Want to Buy an iPhone in Israel? Be Ready to Cough Up the Cash

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How much is Apple charging retailers for its iPhone 5s in Israel? TheMarker obtained a copy of Apple Israel’s official list prices, which are the prices paid by the big cellular companies, the only parties entitled to buy phones directly from Apple Israel.

An iPhone 5s with 16GB memory is listed by Apple Israel for 3,070 shekels ($877) including VAT, and is sold by cheaper retailers, including Home Cellular Center, for 3,600 shekels ($1,029). iDigital, Apple’s official representative in Israel, sells them for 3,650 shekels.

Even iDigital has to buy its phone from one of the big mobile operators – Cellcom, Partner, HOT Mobile and Pelephone – which are entitled to charge iDigital and other retailers a 5 percent commission on the phone’s list price.

The 32GB memory iPhone 5s has a list price to wholesalers of 3,545 shekels, and is sold by iDigital for 4,200 shekels.

This means that for every iPhone 5s sold by the cell phone companies nets them 550 to 700 shekels. Once you subtract VAT and the companies’ costs, it’s likely that they’re making a tidy 200-300 shekel profit on each phone.

As a point of comparison, U.S. consumers can buy the 16GB 5s for $124.99 from Best Buy, if they agree to extend their cellular contract by another two years. That's seven times more than the price for the same phone listed by Apple Israe.

Customers shop in an Apple store in Hong Kong on December 25, 2013.Credit: AFP
Israelis love their iPhones, but pay too much for them.Credit: AP

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