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.
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Photo: Yaron Brenner
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.
Photo: Yaron Brenner
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.