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OllyW

Moderator
Staff member
Oct 11, 2005
17,196
6,800
The Black Country, England
Well, yeah… this is why I added it in the calculation as you can see above ;-)

Well you can't blame Apple for our high taxes. It's much fairer to compare the prices without the VAT to get a more accurate figure for how much extra Apple are charging us.

Without tax it was 35% more expensive and is now 18% more.
 

mdriftmeyer

macrumors 68040
Feb 2, 2004
3,812
1,988
Pacific Northwest
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A306 Safari/6531.22.7)

They really need to drop the price in the U.S.

Or keep the price and change the form factor and offer the ability to have more bang for buck.
 

GroundLoop

macrumors 68000
Mar 21, 2003
1,583
62
Just want to add that of course this is not entirely Apple's fault due to different sales taxes/VAT.

People always try to discuss price differences in terms of exchange rate and tax differences only. There is much more that goes into pricing than just those two items.

For example, in order for Apple to support business operations in a non-US country, they need to establish the infrastructure and comply with all of the local regulations/laws. There is maintenance of the online store and brick and mortar stores. These costs will then be spread across all of the products that are sold in that country. If the country has a smaller sales base, then the infrastructure costs per unit are higher than in a country with a larger market. This results in a higher unit cost in smaller markets.

GL
 

Hawkeye411

macrumors 68000
Jun 6, 2007
1,833
12
Canada EH!!!
Still far too expensive for an entry-level product. If apple was serious about the budget market, they'd drop the price below £450. Even if that meant making it slightly bigger, or out of plastic.

Plastic?? :eek: Next you will be suggesting white plastic??!! Who ever heard of such a thing? That would never fly! ;)
 

hachre

macrumors 6502a
Sep 26, 2007
690
43
When they're having problems selling them, it's just because of the price.
When they introduced the Unibody Mini the base price jumped by 300 Euro (around $420) in Germany. A Mac Mini used to be available for around 500 Euro ($700), and afterwards was at 800 ($1120). Now it's at around 700 ($980)... sill some way to go before it gets really attractive again. These prices in Europe already include education rebates btw...
 

OllyW

Moderator
Staff member
Oct 11, 2005
17,196
6,800
The Black Country, England
People always try to discuss price differences in terms of exchange rate and tax differences only. There is much more that goes into pricing than just those two items.

For example, in order for Apple to support business operations in a non-US country, they need to establish the infrastructure and comply with all of the local regulations/laws. There is maintenance of the online store and brick and mortar stores. These costs will then be spread across all of the products that are sold in that country. If the country has a smaller sales base, then the infrastructure costs per unit are higher than in a country with a larger market. This results in a higher unit cost in smaller markets.

GL

But if you make it too expensive it doesn't sell.

Do you think Apple would have reduced the prices today if they had been selling like hotcakes?
 

MagicBoy

macrumors 68040
May 28, 2006
3,947
1,025
Manchester, UK
It's still £100 too expensive.

$699 comes out at around £440, add the 17.5% VAT and a little for UK cost of doing business surcharge and it should be £549 or less.
 

dcorban

macrumors 6502a
Oct 29, 2007
914
30
Still far too expensive for an entry-level product. If apple was serious about the budget market, they'd drop the price below £450. Even if that meant making it slightly bigger, or out of plastic.

I think you do not understand why people buy Apple products.
 

Lifequest

macrumors regular
Feb 9, 2010
109
0
I rated this negative only because no story on Macrumors can only have positive ratings! :D

That and the Canadian price is still the same, 50$ over US when our dollars are on or close to parity.

Oh poor you, the Austrailan dollar is now higher by 0.00005 and we're paying, $999 for the low and $1399 the high end. Quit whining.
 

G77

macrumors regular
Jan 12, 2010
127
0
prices

Higher prices in Europe are about 2 things:

Vat (which is not included in US prices)

2 year warranty in most european countries (its 1 year in US afaik).

There are also other ******** taxes in europe on computers like copyright and recyclation fees (dont know if these are in US).

Reduction is welcomed, hope it stays this way or go even lower with new minis.
 

Heilage

macrumors 68030
May 1, 2009
2,592
0
Cool. Dropped prices are nice.

However, they will problaby still not sell as much. According to the sales people at my job, Mini sales have declined after the increase in price (and revised design).
 

RandomJunk

macrumors newbie
Oct 13, 2010
20
0
Sussex, UK
Still too expensive to want to make me change my older Mini.

The BTO options are ludicrous too. 8Gb RAM upgrade £400.01 - Crucial price £123.73! 500Gb drive £80.01, where you can buy a bare drive for about £30 retail. (Also, don't forget that the Apple upgrade price takes into account they are removing the original memory or hard disk first!)
 

KnightWRX

macrumors Pentium
Jan 28, 2009
15,046
4
Quebec, Canada
The Mac Mini is a tramp in a good suit. Compared to computers at it's price point, even the new lower ones, it's wildly underspec'd and overpriced - always has been, always will be.

It isn't. You're comparing it out of segment. Compare it within its segment, Small Form Factor, and it's decently priced and specced.

Remember kids - Size and footprint are specs too.

By your definition of underspec'ed and overpriced, every laptop on the market from every manufacturer is overpriced and underspecced, because an equivalent PC/screen/mouse is cheaper. It just doesn't work that way, the market is segmented for a reason.
 

GroundLoop

macrumors 68000
Mar 21, 2003
1,583
62
But if you make it too expensive it doesn't sell.

Do you think Apple would have reduced the prices today if they had been selling like hotcakes?

If the price is too high to enter a market....you don't enter it...

I think that they are reducing the prices due to economic factors including inventory costs. In general, Apple's margins have been coming down slowly. The bit of information that none of us has is "what is the cost to do business in each of these countries?"...

Maybe it is a 17% adder in one country vs 13% in another. This is what triggers that variability in pricing around the world (in addition to plain tax and exchange rates).

GL
 

firestarter

macrumors 603
Dec 31, 2002
5,506
227
Green and pleasant land
For example, in order for Apple to support business operations in a non-US country, they need to establish the infrastructure and comply with all of the local regulations/laws. There is maintenance of the online store and brick and mortar stores. These costs will then be spread across all of the products that are sold in that country. If the country has a smaller sales base, then the infrastructure costs per unit are higher than in a country with a larger market. This results in a higher unit cost in smaller markets.

Yes, but that infrastructure also costs money in the US. Apple has a large number of stores in the UK - their infrastructure and logistics here must be pretty efficient.

The largest difference is probably due to the different trade and consumer regulations in Europe. If the standard warranty in the US is 1 year, in Europe it is effectively at least 2 years.

There's support under European law to take a product back for repair if it fails within what you'd expect to be a 'reasonable life' for that sort of product. That can extend well beyond the statutory two years for something like a computer which you WOULD reasonably expect to last longer.

These laws must add a quite significant extra cost to those doing business in Europe - and from the consumer's point of view it's worthwhile comparing the higher price of Apple kit here, compared to the saving you may be making on not really needing to buy Applecare.
 

organerito

macrumors 6502
Nov 9, 2008
407
19
Apple ... entry-level product ??? Get real ...

If you want to buy cheap entry level garbage with stripped down features and/or cheap components, you have to go somewhere else.

Could you please tell me why the Mac Mini is not an entry level computer? Is the processor made by God's power? Did Flash ( Superhero) make the speedy RAM?

What is not entry-level besides the nice logo and the high-end price?
 

ipodtouch2008

macrumors newbie
Feb 27, 2008
17
0
Australia always gets treated badly by Apple.
The Mac Mini is 40% higher here.
So once you take out GST 10%.
That is 30% increase for no good reason.

It is cheaper to get one sent here from the us.


**** you Apple :mad:
 

KnightWRX

macrumors Pentium
Jan 28, 2009
15,046
4
Quebec, Canada
Could you please tell me why the Mac Mini is not an entry level computer? Is the processor made by God's power? Did Flash ( Superhero) make the speedy RAM?

What is not entry-level besides the nice logo and the high-end price?

The form factor. The Mac Mini is not an entry level desktop tower, like those 300$ PCs you see floating around, it's a small form factor PC.
 

hachre

macrumors 6502a
Sep 26, 2007
690
43
Higher prices in Europe are about 2 things:

Vat (which is not included in US prices)

2 year warranty in most european countries (its 1 year in US afaik).

There are also other ******** taxes in europe on computers like copyright and recyclation fees (dont know if these are in US).

We don't have a 2 year warranty. We only have some kind of assurance that the store where we bought a product is going to help us as best as he can in the case that we have trouble. But it's no warranty because after the manufacturers warranty (which is 1 year) is up repairing the defective unit costs the same fees that it normally would. The only thing we have is the assurance that we can get it repaired (for money) within 2 years and the shop will handle it for us. (At least in Germany!)
 

cheungpat

macrumors newbie
Aug 26, 2005
8
1
Mac mini is still selling at the same price in Hong Kong Apple Store. Am I missing something? Ah yes, Hong Kong Dollar is pegged to the US Dollar.
 

OllyW

Moderator
Staff member
Oct 11, 2005
17,196
6,800
The Black Country, England
If the price is too high to enter a market....you don't enter it...

I think that they are reducing the prices due to economic factors including inventory costs. In general, Apple's margins have been coming down slowly. The bit of information that none of us has is "what is the cost to do business in each of these countries?"...

Maybe it is a 17% adder in one country vs 13% in another. This is what triggers that variability in pricing around the world (in addition to plain tax and exchange rates).

GL

The mark-up on the new mini was way higher than that on other Apple products and it there was much discussion on the matter when it came out.

Why do you think the costs would be more than twice as much to sell a mini in Europe than a MacBook or iMac?
 

peterdevries

macrumors 68040
Feb 22, 2008
3,146
1,135
Amsterdam, The Netherlands
Yes, but that infrastructure also costs money in the US. Apple has a large number of stores in the UK - their infrastructure and logistics here must be pretty efficient.

The largest difference is probably due to the different trade and consumer regulations in Europe. If the standard warranty in the US is 1 year, in Europe it is effectively at least 2 years.

There's support under European law to take a product back for repair if it fails within what you'd expect to be a 'reasonable life' for that sort of product. That can extend well beyond the statutory two years for something like a computer which you WOULD reasonably expect to last longer.

These laws must add a quite significant extra cost to those doing business in Europe - and from the consumer's point of view it's worthwhile comparing the higher price of Apple kit here, compared to the saving you may be making on not really needing to buy Applecare.

The physical infrastructure that Apple occupies in Europe is also more expensive. Even taking into account the premium locations of Apple Stores in NYC and Chicago, the average rent or price per square meter of store space in Europe is much higher than in the US.

In addition the sheer number of units sold in Europe is lower than in the US, which makes the overhead cost (office space, distribution costs, etc) per unit sold higher than in the US.
 
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