Why iPhones are so Expensive in the Philippines?

For most Filipinos, buying a latest iPhones or Apple device in the Philippines is a major financial decision because of its high retail price.

Some are questioning, why the price of iPhones or other Apple products are so expensive in the Philippines compared to other markets?

We all know that Apple products are considered premium devices worldwide. There’s a lot of several factors that contributes to the higher retail prices especially in the Philippines.

Importation and taxes.

iPhones and Apple products will surely cost more in the Philippines after the collection of taxes and import-related charges. Since it does not manufactured locally, the devices must be imported from overseas and involves customs procedures, logistics expenses and government taxes.

Also, the 12% Value-Added Tax or VAT will be added in every iPhone or Apple product sold as government taxes that can increase the final retail price.

Exchange rate.

Since Apple sets their products prices in USD, a small changes in currency exchange rates will affect the pricing, especially for high-end devices such as the latest iPhone models.

When PHP weakens against the USD most distributors and retailers must pay more to import the same Apple products.

Shipping and Distribution.

The Philippines is an archipelago with thousands of islands. Before iPhones or Apple devices reaches a Filipino consumer, it travels through a lengthy supply chain such as :

• Transportation
• Warehousing
• Insurance
• Customs processing
• Distribution all add costs

[Moving products across different regions in the Philippines can be more expensive and complex.]

Is an iPhone worth the Price in the Philippines?

The answer is Yes or No, it depends on buyer’s needs. Some users value long software support, premium build quality, strong security and seamless integration with other Apple devices, an iPhone can provide excellent long-term value.

However, many Android smartphones nowadays offer competitive features at lower prices.