iPhone Sales Slumping, Is This Why They Are So Expensive?

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The iPhone is arguably the most popular phone in the world. While it has yet to catch on famously in Kenya and Africa, in other areas of the world, it is ubiquitous and in vogue. One of the primary reasons why it is not the most popular phone in Kenya and Africa is the steep cost. While most smartphones range between 10,000 to 20,000Kshs, an iPhone may set you back 50,000Kshs and above. According to an article by CNN, iPhones are just as expensive in other parts of the world.

The cost of an iPhone varies in different countries due to the different import taxes and levies which are imposed and how the local currency compares to the US Dollar. The iPhone 6S is cheapest in Canada where it retails for $636.18 and the most expensive in Turkey where it goes for $1029.41. The same device is even more expensive in Kenya. On www.kaymu.co.ke, an iPhone 6S 64GB device is going for 115,000Kshs which amounts to $1124.69. The same device is much cheaper in South Africa where it retails at around 84, 860Ksh ($829.54).

Import taxes and levies aside, another factor that may contribute to the steep price of iPhones is the total cost to build an iPhone which is broken down as follows:

Item Cost To Build
Screen $42.50
Battery $3.50
Cameras $19
Processors $58.50
Speaker $7.50
Casing $28
Other Costs $86
Total $245
RETAIL $649

 

Reports have abounded that iPhone sales are dropping and while Apple had a record breaking year in 2015, the CEO Tim Cook reports that the iPhone sales may drop even further. Could the steep prices and changing device features be contributing to the fall in sales? Follow here and here in detail.

 

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