iPhone 6 to launch in Israel Wednesday night
Over 200 people lined up to be first to get iPhone, with starting price 40% more expensive than US, most basic model to cost NIS 3,549.
Hundreds of Israelis flocked to be the first to buy the iPhone 6 in scenes reminiscent of the US. The iPhone 6 will be launched in Israel on Wednesday night at a starting price of NIS 3,549 in retail stores and cellular network providers, making the phone 40% more expensive than the starting price in the US.
People lined up from the afternoon hours at northern Tel Aviv's Ramat Aviv Mall for the launch, which includes both the iPhone 6 and iPhone 6 Plus. The phone will be more widely available at retail stores and various providers from the launch date because of the growing number of importers.
Amid reports the phone will be 40% more expensive in Israel, analysts say the price leaves a low profit margin for sellers, an affect caused by the rising value of the dollar in the past few days.
How is the price of the iPhone 6 in Israel determined?
Apple sells the iPhone 6 (16 gb) to all of its international marketers for $670 (NIS 2,500).
The phones arriving in Israel are charged with a 15% sales tax, which increases the price to NIS 2,785.
Another 18% value added tax raises the price to NIS 3,392. Afterwards, 3% is added to the price to cover conversion, security, and transportation costs leaving the price for the iPhone at NIS 3,490.
Finally, each importers profit (ranging from NIS 100-400) must also be considered in determining the final price.
Analysts predict the large profits from the iPhone 6 will come from sales from the more expensive models of the phone, such as the iPhone 6 Plus, accompanying sales of the phone at retail stores and cellular providers, and from the high data-plan usage of cellular network customers.
The launch of the iPhone 6 is expected to have high demand and cause long lines at retail stores and cellular network providers.
