Let’s cut to the chase here: The price of most products has NOTHING to do with the cost price, the exchange rate or the relative cost of alternatives (although if you want a good analysis of some of these see iPhonewezealnd’s iPhone 4 price estimate).   The product’s cost is irrelevant too (iPhone 4 estimated production cost found here, which they estimate to be US$188 or NZ $270 or so). It has EVERYTHING to do with what the customer will pay.

We already know the price of the 3Gs on launch in NZ:  NZ$1149 for 16GB and NZ$1349 for 32GB (although you can buy an 8GB 3Gs for $899 at the moment) .  Since the iPhone 4 comes in the same sizes (16/32GB), my simple estimate of the iPhone 4 price is the same – $1149 for the 16 GB and $1349 for the 32GB.

UPDATE 27th July 2010: The 16GB pricing has been released as $1099 ($50 cheaper than my prediction).  Still waiting on 32GB $.

Update 30th June 2010: 32GB now confirmed as $1299.   Looks like I was $50 out on that too :-)   Both are now available now from the Apple web site

Update 20 October 2011: The iPhone 4s is now out. My review for use in New Zealand is here.

Black and White Version: Price is determined the willingness of the consumer to pay far more than anything else.  Let’s see if I am right in this case.

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