4 ms·
Weak currency plus up to 78% importing tax on some types of products. When I worked at <big hardware company> in Brazil, our math was to multiply the user price
by danrocks 4y ago
Weak currency plus up to 78% importing tax on some types of products. When I worked at <big hardware company> in Brazil, our math was to multiply the user price in USD by 3.7x to establish the price in BRL.
iPhone: $800
iPhone in Brazil: $3000
Now with the currency in the toilet and companies "manufacturing" in Brazil (basically just assembling ready-made kits shipped from China) the multiplier is no longer valid, but still, an iPhone 14 basic model is $1461.
For purchase parity calculations: $1461 is about 7 minimum wages in BRL. If that held for the US, an iPhone here would cost some $7500.
Harsh.
When the currency was strong, it was even worse. When I moved back to BR in 2011, BRLUSD was something like 0.9 (strong BRL), and a VW Jetta cost around USD 45000.
Harsh.