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Do You Want To Know Why An iPhone Is Expensive?

Do you want to know why an iPhone cost so much?

One reason is because Apple is splashing the cash making daily business class pilgrimages to China, this is the very market that the Company claims is bring the Company down when it comes to iPhone sales.

According to United Airlines Apple purchases 50 business class tickets to Shanghai every day of the week and at around $3,600 a ticket one way this adds up to around A$280M when you also include flight to Hong Kong, Taiwan and London rounding out the four most popular destinations for Apple executives.

On top of this is the Apple private jet flights, according to Apple the use of private aircraft, it says, is “in the interest of security and efficiency based on [Apple’s] global profile and the highly visible nature of Mr. Cook’s role as CEO.”

Cook, Apple said, does not receive any tax reimbursement for personal use of the aircraft.

United Airlines has admitted that Apple’s spending makes it the airline’s largest global account.

A ticket for the 14-hour China journey normally costs at least A$3,600, Qantas by the way charges $8,196 for a flexi business class fare one way for a similar flight time.

The flights to Shanghai, however, make up 25 percent of Apple’s annual spending, and brings in big revenue to United every year.

Other popular destinations for Apple employees flying United on company expenses are South Korea, Singapore, Munich and Tokyo, with Beijing and Israel filling out the top 10. Australian destinations failed to make the top 10.

In comparison Facebook and Google — each spend over US$34 million per year with the airline.

United Airlines did not respond to a request for comment.

Apple is no stranger to high air travel bills. It previously made headlines after it was revealed that CEO Tim Cook is forced to fly private by Apple’s board.United Airlines has released a statement following the circulation of the tweet that showed Apple as its largest account, spending $150 million on flights every single year.

In a statement Kif Leswing at United Airlines said that the information was displayed as part of a (intended to be) private project that has since been discontinued.



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