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View Full Version : iMac Price Drops in the UK


arn
Aug 1, 2002, 06:57 PM
CNet reports (http://news.com.com/2100-1040-947730.html?tag=fd_top) that Apple has dropped the prices of the iMac in the UK:

The low-end model now sells for 1,149 pounds ($1,792.53), a 100-pound drop. The mid-range model, which comes with a combination drive that can burn CDs and play DVD movies, now sells for 1,349 pounds ($2,104.55), a 50-pound drop.


On Tuesday, MacNN reported (http://www.macnn.com/news.php?id=15608) that US prices would quietly follow and return to original iMac pricing... but according to Xlr8yourmac (http://www.xlr8yourmac.com/archives/jul02/073002.html#S14199) current US "price cuts" are simply cuts in Minimum Advertised Price of the iMacs rather than actual cuts.

strider42
Aug 1, 2002, 07:18 PM
My question is does this mean they've lowered the cost for their resellers. If so, that would be really good: to allow them to earn a bit more profit on the machines, while giving them leeway to be competitive with each other or put together some good bundles. meanwhile apple's own store will bring them in more profit per machine (assuming costs have dropped to make this possible).

Or perhaps their simply going for less margin on the machines, though 100 bucks would be a lot of margin to absorb.

arn
Aug 1, 2002, 07:20 PM
Originally posted by strider42
My question is does this mean they've lowered the cost for their resellers. If so, that would be really good: to allow them to earn a bit more profit on the machines, while giving them leeway to be competitive with each other or put together some good bundles. meanwhile apple's own store will bring them in more profit per machine (assuming costs have dropped to make this possible).

Or perhaps their simply going for less margin on the machines, though 100 bucks would be a lot of margin to absorb.

Presently, the US cuts are simply the Advertised Price.... so in the US, it cuts into the margins. In the UK, presumably they are true price cuts.

arn

mnkeybsness
Aug 1, 2002, 08:22 PM
apple is either making huge profits off of the UK, or else maybe the cost of shipping is just that high...maybe they found a way to cut some prices for them in the shipping department

IJ Reilly
Aug 1, 2002, 11:34 PM
Originally posted by mnkeybsness
apple is either making huge profits off of the UK, or else maybe the cost of shipping is just that high...maybe they found a way to cut some prices for them in the shipping department

No, not really. UK prices are always quoted included VAT (their version of sales tax), which is presently 17.5%. If the dollar-pound exchange rates were still where they were before the dollar took a dive last month, and subtracting out VAT, UK iMac prices would virtually the same as they are in the US.

zed_stussy
Aug 2, 2002, 03:20 AM
I work for an applecentre in the UK and I can tell you that because we are supplied direct from apple we too have reduced the prices of the imac g3 & g4 range.

The g4 range of imacs now start at 1148.00 and go upto 1403.00

The ipods are also reduced by apple since the launch of the twenty. You can now get a 5gb at 220.00

In the UK we are also stuck with 60gb xserves. At present they are still the only available xserve spec being shipped to the uk.

Last and not least, we have not as of yet been contacted by apple regarding .mac and 'pushing' it as an applecare type service.:confused:

rjgjonker
Aug 2, 2002, 04:40 AM
Interesting, because in Europe, it's illegal to set a minimum adertisement price. It conflicts with an EU-law concerning consumer rights. The reason behind this is that it would conflict pricing competition.

OSeXy!
Aug 2, 2002, 06:38 AM
Originally posted by IJ Reilly


No, not really. UK prices are always quoted included VAT (their version of sales tax), which is presently 17.5%. If the dollar-pound exchange rates were still where they were before the dollar took a dive last month, and subtracting out VAT, UK iMac prices would virtually the same as they are in the US.

Actually, I think it's the crashing dollar rate which has brought them into closer parity. I think this is a good move by apple to attempt to make its products look more competitive - I just wish the prices were similarly reduced across the whole line. Then we wouldn't have to take advantage of US economic woes to sort out the typical price gouging we see in Europe.

whooleytoo
Aug 2, 2002, 09:55 AM
Originally posted by OSeXy!

Then we wouldn't have to take advantage of US economic woes to sort out the typical price gouging we see in Europe.

'Gouging' is a mild word for it. I recently was surprised - and pleased - to see flat panel iMacs prominently displayed in a previously Mac-only store in Cork. But on closer inspection, it was a 700MHz model selling for over 4,500 euros! I don't know if that's due to Apple pricing or dealer margins, but this is within
2 miles of the manufacturing plant! Little wonder 1.8GHz PCs at
1,400 sell better..

Nebrie
Aug 2, 2002, 09:55 AM
Originally posted by rjgjonker
Interesting, because in Europe, it's illegal to set a minimum adertisement price. It conflicts with an EU-law concerning consumer rights. The reason behind this is that it would conflict pricing competition.

It's not interesting because Apple doesn't set a minimum advertisement price. However, if they do decide to sell below the minimum advertisement price, all that means is apple will stop sending them promo/ad money and benefits.

StuPid QPid
Aug 2, 2002, 10:30 AM
Originally posted by whooley


'Gouging' is a mild word for it. I recently was surprised - and pleased - to see flat panel iMacs prominently displayed in a previously Mac-only store in Cork. But on closer inspection, it was a 700MHz model selling for over 4,500 euros! I don't know if that's due to Apple pricing or dealer margins, but this is within
2 miles of the manufacturing plant! Little wonder 1.8GHz PCs at
1,400 sell better..

That must be some mistake. Check the Apple Store Ireland. There the prices for the 700 Mhz iMac are 1935 Euros or 2177 Euros including VAT! Either that or it's loaded with extras of some sort, or the reseller is ripping people off!

PS Anybody know if these price cuts have been made elsewhere in Europe, especially (for me ;) ) in Germany?

IJ Reilly
Aug 2, 2002, 11:43 AM
Originally posted by OSeXy!


Actually, I think it's the crashing dollar rate which has brought them into closer parity. I think this is a good move by apple to attempt to make its products look more competitive - I just wish the prices were similarly reduced across the whole line. Then we wouldn't have to take advantage of US economic woes to sort out the typical price gouging we see in Europe.

Yes, clearly this cuts both ways -- the weaker dollar does allow US exporters to reduce prices somewhat, but keep in mind that component and assembly costs (in Asia) are effected on the other side of the ledger, so I suspect it more of less evens out.

In any event, the price differentials are not quite as large as they may appear to Americans, who are used to seeing prices quoted exclusive of sales taxes.

barkmonster
Aug 3, 2002, 12:54 PM
The entry level 800Mhz G4 is the equivelent of $1,803.35 in the UK, that's before V.A.T

I think the reason for the price cuts are because of exchange rates.