The (high) cost of things in Brazil

The Samsung Galaxy Pad, photographed by steffenz via Flickr

Electronics, cars and several other products are consistently more expensive in Brazil than in the Northern Hemisphere. I don’t fully understand the phenomenon – I suppose it is related to overtaxing and also because the luxury products market is still limited in the country. I would love to hear your speculations about this.

The Expat American Living in Brazil blog has been doing an interesting job exposing these discrepancies. A few days ago it pointed out that the Samsung Galaxy Pad, that was launched in the Brazilian market before its main competitor, the IPad, costs R$ 2,280 (or US$ 1,333 or € 968). Here in the US, the Samsung Galaxy price fluctuates between US$ 400 and US$ 600.

Click the following links to check the price tag of several products in Brazil:

2 thoughts on “The (high) cost of things in Brazil”

  1. Thought you’d find this interesting, Regina: http://images.comsec.com.au/newsresearch/articles/global%20comparisons.pdf

    It’s a comparison of iPod prices around the world. Turns out Brazil is by and far one of the most expensive – you’d have to pay $330 for a spankin’ new iPod. In Canada by comparison it’s only $162.

    I’ve been railing for a long time about how Brazil really needs to cut down on their import tariffs. Two reasons – first, Brazil is a bustling nation and growing all the time, and computers/Internet are one of the greatest tools for people to grow and be a part of a larger international community. And second, if Brazilians are paying twice as much for their electronics on half the salary, and are on payment plans, then it’ll become a nation of debt-payers just like the United States. That’s not good.

  2. Thanks for the link, Keith. It is a great addition to this post. I see your point, but how to explain the much higher price of products made in Brazil, such as cars? Is the local industry much less efficient or subjected to higher taxes? I wish I had a deeper economical knowledge to understand that.

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