Why is an iPhone more expensive from Apple

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It's a long story, so cutting to the quick, I am researching new iPhones, and to use the iPhone 13 128 GB (standard size) as an example, in the UK, from Apple it is £599.00, form Curry's, Argos and Amazon it is £499.00. I have looked at the specifications and they all look the same, yet almost 17% cheaper, to add to this I can get a discount for ex-service from Curry's of 8%, as opposed to 2% from Apple.
 

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Apple prices are what they are, they do not control what other vendors want to sell their products for. So if others want to provide bigger discounts and all that, they certainly can.

Costco, in the US, tends to sell Apple devices for a bit cheaper than Apple for off-the-shelf stuff. That's a benefit that Costco is availing to their members, how they are covering the difference is there problem to solve.

An iPhone 13 is an iPhone 13 regardless of where your purchase it from. So go with the place that gets you the best discounts and cheapest price.
 

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Curry's, Argos and Amazon

I agree with Ashwin. Here in the UK, these large companies can afford the "discount" in the hope of (a) selling the iPhone and (b) convincing the public that accessories for the iPhone which they have in store, are "essential" and added to the discounted price of the iPhone, represent "good value" to the customer. They usually make a greater profit from these than from the iPhone.

Ian
 
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They also get a wholesale price from Apple because they buy in bulk. A pallet-load of iPhones is probably a good bit less expensive to buy, per unit, than the same number bought one at a time. So the stores then mark it up to a retail price that is lower than Apple's but still profitable to them. The same approach also applies to when cell providers offer "free" phones for a long-term contract. The price is spread over the life of the contract.
 
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The same approach also applies to when cell providers offer "free" phones for a long-term contract. The price is spread over the life of the contract.
No longer allowed in the UK, phone and tarries have to be priced separately.
 
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Apple prices are what they are,

Apple, when the sell directly, very rarely discount. And when they do, it usually isn't a big discount.

they do not control what other vendors want to sell their products for. So if others want to provide bigger discounts and all that, they certainly can.

In theory that's true, but in practice it isn't. New Apple products aren't really sold based on price.

At least in the U.S., Apple isn't allowed to tell retailers what to charge legally; but Apple does what's known as "protecting their market." They do that by only allowing a very limited number of retailers, and by making sure that there is little competition among their retailers in the various channels. So, for instance, Apple will only typically sell to one big box store (Best Buy), one warehouse chain (Costco), and extremely few online retailers (bhphotovideo in the U.S.; near as I can tell, Amazon only sells refurbished Apple products).

With not a lot of competition for the same product, a retailer doesn't have to give deep discounts to attract customers. Retailers understand this arrangement, and like it because it means that they will make a good profit on each item sold, and have high numbers of sales too. They also understand that if they (the retailers) discount things too deeply, that Apple will cut them loose.

That's why you won't see any huge discounts on Apple products, like you would for just about all the other brands of PC's. Those other brands will sell to just about any retailer, which causes competition and downward price pressure. Apple won't allow that. The upside is that it allows Apple to be able to afford to keep quality high. Other PC manufacturers are forced to cut costs to the bone, which impacts quality.

Sure, retailers like BestBuy and CostCo can sell Macs for like $100 or $150 off, which makes it look like they are discounting. (And that does make them a bit more attractive to purchase from than directly from Apple.) But that's all baked into their business model. They're not going to discount beyond that, and they aren't going to get into any kind of competition with any other retailers.

One other thing that Apple does. They legally aren't allowed to tell retailers what price they can sell things at. But they AREN'T prohibited from contracting with their retailers about what price their retailers can *advertise* their products for. (These are called MAP contracts. Minimum Advertised Price.) Apple sets prices that way. Most retailers won't bother to lower prices exceptionally in-store if they can't advertise those discounted prices to draw in customers.
 
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A few months ago I bought 2 new sealed in box iPhone 13s 128 GB factory unlocked with dual sims delivered at $507 each from a good ebay seller. They both came with 6 months left on the Apple warranty and guaranteed 100% batteries which means they were not old stock. One phone was replaced by Apple because of a internal microphone defect. The phone and all apps (except voice memos) otherwise worked perfectly except when I talked into the phone the other end could not hear me. I took it to the Genius Bar and they found the problem. 2 days later Apple gave me a new phone replacement. So that warranty was good.
That dealer had sold about 500 of those phones and I not know how he got them. That dealer had a 99% positive rating so I rolled the dice and saved $260 on 2 new phones.
 
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A few months ago I bought 2 new sealed in box iPhone 13s 128 GB factory unlocked with dual sims delivered at $507 each from a good ebay seller. ...
That dealer had sold about 500 of those phones and I not know how he got them.

Likely what was going on was that those phones were either "B-stock" (i.e. seconds that the factory had to get rid of at a discount because they weren't perfect), or the phones were "grey market goods" (i.e. an authorized retailer purchased more stock wholesale than they could sell, usually to get a good discount from the manufacturer, and then sold off the excess to third party retailers. This is referred to as "trans-shipping" in the industry.

Techically, trans-shipping is illegal, in that it usually goes against a contract not to do so, between the manufacturer and the authorized retailer. However, the manufacturer usually honors any warranty for the end customers and rarely takes action against anyone other than the authorized retailer.
 
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Randy B. Singer said:
Does Amazon sell current model year Macs in the UK? Do any of their pages say that they are an Apple Authorized Retailer?


I had a look, and found some interesting things.

https://www.amazon.co.uk/stores/page/2B251593-5F83-4440-93A3-9E28EF57741E

Amazon UK DOES have model year 2024 Macs, unlike Amazon US. But they also have Mac models going back as much as four years. That's unusual for Amazon US, and even Apple direct doesn't offer refurbished models going back that far.

Also, I don't see any mention of Amazon UK being an Apple Authorized Reseller. I could have missed it. But unless it says so, I'd have to guess that they aren't. I don't know the laws in the UK, so I don't know what the implications are for consumers in the UK. In the US, manufacturers wouldn't honor warranties on grey market good until there was a landmark court case that said that manufacturers are obligated to honor factory warranties on grey market goods. I don't know if the law is similar in the UK.
 
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I had a look, and found some interesting things.

Apple UK: All models

Amazon UK DOES have model year 2024 Macs, unlike Amazon US. But they also have Mac models going back as much as four years. That's unusual for Amazon US, and even Apple direct doesn't offer refurbished models going back that far.

Also, I don't see any mention of Amazon UK being an Apple Authorized Reseller. I could have missed it. But unless it says so, I'd have to guess that they aren't. I don't know the laws in the UK, so I don't know what the implications are for consumers in the UK. In the US, manufacturers wouldn't honor warranties on grey market good until there was a landmark court case that said that manufacturers are obligated to honor factory warranties on grey market goods. I don't know if the law is similar in the UK.
Interesting, and I don't know (or know how to find out) the answer, but with a link to the Apple Shop on that page, my assumption would be they are authorised.
 
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Interesting, and I don't know (or know how to find out) the answer, but with a link to the Apple Shop on that page, my assumption would be they are authorised.

It's Apple policy that all authorized retailers have the approved sticker displayed. As you can imagine, Apple is very strict about who can claim to be an authorized retailer, and holding those retailers to certain terms. (There have been several high profile legal actions over this here in the U.S.)

That said, I don't know if Apple has some sort of special deal with Amazon in the UK. If they did, I'd expect them to boast about it on Amazon's Web site, not make you guess.
 
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Apple has priced matched other retailers for me three times (2 computers & one iPad). The limit, if I remember correctly, was 10% price difference and dealer has to be "Apple Authorized".

Figuring out which retailers are authorized and which aren't can be a daunting challenge. It varies by product, or so I was told.

An example is Micro Center for Apple computers. It sure looks like they are authorized on the web site and at the fancy store displays.

But Apple would not price match them, saying that they are not an authorized retailer. Where they get the brand new, current model Apple products they sell, I don't know.

Apple had no hesitation to price match Costco on computers or Target on an iPad.

Gee Whiz, even shopping's complicated these days!
Paul
 
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An example is Micro Center for Apple computers. It sure looks like they are authorized on the web site and at the fancy store displays.

But Apple would not price match them, saying that they are not an authorized retailer. Where they get the brand new, current model Apple products they sell, I don't know.

According to Micro Center, they are an Apple Authorized retailer:

tps://www.microcenter.om/site/brands/apple-showcase.aspx (outdated link removed)

"As an Apple Authorized Reseller, Micro Center is your source for amazing deals on a wide variety of Apple devices and accessories. "

It's hard for me to believe that Micro Center would say this if it wasn't true. Doing so if it wasn't true would almost assuredly lead to a nasty lawsuit that Micro Center wouldn't win. It would be utterly asinine of them to claim to be an Apple Authorized Retailer if it wasn't true.

They are also an Apple Authorized Repair station:

tps://www.microcenter.om/site/service/Apple-Repair.aspx (outdated link removed)

tps://community.microcenter.om/kb/articles/13-do-you-service-apple-items-at-micro-center (outdated link removed)
 
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According to Micro Center, they are an Apple Authorized retailer:

Apple Showcase | Micro Center (outdated link removed)

"As an Apple Authorized Reseller, Micro Center is your source for amazing deals on a wide variety of Apple devices and accessories. "

It's hard for me to believe that Micro Center would say this if it wasn't true. Doing so if it wasn't true would almost assuredly lead to a nasty lawsuit that Micro Center wouldn't win. It would be utterly asinine of them to claim to be an Apple Authorized Retailer if it wasn't true.

They are also an Apple Authorized Repair station:

Authorized Apple Repair Services - Micro Center (outdated link removed)

Do you service Apple items at Micro Center? - Micro Center (outdated link removed)
What you wrote about Micro Center, Randy, tends to make me think the person at Apple who wouldn't price match based on not being an authorized dealer was simply mistaken. Or, maybe back then Micro Center wasn't yet authorized. Thanks for posting this information. It's good to know.
Paul
 
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What you wrote about Micro Center, Randy, tends to make me think the person at Apple who wouldn't price match based on not being an authorized dealer was simply mistaken.

Or a liar. It wouldn't be the first time that I've heard of the Apple Store folks lying to users. But I guess that's just business.
 

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