Apple International Price Differences

[Swad]

Check out this OSNews article about the issues with international prices and Apple computers.

 

http://www.osnews.com/story.php?news_id=13882

 

He brings up some good points, but he's way off base. Essentially he's claiming that Europeans (and others) are paying more for the same product, once you convert the currency. He's right, but in real life there is no conversion. From the article:

 

"All this prompted me to do some more comparisons of US prices to Europe prices. Remember that I corrected the following prices for VAT (BTW in Dutch), so all prices mentioned are without any sales tax. Prices were rounded up or down to whole euros or dollars, where applicable. Dutch prices were used. MacBook Pro 1.83Ghz: $1999 - EUR 1797

# Intel Mac Mini Core Solo: $599 - EUR 545

# Intel iMac 17": $1299 - EUR 1159

# OSX Tiger: $129 - EUR 104

# iLife '06: $79 - EUR 64

# iPod Nano 1GB: $149 - EUR 134

 

Now, let's convert all that to dollars:

# MacBook Pro 1.83Ghz: $1999 - $2166 [+8.3%]

# Intel Mac Mini Core Solo: $599 - $657 [+9.7%]

# Intel iMac 17": $1299 - $1397 [+7.5%]

# OSX Tiger: $129 - $125 [-3.1%]

# iLife '06: $79 - $77 [-2.5%]

# iPod Nano 1GB: $149 - $161 [+8.0%] "

 

 

Now I'm studying in Europe this semester so I feel I can talk about this. What he's forgetting is that EUR 1797 is in his own currency! Of course it's going to be more expensive when you covert it to dollars since the dollar is so low right now.

 

It's killing me to live in Britain. It costs me 1.75 (roughly) to buy one pound. If the dollar and pound were equal, I wouldn't notice any difference since the cost of living is roughly the same - I can get a meal at McDonalds for about 4 pounds where it would cost about 4 dollars in America.

 

See what I'm getting at? He's neglecting his cost of living. 1797 Euro is fair price since all he deals with is the Euro (VAT is another story however). He shouldn't even consider the American price since it's a different currency. His McDonalds costs 4 Euro too.

 

EDIT: Does the EU require a certain length of support with products too? Isn't it like a mandated 2 years or something?

[DrJägermeister]

EDIT: Does the EU require a certain length of support with products too? Isn't it like a mandated 2 years or something?

In Germany they have to give 2 years warranty due to the laws, but the Intel Mac-mini is still to expensive (639€->765$ with taxes) just for only 1 year more warranty.

How many does it cost realy in a store in the US with taxes (599$ without taxes)?

[Swad]

Yeah, it's 599, but with taxes I'd say it'll be 650 or more, depending on where you're at.

[Bug]

Yeah, its ~$651 with tax in NYC... 8.75% if I remember right...

[DrJägermeister]

Yeah, its ~$651 with tax in NYC... 8.75% if I remember right...

That's about 540€, there's 100€ (120$) difference for a customer between NYC and Germany for the Intel Mac Mini Core Solo.

[sHARD>>]

Things in Europe cost more, so it's easy and fair to raise your market prices. As far as calls for 'unfair' go, even the dang Girl Scouts adjust prices for different locations.

[Metrogirl]

I've long been used to high prices in Europe for stuff you can get in the US much cheaper. It's true that if it costs a dollar in the US it costs a pound in the UK. Sometimes they justify it by claiming they need more regulatory testing or a more robust 240v power unit or something but that's really a feeble excuse these days and the PSU argument is nonsense with the Mac which uses an international switch-mode unit anyway. The price thing is certainly unfair when you consider things like CDs which can cost twice the US price with no manufacturing justification. But it's what the market will support, and when you factor in the interest rate disparity, salary levels and so on it's probably not too unreasonable. You just do what you can to get around it. Nearly all the computer gear I have in the UK was purchased in the US - except keyboards - I actually buy my keyboards in the UK because I have never completely got the hang of the US variant!

[cyrana]

Metrogirl is right. If you people in the EU think you have it bad...Britain is worse. Even if you factor in the VAT a lot of stuff still costs way too much more (for computer electronics and the such). All the stuff my fiance owns was purchased here and brought over (again with the exception of a keyboard).

 

It does come down to what the power of each pound/euro/dollar is in the country the products are being bought in, of course. Britain still gets less bang for the 'buck', so to speak, on electronics.

[macgirl]

HA HA if you think Brits have it bad, Mexico is worse.

 

An example the simpliest iBook, in US Apple Store $999, in Mexico $13,999 pesos ($1324.51 equivalent dollars), thats 32.58 % more, and we do not have one more year of warranty. All because inport taxes, local taxes, tea taxes, pay another tax, one more tax.

[Swad]

The only difference I see is that for a british person, paying £299 pounds (sorry, don't have the figure on my keyboard, thank God!!! Brit keyboards are so messed up. @ should always be on the #2 key... ) for an ipod (sans VAT) is just like it is for paying $299 in the US.

 

So even though it seems expensive when you convert it, in real life terms there's not much difference. Or am I missing something?

 

Also, though, Apple has to figure in currency changes - the Euro could overnight (or gradually) drop to where it was for a long time: 80 cents on the Dollar. Apple has to figure those things in when they set prices, since I doubt they'd jack up the price when the Euro drops.

Edited March 7, 2006 by Hagar

[larna]

Just to add some info...

 

In Croatia iMac Intel Core Duo 20" costs $2720. That is the price including all taxes and whatsoever.

 

And for the sake of the comparison, my income is $1000 per month, and that is considered as not so bad, here, in Croatia.

 

Go figure.

[Ouch]

OK so i guess the best way to make a comparison would be calculate the cost of a mac as a factor of average annual salary for the country not including goverment taxes.

[Metrogirl]

I remember one of my Economics lecturers saying that the way to really compare prices is not in terms of cash, but in Mars Bars (that's a common chocolate bar in Europe). It works like this:

 

In 1950 you could buy a certain number of Mars Bars for an hour's wages. In 2006 you can buy exactly the same number of Mars Bars for an hour's work. This holds true for any date you care to mention. And if it costs the equivalent of 100 Mars Bars in England to buy a product, it will cost the same number of Mars Bars in France, or Germany, or Italy and so on. It's uncannily consistent.

 

I don't think Mars Bars are available in the US. Snickers Bars are, and they're found pretty well everywhere I've been in the world. So if anyone wants to do the maths and calculate how many Snickers Bars equal a Mac, you'd probably find that it's much the same in any country. Sort of knocks the whole exchange rate/national wage/inflation/cost of living thing down to size, doesn't it?

[kikos]

Thanks to the part of the U.S. Constitution dealing with inter-state commerce, it is often possible to buy things without paying tax. Right now, paying tax on out of state goods is basically on an "honor system." Congress is working on "fixing" this problem, however.

[johnniecarcinogen]

I remember one of my Economics lecturers saying that the way to really compare prices is not in terms of cash, but in Mars Bars (that's a common chocolate bar in Europe). It works like this:

 

In 1950 you could buy a certain number of Mars Bars for an hour's wages. In 2006 you can buy exactly the same number of Mars Bars for an hour's work. This holds true for any date you care to mention. And if it costs the equivalent of 100 Mars Bars in England to buy a product, it will cost the same number of Mars Bars in France, or Germany, or Italy and so on. It's uncannily consistent.

 

I don't think Mars Bars are available in the US. Snickers Bars are, and they're found pretty well everywhere I've been in the world. So if anyone wants to do the maths and calculate how many Snickers Bars equal a Mac, you'd probably find that it's much the same in any country. Sort of knocks the whole exchange rate/national wage/inflation/cost of living thing down to size, doesn't it?

 

Actually Mars are in the US too but just not that prevelent... Mars corporation makes Snickers, M&M's etc. Come to think of it I can't remember the last time i saw one but I saw a Zero the other day which is a white chocolate Mars bar right? Ok i'm rambling.

 

In Economics classes in the US we use the Big Mac Index.

[DS]

HA HA if you think Brits have it bad, Mexico is worse.

 

An example the simpliest iBook, in US Apple Store $999, in Mexico $13,999 pesos ($1324.51 equivalent dollars), thats 32.58 % more, and we do not have one more year of warranty. All because inport taxes, local taxes, tea taxes, pay another tax, one more tax. :censored2:

 

 

hahah Yep, I feel bad for you guys. I'm in Mexico quite often (and am at the moment), and I always bring extra stuff to help out friends here.

 

I've been pretty lucky so far hauling laptops, ipods, cell phones etc, I haven't got the red light yet

 

Having a couple of laptops on you in Mexico is better than having gold lol

[cat_7]

Hi,

 

I believe the real issue here (referring to the first post in this thread) is not that the price I pay for a Mac is relative to the "standard of living" in any country, as I am sure Apple tries to get any much money for there products as they can.

 

The real issue is what Apple gets for the machine. So the Euro to Dollar conversion holds, as Apple receives more in Dollars from a customer in the EU that from a customer in the US.

 

If the price to "standard of living" ratio holds, this will also mean the price in Euro will increase big time when the Euro would loose value in relation to the Dollar.

 

They just do charge us Europeans more.

 

(btw: the Euro was introduced at around the same value as the Dollar, but was quickly afterwards valued higher, later went down to the mentioned 80 cents, and now, after being at around 1.30 US$, is back at the mentioned value. The exchange ratio does not reflect the standard of living in the EU versus the US, but is kept like this to let the countries using Euro or other overvalued currencies pay for the deficits in the US, which are partially caused by spending money on destructive actions)

 

Cat_7

[u1m2]

you think that is bad, in Turkey we pay european prices + vat, and usually they keep selling older models without price drops even after a month of upgrading the models. When 2.5 GHz dual G5's were sold for 3K in Europe, we paid 2.5K+VAT for dual 1.8 Models, see my point?

[macgirl]

hahah Yep, I feel bad for you guys. I'm in Mexico quite often (and am at the moment), and I always bring extra stuff to help out friends here.

 

I've been pretty lucky so far hauling laptops, ipods, cell phones etc, I haven't got the red light yet

 

Having a couple of laptops on you in Mexico is better than having gold lol

Fortunately laptops an cell phones are permited even without paying taxes because they are "business tools for travellers", and even if you pay taxes for those they still cheaper, also fortunately Apple Warranty is valid on *books, but not for the desktops, but not all companies make valid the Warranty if you buy it out of Mexico.

 

We can order on some US Online Stores, they ship to Mexico, or we can use some services that ships orders from the US to Mexico, they have warehouses in the borderline so we can ship to them an then they ship to us with the taxes included in the price, but I get very angry when customs wants taxes even for the shipping fare, that's stupid.