Apple, Microsoft and Adobe Required to Explain High Pricing in Australia

IJ Reilly said:

I can see the concept of pricing for markets is really sinking in here.

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So you make and spend USD in Croatia?

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Nope. Our currency is called kuna. But I really doubt any1 here knows thats or the value of kuna. But every1 knows value of USD, so I roughly exchanged 19 000 kunas to USD

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ijason69 said:

Sorry to say you don't know much about Australian politics or the crap government we do have............

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True. I know nothing about Australian politics. But since ur far better off than we are, and since you couldn't possibly have worse politicians than we have, I really envy you guys.

See? No matter how lousy your politicians get, there's always someone that will envy you

c0ppo said:

See? No matter how lousy your politicians get, there's always someone that will envy you

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We USians have a few politicians who I'm pretty sure are literally insane. You don't envy that, do you? :O

Mystic386 said:

I can pay up to 251% more and with us having a relatively low tax rate that just means we're being screwed.

Apple do price gouge and we cop it here in New Zealand as well.


iMac 27 US $1799 NZ $2799 or (US $2341.64)

30.2% more here.


iPad US$499 NZ $ 729 or (US $609.88)

46.1% more here


iTunes - A Movie I want $9.99 US - NZ $29.99 ($US 25.09)

251.2% more here.


1/ This is not due to distributor markups. Apple sets the price through it's own online store here.

2/ We don't have a single Apple bricks and mortar store here.

3/ Apple is burning it's good will.

4/ We find work arounds. Always the way when you're ripped off.

5/ Apple forces buyers to buy internationally through the net. Oddly enough directing sales to the likes of Amazon because their site is blocked.

6/ The local government here is losing revenue because of this practice.

7/ Can some one tell me why the #$% 251% difference on iTunes. It's a digital download how and why should we have Apple screw us over.

8/ You could argue Apple is US based and sets it's own pricing and should be allowed to. People are not blind. They know Apple is screwing them. Heck even the Australian Government has realised that. When a digital download costs me 251% more somethings screwed.

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The Bad Guy said:

You muppets do realise this issue is more about the markup on digital downloads and not hardware prices, right?

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You two have nailed it. The examples in the original article (of 3.8% etc) are trivial. Its the digital downloads, and differences in pricing there that make my blood boil. Lets use the Beatles Box Set on iTunes as an example -:

Beatles box set in Australia AU$259 -> US$269.36

Beatles box set in the United States US$149

A 174% difference. Yet we download from the same servers. Where is the added cost to Apple? People know when they are getting screwed. And we are getting screwed.

Those hardware examples showing a 10% difference a trivial, and I honestly couldnt care less about those. Its the digital downloads with these massive disparity that are significant.

Lancer said:

But that's like saying, don't get the BMW you want, go across the road to Nissan and get a Micra!

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if BMW suddenly decided to jack up their prices by 200%, another enterprising individual or company will fill the pent-up demand that BMW left behind.

Unless in the case of an artificial monopoly or some duopolies, free enterprise should be allowed to charge whatever they want. Apple does not have a monopoly, competition is fierce in this industry. If Apple wants to hurt themselves its up to them. Though, I suspect that they can demand a premium on their products and they are probably better off for doing so. They should charge the maximum they can get for a given P and Q.

It seems like that you are trying to make the argument that "Apple has a monopoly on iOS devices", but that's simply non-nonsensical. Brands survive on product differentiation. Using that logic, every company with a differentiated product has a monopoly on their particular interpretation of a concept. In this world there is no arbitrage and enterprise would not be able to exist as there is no profit motive.

jlc1978 said:

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.

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You have hit the nail on the head here. What many are failing to understand is that there is more to overall costs than manufacturing and shipping. Those are broadly similar wherever a device is sold. All the other costs like support, guarantees etc tend to be the hidden costs that vary wildly from country to country.

alvindarkness said:

You two have nailed it. The examples in the original article (of 3.8% etc) are trivial. Its the digital downloads, and differences in pricing there that make my blood boil. Lets use the Beatles Box Set on iTunes as an example -:

Beatles box set in Australia AU$259 -> US$269.36

Beatles box set in the United States US$149

A 174% difference. Yet we download from the same servers. Where is the added cost to Apple? People know when they are getting screwed. And we are getting screwed.

Those hardware examples showing a 10% difference a trivial, and I honestly couldnt care less about those. Its the digital downloads with these massive disparity that are significant.

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Price differences like this are down to publishers not Apple. Publishers set wildly different price points across different territories and that is reflected in hugely differing end pricing even for digital downloads. No one noticed in the past but the internet has now made this easy to see.

daxomni said:

This thread is so full of blatant ignorance and blind arrogance that it's downright mind boggling.

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Ever read threads on MacRumors before ?

I live in AUS and use the APP STORE, I would love to buy from the US App Store but I can't easily do that. For me it is the APP STORE that is gouging. I can understand 10-20% for a physical product. But 50% premium for a Digital Download? It's not just tech that can be expensive - you should see the difference in price of cars vs the US!

Stella said:

The Australian government have every right to try and protect their consumers against price gouging.

Other countries should do the same IMO.

Unsure why above comments think otherwise?



Even digital delivered content?

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Lets hope apple reduces the prices in Australia and Europe

Adobe screw you

For me it isn't so much Apple/Microsoft pricing as it is Adobe pricing.

Adobe Pricing in USA:
http://www.adobe.com/products/photoshop/buying-guide.html

Adobe Pricing in AU:
http://www.adobe.com/au/products/photoshop/buying-guide.html

Now that is some serious crap right there. A DIGITAL download of Master Collection is $1745.00 MORE in AU than it is in the US. You can't say that isn't a blatant rip off.

I can't believe some of the stuff written by Americans in this thread. The arrogance is downright pathetic. If the shoe was on the other foot you would be demanding to have the prices reduced.

Number 41 said:

Next thing you know, you'll be telling me that Australians don't sit around tossing boomerangs and playing didgeridoo music all day either.

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It really is the best way to relax after a hard day knocking Koalas off the harbour bridge, shovelling echidnas out of our driveways and boxing with kangaroos all day.

torana355 said:

I can't believe some of the stuff written by Americans in this thread. The arrogance is downright pathetic. If the shoe was on the other foot you would be demanding to have the prices reduced.

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Because last time i checked it wasnt the long lost island called Australia ruling the world with their currency, and everyone was all over the australian dream. inb4 Australians getting mad lolol

torana355 said:

I can't believe some of the stuff written by Americans in this thread. The arrogance is downright pathetic. If the shoe was on the other foot you would be demanding to have the prices reduced.

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+1. Hear hear!
The prices in Aus were much higher a few years ago, they have come down to a more equal level though. Adobe and Microsoft should take a few notes...especially Adobe.
Companies such as HP, Canon, Sony and Dell all do the same thing and will hopefully be investigated too.

Lancer said:

Don't worry Labor will be voted out in September

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Replacing an evil with another.

alvindarkness said:

Beatles box set in Australia AU$259 -> US$269.36

Beatles box set in the United States US$149

A 174% difference. Yet we download from the same servers. Where is the added cost to Apple?

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It's not a 174% difference, it's a 74% difference.

The added cost to Apple is the fact that most of the money you pay goes straight to the record company which is setting the price. So you need to complain to the record company.

theluggage said:

Yeah, that's right, just ignore things like having a fuse in every plug and shutters on the live/neutral pins in the socket that don't open until the earth pin is inserted. Me, I prefer not to have a shower of sparks when I plug something in (and that's with your limp-wristed 110 volts rather than our blue-blooded 240V) and to have my wall-wart power adapters stay firmly plugged into the wall, not drooping at a crazy angle.

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Brilliant! True too.

It seems Apple have very little if anything to answer for. Australian prices are pretty good now for most things (music and movies aside, which is why I don't buy from iTunes). In fact we were one of the cheapest markets in the world to buy an iPad. I'm sure they'll show up and say so when asked.

Microsoft and Adobe on the other hand...now they have a lot to answer for as some of the previous examples demonstrate!

$10 albums on iTunes in the USA.
Same album in Australia $16.99.

I see an issue. That's just music.

Computers always cost more, as do iPods etc.
I see no reason justifying the difference, given that now our dollar is on par or better than the American Dollar.

It used to be worth half of the American, then it was justified. Not in a long time though...
Have been asking this question for about 7 years now.

IJ Reilly said:

A very good example of how poorly currency exchange rates are understood. The pricing affect you are seeing is because of the high Australian dollar, not despite it. Of course everything is going to looks cheaper overseas. And do you know how you take advantage of the strong Australian dollar? Travel. Spend your strong currency elsewhere. When your national currency is strong, the world is on sale -- but you have to go there, because those prices will not be brought to you. Sorry if that's inconvenient, but this is the way it works. This is the way it has always worked.

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Trouble is, it doesn't work the other way though... when our dollar was low, our prices were even higher. Retailers can't have it both ways.

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Number 41 said:

Look, Australia --

Just because you've figured out how to sell a steak for $9 at Outback doesn't give you the right to go telling other people how to price things.

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That is very rude indeed. Almost racist against Australians.

I see where the Australians (of which I am one), are coming from. But they fail to see we have some of the best Apple prices outside the USA. I remember the first iPad. The 2nd cheapest place to buy it after tax was Australia. First was USA.

I see they just see the sticker price or the App price in the App store and cry. They forget to see that for your money you're getting the best of the best, hardware wise and software wise. (Yes I mean hardware too, most of us are not after servers or hardcore PC gaming rigs, just something that does our daily work, plays most games and is cheap on the power bill to run).

I am Australian. And if this went to court and I was the presiding judge, I'd fine the plaintiffs (I think that's the right word) a few dollars for wasting courts time and dismiss the case.

Surely the exchange rate can be called upon as an issue. But it's close enough to 1:1 at the moment and shipping is free too. Sure Australia is closer to China then the US is. But the price for shipping is factored into every purchase. World wide. I'm sure this is a set rate for every Apple hardware product globally.

So why does every other country pay more then the US for Apple products?
- To combat a fluctuating exchange rate?
- Countries differing tax rates?
- Amount of product being sold in the country? (ie Maybe there's a discount somewhere in the supply chain or shipping chain if you ship or sell 10x the amount in a certain country I don't know.) Australia has a small number of people and therefore a small number of sales compared to say USA or China.

Yes almost every country pays more then Australia for Apple products. The UK and Germany are some of the worst. And everyone complains about it. Has for decades. At least the Australians are not just complaining. They are trying to do something about it. The only catch is, they are complaining about a non-existant issue. The pricing I think is rather fair for the product you get. The excellent product you get.

LostMyiPhone said:

Let's imagine an Australia without any product from these 3 companies...

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Let's imagine an Apple without any Australia -- many people fail to realise the percentage of sales which come from Australia. Did you ever wonder why Apple's first wave of shipments for products hits Australia first? It isn't because of time lines, I'll give you that much!

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Sydney 2000 said:

It really is the best way to relax after a hard day knocking Koalas off the harbour bridge, shovelling echidnas out of our driveways and boxing with kangaroos all day.

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Yeah mate, I'll join you tomorrow on the bridge, same spot. I'll bring me good boomerang!

Lambros said:

Let's imagine an Apple without any Australia -- many people fail to realise the percentage of sales which come from Australia. Did you ever wonder why Apple's first wave of shipments for products hits Australia first? It isn't because of time lines, I'll give you that much!

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And it probably might not be cause of sales.

I know Australia was one of the first countries to get Windows 98 if I remember correctly. Why here? Simple really. Trial the release on a smaller market. Get it right here, and then move on to a bigger market and learn. And if the release is botched up here, it's not so much of a PR disaster cause in the bigger markets they can fix the mistakes and make it right.

That was windows back then. Today and Apple? Well I would agree Apple would have a lot of sales here. Probably enough to make their first weekend releases of products look large. And also probably cause of the popularity of Apple here. Having 1km ling line ups for things like new iPhones is good press for Apple. And makes the product seem even greater then it is. If we were a country that pre-ordered everything online and never waited inline, that nice public good PR for apple would not be there. I think that's another reason.

the8thark said:

And it probably might not be cause of sales.

I know Australia was one of the first countries to get Windows 98 if I remember correctly. Why here? Simple really. Trial the release on a smaller market. Get it right here, and then move on to a bigger market and learn. And if the release is botched up here, it's not so much of a PR disaster cause in the bigger markets they can fix the mistakes and make it right.

That was windows back then. Today and Apple? Well I would agree Apple would have a lot of sales here. Probably enough to make their first weekend releases of products look large. And also probably cause of the popularity of Apple here. Having 1km ling line ups for things like new iPhones is good press for Apple. And makes the product seem even greater then it is. If we were a country that pre-ordered everything online and never waited inline, that nice public good PR for apple would not be there. I think that's another reason.

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So you're saying that Apple does NOT sell in Australia in first wave due to sales. Instead they sell here because their products are very popular here, and show the rest of the world how much their products sell. Seems a little contradictory to me.

Also, on a side note; this article fails to realise that the Australian Government is targeting two other companies, one of which is Adobe, who sells some of their products for over 150% (often close to double, if you account for the Australian dollar being stronger at the moment) of the cost of their US equivalent.

"We charge more there because Australians are so annoying."