Does anybody still believe that Mac prices in Europe are fair?

[Alessandro17]

Have a good look here:

 

http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore

 

and then here:

 

http://store.apple.com/Apple/WebObjects/irl/

 

As you can see the prices in Euro are the same as the prices in Dollars, in some cases even more expensive (Mac Pro)

 

Now check the Euro vs Dollar exchange rate somewhere:

 

http://www.x-rates.com/d/USD/EUR/graph120.html

 

http://investing.reuters.co.uk/news/articl...CORD-URGENT.XML

 

That clearly means that we Europeans are paying Macs 40% more than Americans!

 

I am not going to buy one, nothing could be more certain.

[bluedragon1971]

The prices on the Apple sites in Europe generally also include VAT or Sales tax, not to mention import taxes and duties, which are NOT included on the US site. It doesn't always make up all of the difference, bit it can and often does make up a large portion of it. For those in other countries that don't know, sales tax (our equivalent of VAT) in the US varies by state, and is generally between 5% and 10% on top of the price listed on the site. Of course, since Apple is an American company, we don't have to pay import taxes or duties, which people in other countries have to deal with.

[Alessandro17]

The prices on the Apple sites in Europe generally also include VAT or Sales tax, not to mention import taxes and duties, which are NOT included on the US site. It doesn't always make up all of the difference, bit it can and often does make up a large portion of it. For those in other countries that don't know, sales tax (our equivalent of VAT) in the US varies by state, and is generally between 5% and 10% on top of the price listed on the site. Of course, since Apple is an American company, we don't have to pay import taxes or duties, which people in other countries have to deal with.

 

This is exactly what I expected.

If I could import a (new) Mac Pro from the US, all I had to pay was VAT. There is no way that VAT amounts to 40% on top of the initial cost!

Do you need further proof? TigerDirect does ship to Europe. Even with shipping costs and VAT, I'd be (much) better off buying from them.

 

Besides, I am pretty sure that Apple, considering their high profit margin on hardware, could absorb at least half of VAT cost.

They have done just the opposite.

[A Nonny Moose]

No business in their right mind would absorb the cost of taxes in all their products.

[Alessandro17]

No business in their right mind would absorb the cost of taxes in all their products.

 

But business in their right mind do offer discounts in order to attract customers.

 

And certainly no honest business would take advantage of exchange rates and charge their customers 40% more.

[karmatose]

I hear you loud and clear on the terrible exchange. It's not as bad for me here in Canada, but if you see the other post I made here its fairly obvious that Apple is not aggressive at all with their exchange differences. Also, something to ponder, "everything" is shipped from China it seems. So, it imported into the USA as well. Technically shouldn't this level out the playing field a little bit?

[bluedragon1971]

This is exactly what I expected.If I could import a (new) Mac Pro from the US, all I had to pay was VAT. There is no way that VAT amounts to 40% on top of the initial cost!Do you need further proof? TigerDirect does ship to Europe. Even with shipping costs and VAT, I'd be (much) better off buying from them.Besides, I am pretty sure that Apple, considering their high profit margin on hardware, could absorb at least half of VAT cost.They have done just the opposite.

You still aren't listening. It's not just VAT making the difference, it's also import duties that your government charges on items coming from the US and other taxes that you might never even see. Also, I don't doubt that Apple charges European customers extra because of all of the extra RoHS certifications that they have to get to sell their items there. They have to make that money up somewhere, so why not charge the customers in the countries that demanded it in the first place?If you order your computer from TigerDirect, you won't be paying import duties to them, but I can just about guarantee you that you will have to pay them when you go to pick your computer up at your post office.

Also, something to ponder, "everything" is shipped from China it seems. So, it imported into the USA as well. Technically shouldn't this level out the playing field a little bit?

You don't seem to understand how import duties work. Since Apple is an American company, they do not have to pay import duties on their own products, even if they have them manufactured overseas. That's one of the big reasons that many American companies choose to have their products made in China or other Asian countries, the other being labor costs.

[Alessandro17]

Technically shouldn't this level out the playing field a little bit?

Indeed, but it is not happening.

You still aren't listening. It's not just VAT making the difference

No, it is you who isn't listening, because it is only VAT. I have bought from the US several times, and besides I know the law.

[Synaesthesia]

Apple computers are quite a bit more expensive here in South Africa too. And iPods, Apple TV, etc. The entire Apple range. It sucks.

[CLiDE FTW!!1]

Fortunately, being in Canada and all, I have about a 30 minute access from an American Apple store... so I don't have to pay the $300 more just to buy a computer in Canada

[Alessandro17]

Fortunately, being in Canada and all, I have about a 30 minute access from an American Apple store... so I don't have to pay the $300 more just to buy a computer in Canada

 

Lucky you. Probably I'd buy one if I could pay the American price.

[R2k.]

100$ < 100€

 

1 Euro = 1.4134 U.S. dollars

 

 

 

 

~R

[solaar]

I agree, Apple's prices at least in Eastern Europe and other parts of the world that can't be generally considered 'wealthy' are quite arbitrary and hard to understand.

 

HOWEVER in Western Europe and other highly industrialised countries, one big chunk to consider is the local salaries. I mentioned it before in another thread, I don't think Apple employees in the EU (west) would work for the same salary as their US counterparts if you apply the Euro/US$ exchange rate. What Europeans usually earn in Euros is the face value in US$ elsewhere - or even less. Making (and paying out) $2000 or Euros 2000 a month is quite a difference. Personnel costs are usually the biggest chunk in most European businesses.

 

 

I used to live in the US and I still visit regularly and still to this day it shocks me how many people NEED to go on two or even more jobs just to get by. In the EU, you would have half the population demonstrating in the streets if that ever becomes a common reality...

[Alessandro17]

HOWEVER in Western Europe and other highly industrialised countries, one big chunk to consider is the local salaries. I mentioned it before in another thread, I don't think Apple employees in the EU (west) would work for the same salary as their US counterparts if you apply the Euro/US$ exchange rate.

 

I believe that is only partly true, because I don't think Macs are built in Europe. OK, Apple will still have a few employees in the EU, but that shouldn't affect the end prices too much.

I won't even mention that most PCs with specs similar to the Macs cost a lot less in Europe.

[Zealot]

I know what you mean Alessandro , you see i live in southamerica and we get that same {censored} from apple , to buy an Apple product here is at least 30 percent more expensive than the U.S..

[Alessandro17]

I know what you mean Alessandro , you see i live in southamerica and we get that same {censored} from apple , to buy an Apple product here is at least 30 percent more expensive than the U.S..

 

And in your case it is even worse. Correct me if I am wrong, but I believe in South America there is a lot more poverty than in the US.

[Zealot]

In some countries there is a huge percentage of the population that is beneath the line of poverty ...so i get your point , and the distribution of the salaries its outrageous too. Here in Chile we are pretty good economicaly wise so we get alot of inmigrants because of the poverty there is in many of the southamerican countries

[Alessandro17]

Here in Chile we are pretty good economicaly wise so we get alot of inmigrants because of the poverty there is in many of the southamerican countries

 

I see. Latin America fascinates me, BTW.

[solaar]

I believe that is only partly true, because I don't think Macs are built in Europe. OK, Apple will still have a few employees in the EU, but that shouldn't affect the end prices too much.

I won't even mention that most PCs with specs similar to the Macs cost a lot less in Europe.

It may be only partly true. The thing is, AFAIK no Apple product is manufactured in any high salary country. Manufacturing is not the point I was trying to make. It's the sales and admin staff in the Apple shops in EU. And although there are probably comparatively less stores over here than in the US, I bet the fixed cost for rent, utilities, storage space etc and then the personnel costs are way higher in the EU as a total than in the US. I would estimate that financing a high street shop in the EU is about double of what it is in the US. (just think about how much 'wasteland' the American continent still has...)

 

I also hate the fact that we need to dish out more but only because Apple's finance people apparently didn't make any great effort to differenciate their calculations based on local national conditions.

[A Nonny Moose]

You're paying VAT and import taxes, aren't you?

[solaar]

You're paying VAT and import taxes, aren't you?

That amounts to about 20% average (in my country only 10%) - but not 40% or more ...

 

PS. although it sounds 'unfair' it's actually not fair to limit the price comparisons between the US and other countries to Apple alone. There are countless other products that are not US-made which have about the same pricing discrepancies. For instance the Japanese car I'm after costs 35% more in Europe than in the US although it's the exact same model (with a few differences due to local regulations). The same holds true for most music production gear, photo and video equipment etc...

 

I read an article not long ago about the 'Mc Donald's' currency which supposedly demonstrates certain economic factors in different countries in light of globalisation. In the US, despite the weak dollar you can still get a large Big Mac meal for $3.99. Try to find it for that price elsewhere in the world. In my country it's more like 8-9 dollars...

 

If you push the envelope you would come to the conclusion that almost everything is more expensive in the EU than in the US. The exceptions where the US is more expensive are almost exclusively limited to European imports. Most costs are just higher in Europe.