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Apple, Microsoft and Adobe Required to Explain High Pricing in Australia
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Well, to give you an example. The highest standard-configuration Retina MacBook Pro costs $2799 in the United States, without taxes.
In Europe, it can cost as much $3265 without any taxes at all. So, without taxes, there's already a difference of $466. You could buy an iPad mini + an iPod shuffle + accessoiries with this money.
If you take into account that taxes are extremely high in other modern, western, countries, than the difference is even more astonishing. In Europe, the Retina Macbook Pro I talked about will cost you $3951. If you compare that with the United States, where in some states you don't even need to pay sales tax, than there's a difference of $1152.
Basically, there are two issues:
- Apple asking much more money, even when taxes are taken out of the equation (as seen above: a Retina MacBook Pro standard configuration costs $466 extra).
- High sales tax, adding to the cost compared to the USA [in some states, you don't even need to pay sales tax] (as seen above: when you include taxes, a Retina MacBook Pro standard configuration costs $1152 extra)
The second thing is something Apple can't fix. It's not their problem. The first thing, however, is outrageous.
The combination just makes it really hard to swallow for a lot of people. You can get one Retina MacBook Pro in Europe while, for the same money, in the United States you can get one[/b] Retina MacBook Pro, one iPad mini, one unlocked 16 GB iPhone 5, one Apple TV and still have $75 for accessoiries or iTunes content or whatever.
Again, the problem is a combination of Apple asking a premium plus high sales tax. Also, again, it should be no surprise: for a lot of people, it is hard to understand why in Europe - and other parts of the world - you can only get one MacBook Pro, while for the same money in the US you can get a Retina MacBook Pro + iPad mini + iPhone 5 + Apple TV + still have money left for accessories or iTunes content or whatever.
25% VAT on everything you buy here in Norway...
Along with 30% ++ (depending on what you earn) income tax there really isn't much left to spend, sadly
Shenzhen - Sydney = 4587 Miles
Shenzhen - Los Angeles = 6888 Miles
So further you ship the cheaper it is
Then I blame the Chinese.
If the items are priced lower won't the government receive less in taxes? Wouldn't the government want to squeeze out as much as they could in taxes?
Obviously there wasn't any cues you noticed. Sadly for you you're the only one missed it.
what? isn't any company allowed to sell their products and services for whatever amt they wish?
Isn't that the nature of the market?
Isn't that the nature of the market?
Nothing compared to Lebanon!
The difference in pricing between Australia and US is so small!!!
A new Mac Book Pro that costs 1200$ in US is 2000$ here in Lebanon.
A 129$ Ipod nano in US costs 300$ in Lebanon.
I ca give you examples till tomorrow! Price margins are so big!
The difference in pricing between Australia and US is so small!!!
A new Mac Book Pro that costs 1200$ in US is 2000$ here in Lebanon.
A 129$ Ipod nano in US costs 300$ in Lebanon.
I ca give you examples till tomorrow! Price margins are so big!
Too funny. Apple can choose the prices for its products and the consumer can choose not to buy. It's only collusion between the companies that would be illegal.
Free enterprise is a bitch isn't it. Try buying an imac in Maui and see what you get. It's called the Price of gas. A friend of mine recently moved to Melbourne and their kids must have their american branded cereal in the morning (Parenting issue) and they go to a store that sell Lucky charms at $18 a box. If you are going to add import taxes, shipping costs onto your product then guess what, you're going to pay more.
If the Aussie government doesn't like it then make it attractive enough for a business to setup a manufacturing plant in your country so they can offer products at a cost equivalent to other countries.
Here, use this as an example on international cost. How much to buy an australian Kangaroo burger in the States?
http://www.marxfoods.com/products/Kangaroo
nuff said.
If the Aussie government doesn't like it then make it attractive enough for a business to setup a manufacturing plant in your country so they can offer products at a cost equivalent to other countries.
Here, use this as an example on international cost. How much to buy an australian Kangaroo burger in the States?
http://www.marxfoods.com/products/Kangaroo
nuff said.
Probably....
Quote:
“While television and computer prices fell 14 per cent according the to the latest Consumer Price Index Figures, there’s still a long way to go – with some estimates suggesting that Australian prices are up to 60 per cent higher than the US."
I would call that price gouging, with everything all considered - i.e., taxes etc.
You have to ask?
The comments would just be to opposite if Apple was named.
Not really, the comments would be very different if it was just microsoft being referenced...
Shenzhen - Sydney = 4587 Miles
Shenzhen - Los Angeles = 6888 Miles
So further you ship the cheaper it is
what about returns that they are refurbishing in the USA?
You also need to factor in the cost of meeting EU regulations and consumer protection laws. Since the EU essentially adds an extra year (or more) to the warranty Apple prices to pay for that added cost. In addition, the fixed costs of overhead for maintaining a local presence as well as localization needs to be factored into pricing. Finally, they need to maintain margin so higher costs mean even higher prices than just the cost differential in the end.
The UK is just as bad.
At the regular rate, they tax 22% of your salary. And then add 20% VAT onto everything you buy (except petrol, which gets a massive tax rate).
So you buy an iMac for £999 excluding VAT. Including VAT, it becomes £1199, and to buy that, you'd have to earn, before tax, £1537.
Petrol is laughable, fuel duty and VAT make up 64% of the price. So for every £1 (exc tax) of fuel, you'll have to pay £1.57, which will require earnings of £2.01 before tax (at the same 22% rate) - over double.
Add in sales tax
In most US communities you pay some kind of sales tax. Apparently the average is a 9.60%. http://www.forbes.com/sites/williampbarrett/2012/02/02/average-u-s-sales-tax-rate-drops-a-little/
Add that in and some of us in the US pay even more than Australia, so stop whining!
In most US communities you pay some kind of sales tax. Apparently the average is a 9.60%. http://www.forbes.com/sites/williampbarrett/2012/02/02/average-u-s-sales-tax-rate-drops-a-little/
Add that in and some of us in the US pay even more than Australia, so stop whining!
Political Grandstanding
Every thing in Aussie is priced high - Cost of Living in Aussie here. Why single out electronic manufacturers.
Every thing in Aussie is priced high - Cost of Living in Aussie here. Why single out electronic manufacturers.
Maybe not completly ridiculous, but I am not sure the government should be involved in setting prices for these types of goods.
That seems a bit strange.
The best bit about Apple at the moment is design and I think you have an Englishman to thank for that.
Bloody Americans
Best response ever.
Furthermore, this is what the EU should be doing (instead of worrying about Mac Pro fans). Well done Oz! I hope you get somewhere with this.
In Norway, with a normal salary you'll end up paying about 36% tax, before having to pay 25% VAT after that...
And when it comes to petrol, we have the normal 25% VAT in addition to about £1 of extra tax per liter of it! A liter of petrol is about £1,6 now a days...
Based on the companies being summoned, it sounds to me like the Australian Government is more concerned with software pricing than hardware pricing... Microsoft doesn't sell nearly as much Hardware as they do Software (it's in their name!), and AFAIK Adobe is Software only.
Plus whereas Apple's hardware prices are justifiable in Australia, their digital downloads aren't.
Plus whereas Apple's hardware prices are justifiable in Australia, their digital downloads aren't.
Here in Sweden we're currently enjoying a nice 24 % or so premium on most Macs. (Less on iPads for some reason.) I'd be happy enough with a 10 % premium, pre-VAT. (Which is to say I'm refusing to buy the iMac that I want until Apple do a currency adjustment.)
The current premium is unusual though. It is my belief that most of it is because Apple set the price using the abnormal exchange rate from last summer, even for the iMacs and rMBP launched in the autumn.
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from what i remember all the prices in Europe include the 20% VAT. its not extra like in the US
and in some european countries you have to include a 2 year or longer warranty so people got what they voted for
and last i read the euro is in the toilet compared to other currencies
Simple Answer
Simple Answer: Because they can.
Price discrimination is common in many industries. For example, when you buy a movie ticket there is one price for child, adult, and senior. However, it's the same film so what gives?....it's price discrimination.
I would guess that Apple has a good explanation, but even if they didn't I think they should just say, "if you don't like our prices, don't buy our stuff". Or, "If you would like the US price and you want to save a few bucks you can buy a $2000 plane ticket to America and buy it there and take it back to your home country".
Simple Answer: Because they can.
Price discrimination is common in many industries. For example, when you buy a movie ticket there is one price for child, adult, and senior. However, it's the same film so what gives?....it's price discrimination.
I would guess that Apple has a good explanation, but even if they didn't I think they should just say, "if you don't like our prices, don't buy our stuff". Or, "If you would like the US price and you want to save a few bucks you can buy a $2000 plane ticket to America and buy it there and take it back to your home country".