Why is the Nexus 5 so expensive in Pakistan? Here are the Reasons

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This month HSN had released the Nexus 5 at the same time with the rest of the world for the first time in Pakistan. However, we got major complains from our Customers that the price of the phone is very high considering the phone is very budget-friendly. Today I am writing this article so I can clarify the confusion of many people regarding the price of this phone.

The following question was the most common in our Comment Section this month:

“Its $350 on Google Play why are you charging such a high price?”

Now I will discuss some factors that are responsible for the high price of the Nexus 5 and other devices in Pakistan:

1.     Google Play does not Ship in Bulk:

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The first part is that Google Play might be charging $350 for the 16 GB Nexus 5 but it’s not that simple. Google Play ships only to a few addresses in the US and even here the ship at most two devices per address. Google Play do not sell devices in Bulk, so HSN and other stores import it from International Suppliers who demand more than the price at Google Play.

2.     Google Play is out Of Stock

Nexus 5 (16GB, Black) - Devices on Google Play

When the Nexus 5 was released at Google Play, in less than one hour the phone was out of stock.  The demand of the Nexus 5 was very high even before the release as almost the entire phone has been leaked by multiple sources. People were just waiting for the “BUY IT NOW” button to display.

3.     Dollar Rates

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Since, all major Items at HSN are imported from International Suppliers the dealing are mostly in US Dollars. As Dollar price increases the prices of Imported items increases as well.

 

4.     US and Pakistani Prices

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Many Customers complain that HSN Prices are subject to the International Market then why are the Prices not according the International retail price. For Instance if a phone is $400 then it should be priced at roughly 41000 PKR. The reason is that we cannot compare US and Pakistani Prices directly there are many kinds of expenses while importing Phones. Agent Fees, Customs, Shipping Charges are just starters there are even more expenses in the list. US Markets get these devices directly from the Manufacturers so they get them at low prices.

 

5.     Nexus 5 Demands

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As I previously mentioned Google Play went Out Of Stock for the Nexus 5 in less than an hour. As the demand increases the price also increases and this is not just a Pakistani Rule it applies internationally. For instance the Nexus 5 was priced at Best Buy for $450 and up to $700 at eBay.

 

So, here I discussed the basic reasons why the Nexus 5 was prices so high. But HSN always puts Customer Satisfaction over Prices and we have reduced the Price to 60000 PKR. The price will settle even more as time passes. If anyone still has any question, kindly leave a Comment in the DISQUS section.

 

To stay updated about the Nexus 5 keep visiting the Home Shopping Blog !

 

 

 

About Kashif Arain

Kashif is always well updated with all the happenings in the Gadget World. When not Blogging he can be found organizing events at his College or discussing various new gadgets with the HSN Tech Squad. You can follow him on Twitter @KashifArain9
  • Ammar Malik

    If all of those reasons you stated are true; how did you reduce the price to Rs. 60,000? I know you didn’t do it for ‘customer satisfaction’ as you stated, since you’re running a business and not selling things for loss is the number 1 priority.
    I’m just curious. For the first week or so the price is astronomical, then it’s suddenly like 10-15k off. You obviously paid very high to get these phones quickly, then how are you able to suddenly chop off 10k?

    • http://www.homeshopping.pk Sales Team HomeShopping.pk

      Ammar The stock came in Dubai market before we had to buy from ebay and get them which was obviously expensive but as large number of stock came to UAE market at much better prices we lowered it down the same day :)

  • Sachin Tendulkar

    Only reason 1 is valid. Amazon ships nexus 5 32GB from other resellers for $483, I know cause I bought mine. Dollar is at 108 so that makes 52 thousand the cost of the phone in the US(taxes arent applicable when u buy from Amazon, taxes are included). U are charging almost 20K on top only for shipping and importing it in Pakistan. U may offer the lowest price but it certainly isnt a bargain. Nexus 5 demand in Pakistan is less, nothing new added and also it wasnt out of stock. It recently went out of stock only for the black 16GB like 4 days ago.

    • Imran Ahmad

      Dear HSN, you ain’t a one time importer, its a business and a continuous process for HSN. So I feel no need to mention how taxes are refunded and commercial invoices are tackled (if really done through legal channel). Well, if IMPORTING cOST is the only factor then feel free for any advice regarding cost cutting on import items. Otherwise you can charge anything you like bcoz thts ur business.

  • Imran Ahmad

    Well, just for the reference..
    Nexus 7 => $270, @ HSN Rs 38K, so premium (or call it cost) = 31%
    Nexus 5 => $350, @ HSN Rs 59K, premium = 55%
    KYA YE KHULA TAZAAD NAHI? Even the phone covers less volume & space.
    For a rational buyer, the buying decision shouldn’t be triggered at more than Rs.50K.

    At a renowned UK store: (few product examples)
    Galaxy S3 i9300 => GBP285 (Rs.64K) , @ HSN = Rs.40K, (HSN sells @37% DISCOUNT)
    Galaxy S4 i9500 => GBP520 (Rs.90K) , @ HSN = Rs.60K (HSN sells @ 33% DISCOUNT)
    Nexus 5 (Google Play UK) => GBP300 (Rs.52K)
    Nexus 5 (Retail) => GBP350 (Rs.60K) , HSN = Rs.58K (WHERE IS DISCOUNT CORRELATION)

    At a renowned UAE online store,
    Galaxy S3 i9300 => AED1400 (Rs.40K) , @ HSN = Rs.40K,
    Galaxy S4 i9500 => AED2000 (Rs.58K) , @ HSN = Rs.60K

    Price factor in above 2 examples equate to 1.

    P.S. I’m not comparing the INT’L & LOCAL prices directly, rather trying to correlate them.

    • Ali Rizvi

      When you see the prices mentioned on the Google Store, you only see the prices without the shipping cost and taxes. Taxes and shipping combined cost around $40-50 so the $270 price tag you see for Nexus 7 would actually end up costing around $320.

      Apart from that, Nexus devices do not get launched in Pakistan officially and that is why their price can’t be compared to devices that get launched here by the manufacturer itself e.g S3/S4 by Samsung.

      There are many factors that lead to an increased price and we’re working really hard to keep our prices lower than our competitors.

      Have a nice day.

  • Khalid Khan

    U mean googles nt releasing this fone officially in pakistan unlike the nexus 4??

    Secondly r u importin it through 3rd party sources or wat??

    This phone has released in india a week be4 pak with a very reasonable price….