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Here is why an iPhone 5 will cost more in California

Posted: , by Nick T.

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Here is why an iPhone 5 will cost more in California
$199 on-contract – this is what the 16GB iPhone 5 will most likely cost once it is announced and put up for sale. However, that figure does not include sales tax, so the actual amount of money consumers will spend on an iPhone 5 will be noticeably higher, especially if they happen to live in California. That is because sales tax in the state is applied to the full retail price of the device, which would likely be well above $600, rather on its carrier subsidized price. 

What's more is that the law, which has been in effect since 1999, applies to smartphones advertised by carriers as "free". Therefore, some handsets that are supposed to set customers back nothing when purchased with a 2-year contract might actually cost them a significant amount of cash. Needless to say, consumers have been quite unhappy with all this, and even a bill has already been introduced asking to alter the law in consumers' favor, yet there are no hints indicating that the bill will be passed anytime soon.

Nevertheless, it is not hard to predict that the new iPhone will sell like hot cakes, as always. And just like you, we are also eager to see it unveiled officially today at the Apple press conference in San Francisco. Stay tuned folks! The event kicks off in just a few short hours, and we'll be reporting all about it.

source: CNET

36 Comments
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posted on 12 Sep 2012, 09:42 13

1. MikeG77 (Posts: 348; Member since: 24 Nov 2008)


So you would pay tax based on $600 and not $200???? That's probably the dumbest thing ive ever heard.

posted on 12 Sep 2012, 09:46 10

4. JC557 (Posts: 707; Member since: 07 Dec 2011)


It's California... of course most of the state is cash strapped... due to idiotic policies.

posted on 12 Sep 2012, 10:04 8

14. Droid_X_Doug (Posts: 5289; Member since: 22 Dec 2010)


Sales tax has been applied on the retail price of every phone since phones were sold in the state. The logic is that the carrier is contributing toward (subsidizing) the ultimate selling price, so the tax is applied to the ultimate sell price.

As far as the financial situation of the state, when you have a requirement for a 2/3s majority in both houses to pass a budget, you have a tyranny of the minority. Politics in Sacramento are more dysfunctional than they are in D.C.

posted on 12 Sep 2012, 13:21

36. Obdabeast (Posts: 41; Member since: 01 Jan 2012)


in mass (boston to you geographic morons ) the sales tax on the full price of the phone on every smartphone has been in effect and people buying the iphones are spending an extra $42 each phone if the Iphone 5 comes out with a higher retail price then that will increase.. have fun buying the new iphone ;)

posted on 12 Sep 2012, 09:59 1

9. cepcamba (Posts: 717; Member since: 27 Feb 2012)


That's why they figured: This is the place for Hollywood!

posted on 12 Sep 2012, 10:34 9

19. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


My GOD i just don't understand, what is so special and good about this phone and products, even SONY are way much better.

posted on 12 Sep 2012, 10:41

23. JoeBelfiore (banned) (Posts: 79; Member since: 03 Sep 2012)


go away if you hate it troll

posted on 12 Sep 2012, 12:36

34. Pings (Posts: 289; Member since: 19 Dec 2008)


I used to sell cell phones and I would have to explain this every time I would sell one.

posted on 12 Sep 2012, 09:46 6

3. dil2abu (Posts: 112; Member since: 09 Nov 2011)


It will cost more in India than california..

posted on 12 Sep 2012, 10:31 1

18. CharlieAtInfinity (Posts: 253; Member since: 10 Apr 2012)


maybe because people buy it there regardless of price?
I herd that Samsung S3 has absurd price-tag in India
how much iphone costs there without contract?

posted on 12 Sep 2012, 11:16 1

30. poikilo (Posts: 45; Member since: 07 Jun 2012)


About 1000$

posted on 12 Sep 2012, 13:06

35. dil2abu (Posts: 112; Member since: 09 Nov 2011)


Iphone 4S 16gb costs around Rs 45000 (820$)

posted on 12 Sep 2012, 09:47 12

6. GoodFella (Posts: 112; Member since: 18 Oct 2011)


What a stupid worthless article designed to get clicks just because it has to do with the iPhone. Of course we pay sales tax on the retail price, so you end up paying about $250.00 for the phone. It's been that way for years. I clicked the article because I thought there was some other indirect influence on the price... Friggin' stupid article. I'm ashamed I even opened this page.

It's not just the iPhone, it's every phone... Such a dumb article. Shoulda posted this article (without the iPhone) back in 1999.

posted on 12 Sep 2012, 09:52

8. dil2abu (Posts: 112; Member since: 09 Nov 2011)


I agree

posted on 12 Sep 2012, 09:59 5

11. PapaSmurf (Posts: 6658; Member since: 14 May 2012)


It's iPhone day. Expect useless articles every hour.

posted on 12 Sep 2012, 10:45 1

25. moofoodooloo (Posts: 137; Member since: 04 Jan 2011)


and useless comments every five minutes.

posted on 12 Sep 2012, 10:00

12. MikeG77 (Posts: 348; Member since: 24 Nov 2008)


"sales tax in the state is applied to the full retail price of the device, which would likely be well above $600, rather on its carrier subsidized price"

No you pay tax on the Full retail not the subsidized price and your correct its for all phones.

posted on 12 Sep 2012, 10:02

13. cepcamba (Posts: 717; Member since: 27 Feb 2012)


Such hate!

Chillax dude. PA makes money from people who visit their site. Of course they create articles to lure people in.

But that doesn't give us the right to say an article is dumb or worthless. If you don't like it then ignore it. I thought you were a GoodFella.

posted on 12 Sep 2012, 10:06 3

15. GoodFella (Posts: 112; Member since: 18 Oct 2011)


Apparently you missed the movie.

posted on 12 Sep 2012, 10:59

28. cepcamba (Posts: 717; Member since: 27 Feb 2012)


Errr... my usage of GoodFella was literal.

posted on 12 Sep 2012, 10:37 1

20. NexusKoolaid (Posts: 258; Member since: 24 Oct 2011)


@cepcamba - I see your point, but what do you think is worse, people just giving up and silently going away, or taking the time to inform the site about articles than one might not like to alert them that there may be a problem?

GoodFella's feedback was a little strong, I'll give you that, but in a way he's doing them (the site) a favor.

posted on 12 Sep 2012, 11:04

29. cepcamba (Posts: 717; Member since: 27 Feb 2012)


If you want to help improve the article you can do constructive criticism, not really necessary to throw words like dumb, stupid, and worthless.

I don't find the article to be dumb, stupid, or worthless. It's skewed to bring clicks yes, but definitely not dumb, stupid, or worthless.

posted on 12 Sep 2012, 10:09 1

16. itiswhatitis (Posts: 419; Member since: 23 Jan 2012)


My comment got moderated for stating the obvious!PA,nice job!

posted on 12 Sep 2012, 10:25 3

17. richardyarrell2011 (banned) (Posts: 510; Member since: 16 Mar 2011)


Boy what a waste. Watch all the uneducated simpleton's gather who have no knowledge of technology to purchase another useless iphone. Wow late to 4g, late to real maps, late to navigation, late to true technology. Samsung rules this space...

posted on 12 Sep 2012, 10:41 2

24. good2great (Posts: 1036; Member since: 22 Feb 2012)


so everyone thats smart should have a samsung android device? hahaha come on man...

how come we class cell phones but not the cars we drive? what is it about a freakin android phone that makes you so superior than people who own an iphone?

"uneducated simpleton's gather...to purchase another useless iphone" very ignorant of you sir...

-1

posted on 12 Sep 2012, 10:47

26. moofoodooloo (Posts: 137; Member since: 04 Jan 2011)


It's ignorant, idiotic posts like that making android users look like such classy, well thought people.

posted on 12 Sep 2012, 10:40

21. kcombs (Posts: 245; Member since: 15 Dec 2010)


California has always been that way. Every time I do an upgrade for someone, they get upset when they have to pay $40 for a free phone. lol

posted on 12 Sep 2012, 10:40

22. clevername (Posts: 1407; Member since: 11 Jul 2008)


If you luv in California you can always go to Costco or Sam's club. You pay tax on the subsidized price there(the store picks up the rest of the tax for you).

posted on 12 Sep 2012, 10:48

27. FranksGT (Posts: 167; Member since: 29 Aug 2012)


Just buy it from a different state, or have someone else buy it and ship it to you.

posted on 12 Sep 2012, 11:32

31. DontHateOnS60 (Posts: 791; Member since: 20 Apr 2009)


This is California. Why are you all surprised? Look at half the laws they pass there. The state is in the red too, so they need all the money they can steal from people.

posted on 12 Sep 2012, 11:46

32. phatride4ever (Posts: 32; Member since: 01 Mar 2012)


This has been going on for a while in California.....It makes no sense

posted on 12 Sep 2012, 12:14 1

33. champ_vl (Posts: 44; Member since: 31 Aug 2012)


In my country (Romania) an iPhone 4S 16GB version is 1000$ and the 64GB version is 1150$ so please go on and complain how much the iPhone costs in America :-)

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