If Apple wants to compete with the iPhone SE, why is the world retail price higher than the US equal?

By Stephen Pate – For iPhone fans the new iPhone SE promises a new phone at the lowest price, at least for Americans. Outside of the USA, iPhone SE buyers will pay inflated prices that show more profit taking by Apple beyond just the currency exchange.

The 16 GB iPhone in the USA will sell for $399, the lowest price for any new Apple smartphone. According to the Google Currency Converter, that should make the price $521 Canadian. Sorry folks, Apple thinks you should pay $579 in Canada. That’s an 11% bump to Apple’s profit margin.

If you want the $499 64GB version of the iPhone SE, which is the recommended phone, that costs $709 in Canada, inflating the price by $57 or 9%.  The 16GB phone is hopelessly inadequate for storage of apps, music, photos and 4K videos.

Some companies try to keep their US and Canadian prices as close as possible to avoid cross-border conflicts. Other companies take advantage of trade barriers to inflate Canadian retail prices. Apple fans assume Apple is an ethical and fair company but it seems simply greedy.

Other countries pay more

In the UK, the iPhone SE is selling for £299 (before tax) which is equal to $427 US$.

In the Australia, the iPhone SE is selling for $617 (before tax), equivalent to $469 US$.

Times of India is reporting the iPhone SE will cost 39,000 Rupees which is a big bump from 30,000 Rs as expected.

Apple may be taking a price-what-the-market-will-bear strategy in each market. However, it would seem unlikely to charge more than necessary in the emerging Indian market which is supposed to a target along with China for the lower priced iPhone.

One thing I can say for sure, the best way to get the iPhone SE at $399 will be to buy it in the United States. However, the US version may not be compatible with world telecom standards.

Despite the price difference, I expect the iPhone SE to be a big seller for Apple. It’s the lowest priced iPhone with almost same specs with the iPhone 6s.

The iPhone SE is available for pre-order from Apple on March 24th for delivery on March 31st, 2016.