US unlock iphone 5 =649 , CANADA unlocked iphone 5 = 699 Why is da US version cheaper

[student13]

Why is the us iPhone 5 (unlocked) cheaper the Canadian iPhone 5 unlocked.

US unlocked price= 699
Canadian unloced price= 649?


Why is the us unlocked version 50 $ cheaper?

[trevor]

Shipping costs?

Import duties?

Worries about changes in the exchange rate? (Currently the exchange rate is pretty near 1:1, but that obviously changes over time.)

An unreasonable upcharge because the sellers can?

Trevor

[anthlover]

While a bit of a Tangent to your question I will point out that the Verizon Locked Iphone 5 is supposedly unlocked on GSM. Not sure if that is true in Canada also. This presents an interesting option. The contracting breaking free with Verizon plus the regular out of pocket costs is I believe actually a little cheaper them buying an unlocked GSM Only iPhone while allowing you to use the phone with Either Verizon on any GSM carrier.

[sojourner]

I'm betting is it's the exchange rate.

[acme.mail.order]

1 CAD = 1.01 USD. It's not the exchange rate.

[sojourner]

Right you are. I was thinking that the CAD must have been higher earlier in the year, but a quick check reveals that the 52-week high has been ~1.04.

[onceagain]

The Canadian govt probably enforces "consumer rights" or "employee rights" that raise the cost of doing business there (relative to the US). Companies tend not to simply eat these costs, they pass them right along to customers. So, next time you cheer for these "rights" - remember they do have a cost.

[student13]

What "rights" do the Canadian version of teh phone have the teh US version does not?

[student13]

same thing with cars, only since customers in Canada have been wising up , car companies have been lowering costs, while trying to saying oh we sell more in the us that is why its cheaper. That is BS, I am sure that the Apple store in Toronto at Eaton's center sells more iphones than the entire state of Montana, Ohio and some other dinky state combined.

[onceagain]

Quote: Originally Posted by student13 What "rights" do the Canadian version of teh phone have the teh US version does not?

I was talking about the people and the business environment, not the phones.

For example - suppose I have a product, let's call it, the pPhone, and I sell it in my home country for $500/each.

Now let's suppose that some foreign country, has certain requirements that affect the cost of doing business in that country. Let's say that, compared with my home country, it requires employers to pay into health care plans and retirement plans, sick leave, personal leave and provide other benefits to its employees. Let's also suppose that it requires companies to provide 2-year warranties (as the EU does), and has other requirements that drive up the cost of doing business in that country - as compare with my home country, which does not require any of these things (by the way, these things can be referred to as non-tarrif barriers).

Now, I, as a company, can EAT that additional cost, and sell my product in that country for the same price as my home country, OR I can pass that cost along to the customers, thereby keeping my profit per sale about the same. Which do you think that I, as company, prefer to do - esp. in a situation where supplies are constrained, and I can choose to market my phone in the countries where I can make the most profit?

[DeltaMac]

Quote: Originally Posted by student13 ... I am sure that the Apple store in Toronto at Eaton's center sells more iphones than the entire state of Montana, Ohio and some other dinky state combined.

I guess you forgot to check your "sure" facts!
The "entire state of Montana, Ohio (and ignoring "some other dinky state") is at least double the population of metro Toronto, even if you include Hamilton. You skewed your remarks by including Ohio - who I can imagine would not care to be characterized as a "dinky state"
And, interesting that you would include Montana, which has no Apple retail stores.

[onceagain]

Quote: Originally Posted by DeltaMac The "entire state of Montana, Ohio (and ignoring "some other dinky state") is at least double the population of metro Toronto, even if you include Hamilton. You skewed your remarks by including Ohio - who I can imagine would not care to be characterized as a "dinky state" And, interesting that you would include Montana, which has no Apple retail stores.

Having been to Montana, Ohio and Toronto - I'd certainly call Toronto the least dinky of the three (: