alone.
Am I making sense? What I’m trying to say that we can, being free individuals, compute and adjust for iPhone prices worldwide but it can only provide us with a snapshot of how hard we have to work for it compared to our other gadget salivating friends abroad.
Juneau21 says:
I will get my iPhone 3G from globe for only 10k+ plus the 1200 plan i already have for only 2 years
albert says:
on top of the expensive price of iphone here in canada, you have to add an extra $7.00 for your call display, $6.95 system access fee, and 11% tax for british columbia residents.
incoming and outgoing calls also have a fee of $0.30/ minute, and now network companies will be implementing extra charge for incoming text which is also $0.30/text.
if you are on a pay as you go plan (prepaid)and does not have a load, your phone is useless no incoming and outgoing calls can be made. iPhone on a prepaid plan here in vancouver will suck big time.
Jedd says:
A liter of Coke in the States cost something around $1.50 or P70. That is probably just the right price considering that Americans earn $8 minimum wage. But can you imagine if they sell soda at that price here in the Philippines?
This comparison of where the iPhone is much cheaper is not really that accurate because it doesn’t consider differences in markets.
I would be much more interested in comparing PREPAID/PLAN-FREE iPhone prices across countries because more or less it should only be taxes affecting the price. The rest is up to the vendor’s, ahem, greed? Hehe
See, prepaid iPhones cost $600 in the U.S, or P27,000. Here it’s P37,599. Since 12% of that is for VAT, Globe is only really charging us P33K. Still, that’s already a P6000 easy profit in there, assuming Globe is paying Apple P27K for each iPhone, which I don’t think they are.
I don’t know… maybe I’m missing something.
Let’s have the WorldWide Prepaid iPhone Price Chart.
rara says:
i saw you on bandila yuga!
Jomark Osabel says:
Naah…with that pricing I think i’ll have to go with the cheap Iphone as you have posted here http://www.yugatech.com/blog/mobile/chinas-iphone-is-pink-white/
carlos says:
I also agree with Jervis. I can live without an iphone for some time more, until it finally settles at the right price! Now, what kind of a marketing person will not consider the buying capacity of his/her target market when doing his marketing plan?
Harvey says:
If we factor in buying capacity, then everything in the Philippines is expensive.
Lyle, RN says:
I agree with Jervis. The buying capacity of the target market is definitely a factor.
Abe Olandres says:
@jervis – I don’t think Nokia, Samsung or any other mobile manufacturer does GDP Per Capita factored in when they price their high-end phones.
BrianB says:
Dapat sana iPhone 1st gen diba? Basta mura.
jervis says:
I think this price comparison will be much useful if the country’s earning rate is factored in.
kim guanzon says:
guess what… just unlocked my 3g… now i can downgrade my ATT plan and lose the data package and revert my ATT line to just a regular cell plan… then I can plug in my T-Mobile sim into my 3G and get unlimited data through my company’s blackberry plan… so I get exchange mail through an unlocked 3g iphone. (I unlocked it using the sim hack)
Ryan Yam says:
Most of the countries listed here generally belong to the list of 1st world countries. I think that the pricing for Asia esp. where people earn lower should be adjusted accordingly.
Let’s just wait and see until it gets released in other countries.