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View Full Version : Can we put an end to the price increase threads?




nick9191
May 28, 2009, 10:37 AM
Apple do not hate you, they are not out to get you. They are not increasing prices just to annoy you.

There is this small little thing called the exchange rate http://en.wikipedia.org/wiki/Exchange_rate

It determines the price of goods and services from the country of origin into the the currency of the country importing the goods. The exchange rate changes every day based on the global economy.

Lets do some simple math.

1 US Dollar is currently worth 0.626150 GBP, or 63 pence. This means that it costs 63p to buy a dollar. 1 pound is currently worth 1.59706 USD, or $1.60. This means it costs $1.60 to buy 1.

A Macbook costs $999 US Dollars. In the United Kingdom, the price you see is the price after VAT. In the United States, the sales tax (equivalent of our VAT) is added on afterwards because sales tax varies from state to state in the US.

Our current VAT is 15%, this means that 15% of the cost of the product is added on to the cost of the product. This 15% then goes to the government, the government then use this tax to pay for MP's to get their bollocks waxed. But that is beside the point.

$999 plus the 15% tax is $1148.85. $1148.85 into GBP is 719.31.

But wait? Thats the same price as the Macbook used to cost, so why did they put it up to 749. Well there are many business unfriendly policies in this country, basically equating to the fact that it costs Apple more money to do business here than it does in other countries like the United States. Overheads are higher, rent is higher, our minimum wage is a lot higher. If anything, Apple are probably subsidising the cost slightly to keep business.

Simply said, Apple do things for a reason. There are a host of people you can blame for price increases, one of those people is not Steve Jobs.



BlackMax
May 28, 2009, 10:47 AM
Excellent break down explaining why the folks in the UK pay more for their MBs than we pay in the US!

Our current VAT is 15%, this means that 15% of the cost of the product is added on to the cost of the product. This 15% then goes to the government, the government then use this tax to pay for MP's to get their bollocks waxed. But that is beside the point.

This is my favorite line of the explanation which hits the nail on the head. If you don't like the price you're paying in the UK for your MBs as opposed to what we pay here in the US go talk to your MP, not Apple.

But give us time here in the US... We'll catch up to you shortly and then everything will be fair again. :eek: