Can Apple Find Fortune In Brazil?
While the company had some initial troubles launching its products in Brazil, particularly because of a trademark dispute over the “iPhone,” it seems those problemss are being cleared away, and Apple has been making things work for it down south.
In one of its latest moves to get business flowing, the company has reduced the prices for its older phone models, the iPhone 4 and iPhone 4S. Both devices have received a discount of R$ 400, or about $198. The discount is not temporary either, but rather the new starting prices for the devices.
Despite being a foreign market, the iPhone prices in Brazil are actually higher than those in the U.S. The Brazilian iPhone 4 now costs about $544 for the 8GB model and the 4S runs about $840 for a 16GB model, compared to unlocked and unsubsidized models in the U.S., which are priced at $450 and $549, respectively. However, the smartphones can be purchased on a monthly plan. The iPhone 5 is also on sale, but not at a discount.
While the rationale behind Apple’s desire to expand business in Brazil is simple — the country boasts a large and growing market — there may be more troubling reasons behind the effort.
Apple’s devices have been available for quite a few years in the U.S. and Europe, and it has had a strong share of the market. But the iPhone may be faced with too much pressure from competing manufacturers, and the company may have over-saturated the market as well. If everyone has an iPhone already, they may not buy new ones as quickly, which could lead to market stagnation in those regions and make Apple’s press in growing markets all the more vital for the company.
Don’t Miss: Patent Trial: Has Apple Lost an Edge on Samsung?