iPhone 4 cash price in SA

[robkowa]

Just got back from Vodacom today. Their cash prices for the iPhone 4 are R7836 (16GB) and R9261 (23GB). Haven't checked MTN yet.
What is it with South Africa? The corresponding prices in US, UK, Germany, are (today's exchange rate):

US (16GB): $750 (R5185) Amazon
US (32GB): $935 (R6473) Amazon

UK (16GB): £510 (R5628) Apple
UK (32GB): £612 (R6753) Apple

Germany (16GB): €629 (R5803) Apple
Germany (33GB): €739 (R6818) Apple

Notice the markup in the UK and Germany. But it's a few hundred Rand, not R2651 and R2788, respectively! Even if you argue that that includes customs duty and VAT, the difference is still too big. Now that the iPhone is available at MTN and independent dealers, as well, I would have thought that competition would exert a downward pressure on prices. But not so. It sure looks like a racket to rip off the South African consumer. Why isn't anyone importing these phones and selling them at a DECENT markup? ...
Or am I missing something.

Frustrated would-be iPhone buyer.

 

[kaisterkai]

The price is way too high.. I wonder if anyone is actually going to get something so expensive..

 

[solo7]

if they didn't charge the extra R2651 odd for buying it pre paid.. everyone would go pre paid and not take there contracts with extra silly charges.

 

[sp00ff]

Check www.cacell.co.za - they are slightly cheaper when it comes to the 32GB model.

 

[robkowa]

if they didn't charge the extra R2651 odd for buying it pre paid.. everyone would go pre paid and not take there contracts with extra silly charges.

But why do Telekom, O2, Orange, etc., all these other international operators not have to resort to this type of extortion? The argument would be the same for them.

 

[Boodah]

shipping, clearing, vat, insurance and greed... not necessarily in that order

 

[robkowa]

sure, I know that, especially the greed part. What I'm wondering is why the usual free market forces don't seem to work here: if all your competitors sell at 7836, and you could sell at 6500, and STILL make a profit, then you should, as lowering the price increases demand. Equilibrium price - it's all economics 101. My point is that something, someone, is artificially keeping the south african equilibrium price ridiculously high.

 

[Synaesthesia]

Total ripoff. You might as well get a contract. You can get them for R5500-6500 if you look for 2nd hand etc.

 

[robkowa]

Vodacom wouldn't give me a contract. Didn't pass credit vetting. Not because I'm a tsotsi, but (I imagine), because I'm not a South African citizen, and I'm here only on a 3-year temporary resident permit. Sigh....

 

[Reaper84]

Mtn quoted me R6571 for the 16gb. But they won't give me a micro sim. I'll have to cut my own. Call around and I'm sure you can get it cheaper. Maybe try mtn for a contract.

 

[ghoul]

You can find great deals on sites like gumtree

My advice in only buy sealed iphone 4's. Be very careful of iphones that have been opened. You could have endless problems if its been jailbroken, previously network locked or registered on apples website under the previous owners details

Dont know why more people dont pay cash for their phones? You can change as often as you like without the 2 year lock-in - plus the resale value of iphones are super.

http://capetown.gumtree.co.za/c-Stu...aled-Unlocked-Collect-only-W0QQAdIdZ254647727

 

[robkowa]

Thanks for the feedback, guys.
@ Reaper84: that was a damn good price. When I checked with MTN, they told me that they don't sell the phone for cash. Only contract. (this is both from MTN Direct and and the iStores in JHB). The best cash price for a new phone in Gauteng that I found was : R7299 from DigiCape. But guess what, they're out of stock, just like Vodacom. Grrrrrrr.
Other than that, there's the dodgy "Import XYZ" company based in PE, that promises you one for R4000 within 24h if you deposit the money into their account first. Yeah, right...
Well, back to using my old Nokia, then :-(

 

[[Quattro]]

What do you mean by "got back from Vodacom?"

You do know that the Vodashops are independent dealers and have their own prices.

 

[robkowa]

You're right. I should have said: got back from the Vodashop in Rosebank with the following quotes.... but they don't have stock, and they're overpriced anyway (7836). Just read that Verizon (their new carrier in the US) has a cash price of $649.99 for their customers. R4606 in today's Rands.... a R3230 markup. Shame on you guys. As I said, VAT, duty, transport costs, doesn't justify it. It's a price cartel.

 

[renierp]

My advice in only buy sealed iphone 4's. Be very careful of iphones that have been opened. You could have endless problems if its been jailbroken, previously network locked or registered on apples website under the previous owners details

You will have problems if it is network locked, yes (these can be avoided if you know what you are doing), but there is absolutely no harm in buying a jailbroken device. A fresh restore in iTunes will remove all traces of the jailbreak. It also has no effect on the hardware, it basically just opens iOS up so you can do more with the expensive toy you bought.

Sent from the MyBroadband iPhone App

 

[OMB]

sure, I know that, especially the greed part. What I'm wondering is why the usual free market forces don't seem to work here: if all your competitors sell at 7836, and you could sell at 6500, and STILL make a profit, then you should, as lowering the price increases demand. Equilibrium price - it's all economics 101. My point is that something, someone, is artificially keeping the south african equilibrium price ridiculously high.

it's got nothing to do with economics, it's called collusion and price fixing so they can all screw the consumer to the same degree, it happens in so many aspects of our market, just do a comparison on our car prices vs. overseas

 

[Reaper84]

I have a contract with mtn so I called them and they let you buy a iPhone through them and they "add" the phone to your account and then you make a payment into your account. Sounds complicated but I wwent in to my mtn branch and was out with a new prepaid iPhone 4 in 5 minutes. Just remember they won't give you a micro sim so you'll have to cut one yourself.


Sent from the MyBroadband iPhone App

 

[Zappers]

Why won't they give you a micro sim?? If you pay for a sim swop they have to give you the micro sim. There is no law that says they can't sell you a micro sim card!!!