The iPhone 5 still has to launch in Brazil, but one thing is for sure: when it hits the shelves, it will be much more expensive than in other markets. If you need a proof of it, just look at the new Apple TV, which costs R$399 in Brazil - roughly $197 USD, or twice its selling price in the US.
This isn’t only about Apple products; we have already touched the subject several times, many articles are much more expensive in Brazil, especially electronics. Let’s now try to understand why.
The usual culprit: Taxes and inefficiencies
It’s impossible to talk about the prices of electronics without mentioning ‘Brazil cost‘ (‘Custo Brasil’, in Portuguese). According to Wikipedia, this expression refers to “increased operational costs associated with doing business with Brazil, making Brazilian goods more expensive compared to other countries.”
This applies to products that are manufactured locally, but also to imported goods, which suffer from the structural problems of this huge country. Here are some of the Brazilian challenges the World Economic Forum pointed out in its latest report on global competitiveness, where Brazil made it into the top 50 for the first time: