Price Difference: Australia and USA

[lizardofwoz]

Am I being naive?

Why the ENORMOUS price difference between Apple Australia and Apple USA?

The Aussie dollar has parity with the US dollar, but the BASE iPhone5 is over AUS$800 in Australia.

[MacDawg]

You are looking at unsubsidized pricing
The US prices are with a 2 year contract on the carrier... i.e. a subsidized price

[articulatefool]

The base iphone 5 here is $649.

There are many factors that may apply including import tax, local tax, federal tax, etc...

[knuster]

Same **** here in europe!

679€ for the 16GB iphone 5......that's $875!!!

[lizardofwoz]

Originally Posted by MacDawg

You are looking at unsubsidized pricing
The US prices are with a 2 year contract on the carrier... i.e. a subsidized price

Thank you, MacDawg.

[OSMac]

IN AU can you get a discount if you sign a contract like in the US?

[hifromtomorrow]

Originally Posted by articulatefool

The base iphone 5 here is $649.

There are many factors that may apply including import tax, local tax, federal tax, etc...

And a little gouging. All companies do it to us down here.

I'm buying one anyway, am I right people!?

[KandyKane]

Originally Posted by articulatefool

The base iphone 5 here is $649.

There are many factors that may apply including import tax, local tax, federal tax, etc...

You guys pay Tax on top of that right? About 10%? So it works out $714USD???

Our pricing is $799AUD including GST. So $85 difference isn't too bad.

Originally Posted by OSMac

IN AU can you get a discount if you sign a contract like in the US?

Yes we get it cheaper on a contract, but we pay monthly instead of upfront (e.g.. 16GB iPhone4S is currently an extra $7 per month on a $60 plan x 24 months, It varies with the plans, they come 'free' or included on higher plans)

[leenak]

Originally Posted by KandyKane

You guys pay Tax on top of that right? About 10%? So it works out $714USD???

Our pricing is $799AUD including GST. So $85 difference isn't too bad.

Tax varies, some places it is no tax, others it may be close to 10%. Where I live, tax is 6%

[waloshin]

Australians at age 20 make a minimum wage of $15.69 an hour American's make an average minimum of $6.50 there is a big difference that is why you pay more. If anything you should be paying double.

[upnorth85]

As some who has lived in Oz and now US, I think everything costs more in Australia. Custom fee and processing, transportation, GST taxes and huge difference in retail wages, low population for apportioning overheads means everything in OZ costs more. Even a cruise starting in the US is sold for higher price in OZ. US wages and transportation costs are lower than Europe. This is not about Apple but local costs. Even McDonalds pricing is same. I just got back from a European trip and everything costs more there! Luckily no US style tipping system there.

[Mr Hill]

Originally Posted by waloshin

Australians at age 20 make a minimum wage of $15.69 an hour American's make an average minimum of $6.50 there is a big difference that is why you pay more. If anything you should be paying double.

This is probably part of the reason. Thank your government. In addition to import taxes and fees.

[Random 995K]

Actually we Australians pay THE SAME on plans! We can get the iphone 5 for FREE with $60 a month for two years. American pay $200 and have to pay something like $50 a month plus TAX. In australia 10% GST is included, so to make matters even worse for americans, they pay $220 for the phone. And also (not 100% sure) pay 10% on top of the monthly bill. Also we make more money than americans on average.

Outright Americans get it for $649+tax (~$65) while we get it for $799 outright. It works out cheaper for them by about $70 outright but as said earlier, on average we make more $ per hour. The Iphone also subsidised in Australia.

[Nale72]

Here in Sweden the lowest price for an unlocked iPhone 5 16 GB is equivalent to around 900 USD...

[syd430]

Originally Posted by lizardofwoz

Am I being naive?
Why the ENORMOUS price difference between Apple Australia and Apple USA?

Originally Posted by hifromtomorrow

And a little gouging. All companies do it to us down here.

Average incomes are also higher in Australia, which allows them to get away with a higher price at the same level of demand when all other exogenous factors are equal (which they are not).

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Originally Posted by Mr Hill

This is probably part of the reason. Thank your government. In addition to import taxes and fees.

How is a bad thing if prices are high, but wages are even higher? The net result is lower prices relative to wages. You are actually applauding the government.

edit: or was that your intention? (thought it was sarcasm at first)

[upnorth85]

Higher prices reduce the standard of living. Australia is around 5th in GDP per capita but drops to 12th or so when purchasing power parity is considered. In the US it is just the reverse and the US ends up in the top 5 for GDP per capita PPP. Bottom line when taxes are low and regulations are low more people have a better standard of living including being able to afford to buy an iPhone. BTW, it is not Apple making more money but the higher expenses in Australia that increase the end price. Additionally, US networks provide unlimited minutes and calls to mobile phones are same as calls to landlines. In Australia calls to mobile phones from landlines are more expensive than calls to the US. So the wireless providers get this additional revenue, thanks to Telstra.

Originally Posted by syd430

Average incomes are also higher in Australia, which allows them to get away with a higher price at the same level of demand when all other exogenous factors are equal (which they are not).

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How is a bad thing if prices are high, but wages are even higher? The net result is lower prices relative to wages. You are actually applauding the government.

edit: or was that your intention? (thought it was sarcasm at first)