15% markup
i've been living in shanghai for the past 3.5 years, that 15% is tax, similar to VAT in the UK, this is placed on all luxury type items, cars see an even higher markup, you could see BMW's sell for $25K USD in the US and easily sell for $50K USD in China, 200% markup.
the reasons are several fold, the government can do anything they want, they want a part of the cut, and sometimes this tactic is used to limit competitiveness of foreign brands, an example is the car space, the chinese brand cars like cherry sell for under $5K USD (worth that price, too).
regarding the flagship apple store in shanghai, i was there the night before the ipad 2 launch just passing by and i noticed that they had a long line already building up. personally the wifi models are not that useful, i want 3G.
and i'm a little insulted about reading some comments about an agrarian culture moving into industrial, china already passed that stage during the eighties. the upper class has grown since the nineties. and there is no middle class in china, you're either rich, or poor. people lining up to buy ipad2 are rich.
i have lived in a number of big cities like atlanta, boston, tokyo (japan), and shanghai. it wasn't until i came here to shanghai that i felt poor, granted that tokyo is one of the most expensive places in the world. and i'm making easily over 6 digit USDs. i've never seen so many ferraris, lamborghinis, bentleys' in my life. people buy stuff in cash here and often times in sets. now it's certainly not a majority of people that can roll like that here, but there are many, you see these things daily. hence my feeling of being poor.
house prices in china are also through the roof, easily over half a million USD for a 100 square meter flat in downtown. people also buy these with cash.