The Apple iPhone Blues
- Jun 14, 2008
- Category: Apple, Gadgets & Toys, Technology

The Apple World Wide Developers Conference for 2008 has been and gone. I didn’t write about it since I figured it already had a great deal of coverage from sites like MacRumors, Engadget and MacTalk. Although the event itself has passed, the iPhone 3G is still a hot topic everywhere, especially over here in Australia where it’s finally getting its first national release. Apple geeks all over the country were jumping for joy, particularly when it came to the new prices. US$199 for the 8GB iPhone and US$299 for the 16GB version definitely sound like attractive prices, but I think the nation celebrated just a wee bit too early.
As it has always been, we pay what has become known as ‘Apple Tax’ for all Apple products here in Australia. There is a huge markup in price compared to the cost of the exact same items in the United States. For example, the base spec MacBook Pro sold in the US costs AU$2,129 for us Aussies at the current exchange rate (US dollar 0.51% of the Aussie dollar). However, buying the MacBook Pro in Australia will actually cost AU$2,699.
Sure, there’s all sorts of reasons for the markup, including importation costs, marketing, differences in buying habits, and all the rest of it. Aussie Apple users are used to this. It’s nothing new. So why is it, then, that many Aussies are so excited about the ‘new’ low iPhone price, when it’s really not going to be the case?
In the US, iPhone users must sign their life away sign up to a 24-month contract, as well as buy the phone for $199 or $299. It’s how phone sales are most commonly done over there. Whilst it is a similar story in Australia, we tend to have more phones that are sold outright, or packaged with pre-paid.
Optus and Vodafone will be the providers for the iPhone in Australia, but as yet, there is no information on pricing for Australia. Both companies have announced that they will also be offering the iPhone for pre-paid customers, so that is something at least. However, many of us are starting to speculate that the iPhone won’t be anywhere near the low price that Steve Jobs announced during the keynote; at least not without forking out big-time per month (upwards of AU$80 a month). Those of us who wish to purchase the iPhone on pre-paid instead of a contract should probably expect prices to be between $500 to $1000 depending on the version, and I’d be inclined to think they’d be locked to the carrier’s network, as well.
Now if only Optus and Vodafone would hurry up and release pricing information so that us Aussies can make an informed decision before July 11th when they’re released. If you ask me, I think both companies are holding out to see which one bites first, so that the other can undercut them.



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