Here is why an iPhone 5 will cost more in California

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

Related phones

iPhone 5
  • Display 4.0" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A6, Dual-core, 1300 MHz
  • Storage 64 GB
  • Battery 1440 mAh(8h 3G talk time)

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36 Comments

1. MikeG77

Posts: 426; Member since: Nov 24, 2008

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

4. JC557

Posts: 1918; Member since: Dec 07, 2011

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

14. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 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.

36. Obdabeast

Posts: 41; Member since: Jan 01, 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 ;)

9. cepcamba

Posts: 717; Member since: Feb 27, 2012

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

19. TROLL

Posts: 4851; Member since: Apr 13, 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.

23. JoeBelfiore

Posts: 79; Member since: Sep 03, 2012

go away if you hate it troll

34. Pings

Posts: 304; Member since: Dec 19, 2008

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

3. dil2abu

Posts: 315; Member since: Nov 09, 2011

It will cost more in India than california..

18. CharlieAtInfinity

Posts: 253; Member since: Apr 10, 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?

30. poikilo

Posts: 49; Member since: Jun 07, 2012

About 1000$

35. dil2abu

Posts: 315; Member since: Nov 09, 2011

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

6. GoodFella

Posts: 112; Member since: Oct 18, 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.

8. dil2abu

Posts: 315; Member since: Nov 09, 2011

I agree

11. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

25. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

and useless comments every five minutes.

12. MikeG77

Posts: 426; Member since: Nov 24, 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.

13. cepcamba

Posts: 717; Member since: Feb 27, 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.

15. GoodFella

Posts: 112; Member since: Oct 18, 2011

Apparently you missed the movie.

28. cepcamba

Posts: 717; Member since: Feb 27, 2012

Errr... my usage of GoodFella was literal.

20. NexusKoolaid

Posts: 493; Member since: Oct 24, 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.

29. cepcamba

Posts: 717; Member since: Feb 27, 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.

16. itiswhatitis

Posts: 423; Member since: Jan 23, 2012

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

17. richardyarrell2011

Posts: 510; Member since: Mar 16, 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...

24. good2great

Posts: 1042; Member since: Feb 22, 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

26. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

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

21. kcombs

Posts: 275; Member since: Dec 15, 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

22. clevername

Posts: 1436; Member since: Jul 11, 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).

27. FranksGT

Posts: 167; Member since: Aug 29, 2012

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

31. DontHateOnS60

Posts: 872; Member since: Apr 20, 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.

* Some comments have been hidden, because they don't meet the discussions rules.

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