Dubai’s biggest gadget demand is for iPhones. Whenever an iPhone launches in Dubai, it is in very high demand. iPhone prices in Dubai are buyer favorable and that is the main reason for the high iPhone demand in Dubai. Dubai is the most suitable country to buy electronics from. The good thing is that residents, as well as visitors, buy the iPhones at less price. In this article, we will discuss Why are iPhones Cheaper in Dubai.
iPhone prices in Dubai may be cheaper due to some factors such as lower taxes, currency exchange rates, market competition, and distribution costs.
You can check iPhone Prices here.
Why are iPhones Cheaper in Dubai?
The main reasons why iPhones are cheaper in Dubai:
Taxes
Taxation Policies are the main reason for the cheaper price of iPhones in Dubai, UAE. Here the tax rates applied by Dubai are so less as compared to other countries.
In Dubai, the standard VAT (Value Added Tax) is 5%. This means that whenever you purchase an iPhone in Dubai you’ll pay 5% on VAT tax.
If you are a tourist visitor to Dubai, you may be eligible for a VAT refund. Here are the following criteria:
- You must be a tourist in Dubai for less than 180 days.
- You must have purchased an iPhone for your personal use, not for resale.
- You must have the original receipt of the iPhone.
You can apply for a VAT refund at the airport. For this, you have to show your passport, the original receipt of the iPhone, and the VAT form.
How to Claim a VAT Refund for an iPhone in Dubai?
Here are the steps to claim your VAT refund:
- Purchase an iPhone from a retailer in Dubai.
- Take the original receipt.
- Fill out the VAT refund form.
- Show your passport, VAT refund form, and the original receipt of the iPhone at the airport when you are leaving Dubai.
- Once your claim is approved, the amount will be refunded within 5 business days.
Currency
The UAE dirham (AED) is currently weaker than the US dollar, which means that iPhones are relatively cheaper in Dubai when priced in USD.
For example, the iPhone 14 Pro is currently priced at $999 in the US, but only AED 4,299 in Dubai. Around 50% difference.
Reasons for Weaker AED in Dubai:
- The decline in oil prices – The UAE is the major oil exporter in the world. But in recent years, the global oil price has declined a lot due to which the economy of Dubai has been affected.
- The strength of the US dollar – The US dollar is getting stronger in recent years. There are many factors including Federal Reserve’s interest rate hikes.
- The increase in the UAE’s current account deficit – The UAE’s current account deficit has increased so much in recent years. The country has imported more goods and services than it has exported. It has also pressurized the UAE dirham (AED ).
Since currency exchange rates fluctuate, iPhone prices in Dubai may not always be as low as they are now. iPhone prices in Dubai will likely remain low due to the weaker AED.
Competition
The UAE smartphone market has a lot of competition. There are big players like Apple, Samsung, Huawei, and Xiaomi. As a result, the competition lowers the price as each company tries to break the competition to attract more customers.
There are also small retailers in Dubai ( UAE ) who offer more discounts as compared to large retailers to attract a larger number of customers.
Duty-free status
Another reason for the lower price of smartphones in the UAE smartphone market is that Dubai is a duty-free port. Duty-free port means areas with little to no tax in order to encourage economic activity.
Grey market
There is an active grey market for iPhones in Dubai, which means that unofficial sellers can offer discounted iPhones. This can happen for many reasons, like cheap goods by not paying import duties, low taxes, weak currency, etc.
However, there are some things to keep in mind when buying from the grey market. For instance, iPhones don’t come with Apple’s warranty and may not work on all networks.
Tourists
Many tourists visit Dubai to buy iPhones and bring them back home. So as a tourist attraction retailers offer iPhones at a lower price.
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FAQs
Is iPhone Cheap in Dubai?
Yes, iPhones are generally cheaper in Dubai than in many other countries. This is due to a number of factors, including low taxes, a weak currency, and a lot of competition in the smartphone market.
Is the iPhone Cheaper in the USA or Dubai?
In general, iPhones are cheaper in Dubai than in the USA. This is due to a number of factors, including lower taxes, a weaker currency, and more competition in the smartphone market.
Are iPhones in Dubai different?
There are no major differences between the iPhone in Dubai and the iPhone sold in the rest of the world. The iPhone in Dubai is the same in terms of hardware, software, and features. But there are a few small differences that you need to know before purchasing an iPhone in the UAE like Regional variations, Warranty, and Return policy.
Can I Use a USA iPhone in Dubai?
Yes, you can use a USA iPhone in Dubai. There are no restrictions on using iPhones from other countries in Dubai.
What is the Tax Rate on iPhones in Dubai?
The tax rate on iPhones in Dubai is 5%. This is the standard VAT (value-added tax) rate in the United Arab Emirates. There are no additional sales taxes or import duties on iPhones in Dubai.
Will Dubai iPhone work in India?
Yes, the Dubai iPhone can work in India. Since the iPhone is a global product, it can work in most countries.
Why are iPhones Cheaper in Dubai?
The iPhone is cheap in Dubai because of low taxes, a favorable currency exchange rate, and a grey market.
Is it OK to Buy an iPhone from Dubai?
Yes, it is safe to purchase an iPhone in Dubai UAE. However, you should purchase an iPhone from an Online store or a physical store. Do not buy an iPhone from street vendors as there is a chance that they will cheat you.
Is it better to Buy an iPhone in India or US?
If you are able to buy it from the US then it is good but you should check whether it is compatible with Indian networks or not.
How many iPhones I can Bring from the USA to India?
If you’re only bringing one iPhone in a sealed box, it won’t be a problem. But if you’re getting 3-4 phones, you’ll have to show receipts for what you bought and you might have to pay customs duty. So it’s best not to bring more than two phones when you’re flying from the US to India.
Conclusion
In the end, we can say why iPhones are cheaper in Dubai. Since the price is cheaper than in other countries, taxes are less, the currency of the UEA is weaker than the US dollar, competition is more, etc.
So if you are willing to buy an iPhone and planning to visit Dubai, So you can buy it from there.
Alot of good information on this blog, thanks!