Apple Gets Aggressive in Brazil

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Brazil is No. 2 on Apple's (NASDAQ: AAPL  ) BRIC priority list. CEO Tim Cook made that much clear late last year, saying the country is the next biggest opportunity behind China out of those emerging markets. While Cook didn't "envision" Apple opening retail stores in Brazil anytime soon, the company has already begun hiring for retail positions, which suggests that Brazilian Apple Stores may not be too far off.

In the meantime, another challenge that Apple has historically faced in Brazil is that carriers don't subsidize smartphones; the practice is considered an illegal tie-in sale. As investors know, unsubsidized iPhones are rather pricey, especially for consumers in emerging markets.

Well, the iPhone maker has now decided to get aggressive in Brazil by dropping the price of both the iPhone 4 and iPhone 4S. Apple has reduced retail iPhone pricing by 15% to 25%, depending on the model. The iPhone 4 saw its price fall from $741 to "just" $544, while the iPhone 4S now sits at the $840 price point, down from $989.

Installment payment plans are generally very popular in Brazil, and Apple also offers monthly plans to prospective buyers. Apple also offers a 10% discount to customers that willing to pay the full amount upfront.

When Cook spoke at the Goldman Sachs Technology and Internet Conference in February, he noted that Apple has been making numerous efforts recently to make its products more affordable. Apple supplier Foxconn has also been expanding in Brazil and is preparing to build its fifth facility. Producing iDevices locally can also help bring down costs since gadgets won't face hefty import taxes.

Apple has just begun taking India seriously with a major overhaul of operations, with expanded distribution, payment plans, and increased marketing. Brazil is a more promising BRIC country than India, so it's not surprising to see Apple put some more focus there now, too.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2342276, ~/Articles/ArticleHandler.aspx, 9/28/2016 6:49:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 4:00 PM
AAPL $113.09 Up +0.21 +0.19%
Apple CAPS Rating: ****
GS $162.89 Up +1.41 +0.87%
Goldman Sachs CAPS Rating: ***