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People who slate Apple for how expensive the Mini is are forgetting one critical part of the equation: Mac OS X. Consider Mac OS X as the "ultimate" version (compared with Windows 7, for example) and deduct around $200 from the Mini's price and you're getting closer to the hardware cost. Mac OS X development doesn't come from thin air...
 
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).

If you take away VAT, you still have 15-20% price difference.
The 'copyright' fee is 10 Euro. That's why it's 709 and not 699.

The 2-year EU warranty does not affect Apple much, because the EU warranty is only valid between the place where you buy the product and the customer. Apple is only involved here if they sell directly, which they do less outside of the US. Also, the EU warranty effectively loses its 'edge' after 6 months. The often-quoted 2 years are hardly ever really applicable.

So no, these things can't be the reason.
 
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.

That was largely because of the iPad and especially in the recent quarter because of the newly introduced iPhone. Take into account that the Mac is now only a third of Apple's revenue. My take is that the Mac margins haven't changed one bit.
 
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.

I'm European, I'm quite involved in IT sales/business regulations and I've never heard of that. Care to eloborate?
 
I'm European, I'm quite involved in IT sales/business regulations and I've never heard of that. Care to eloborate?

We've got the Sales of Goods Act in the UK.

Thanks to the new European Regulations, UK law now offers greater protection for consumers against products which develop faults within the first 6 months. The assumption is now that if it breaks down within this time period it cannot have conformed to the contract specification when purchased and you have the right to an automatic repair or replacement. Having said this, items which should last several years can still break down after this six month period. If the retailer or manufacturer’s warranty has run out, the shop is often quick to say there is nothing they can do before attempting to sell you an extended warranty. This is misleading. If you buy something which should last 7 years but breaks down after a year and a day, you can still claim it was of poor quality in reference to the durability aspect
.
 
Apple may say that it's just a year, but European law says otherwise.

Short explanation of EU warranty:

You have 6 months full warranty on all consumer products.

You have 2 years of full warranty on all consumer products if you can prove that the defect has already been there at the time when you bought the product. Good luck with that. Effectively that means you don't have 2 years in the vast majority of cases, but only 6 months.

Consequence: After 6 months, you have to rely on the warranty the manufacturer gives you. And that can be anywhere from 0 to infinity. There are no regulations on that.
 
I'm European, I'm quite involved in IT sales/business regulations and I've never heard of that. Care to eloborate?

If you wind back a page or two there are some links.

Basically, most European states have a 2 year statutory warranty period - and all states should have implemented this minimum by 2002.

The UK takes a different approach with a 6 month 'no argument' period during which you can get a repair with out having to prove it's the manufacturer's mistake.

After that there's up to 6 years during which you can potentially get repairs if the item doesn't match the expected life for that type of product.

Looks like the UK didn't specifically ratify the EU 2 year provision, since our regulations were already superior - although that's debatable, since there may be a difference between the two in terms of the proof required to get redress.

You need to look up the laws in your country.
 
Prices haven't changed in France!

bummer.

Strike!

french_riot_police_officers_walk_by_a_burning_car__1689603555.jpg


:D
 
The question now would be how this applies to consumer products in practice. Is there any precedent?

If your Mac broke after 2 years Apple couldn't turn round and say it isn't expected to last more than a year because they are offering extended AppleCare cover for up to 3 years.
 
Short explanation of EU warranty:

You have 6 months full warranty on all consumer products.

You have 2 years of full warranty on all consumer products if you can prove that the defect has already been there at the time when you bought the product. Good luck with that. Effectively that means you don't have 2 years in the vast majority of cases, but only 6 months.

Consequence: After 6 months, you have to rely on the warranty the manufacturer gives you. And that can be anywhere from 0 to infinity. There are no regulations on that.

That's true, comes from Sale of Goods Act. It states everything should last for a reasonable length of time (no more than 6 years) so Mac could easily argue for 3 years.

One thing to note that the standard of proof is "on balance of probabilities". A 51% chance is good enough. So if you can do some googling and find examples of similar faults there is a reasonable chance you could get a result. Especially if there is some evidence of you looking after device well (case, screen protector etc).
 
The problem is that after 6 months the burden of proof switches to the consumer to prove that the problem is with the device itself, not caused by how it has been used.

Thanks for clearing that up. So it's hardly different to the EU warranty in practice. I was really worried for UK retailers :)

It's almost impossible to prove that for most consumer products. So effectively, Apple couldn't care less about anything that happens after the 1 year warranty.

Anyway, this discussion applied only to the UK, and the prices are similarly high in the UK and the rest of Europe, meaning the UK warranty can't be the cause for the 'EU Apple tax'.
 
If your Mac broke after 2 years Apple couldn't turn round and say it isn't expected to last more than a year because they are offering extended AppleCare cover for up to 3 years.

Well, I asked for precedent. No offense, but you simply stating that Apple couldn't do that is not exactly relevant unless you can show me that this is actually the usual procedure for defective Macs in the UK.

Also, if that were really the case, why would anyone in the UK feel the need to buy AppleCare? Just for slightly increased convenience? I seriously doubt that. Wouldn't AppleCare be much cheaper in the UK then?
 
Thanks for clearing that up. So it's hardly different to the EU warranty in practice. I was really worried for UK retailers :)

It's almost impossible to prove that for most consumer products. So effectively, Apple couldn't care less about anything that happens after the 1 year warranty.

Why wouldn't Apple care about stuff after a year.

- They themselves expect Macs to last for 3 years (evidence Applecare)
- It's easy to get evidence of similar failings elsewhere if there are production issues - the Internet is awash with complaints.

So I wouldn't assume it's that difficult to get a fix made even after a year.

Well, I asked for precedent. No offense, but you simply stating that Apple couldn't do that is not exactly relevant unless you can show me that this is actually the usual procedure for defective Macs in the UK.

Apple would be stupid to let a legal precedent be set. Suits them very well to have people believe there's only a year warranty.

It would hardly be the first time someone's made money selling insurance you don't need.
 
Logistics are just one small part of doing business outside your home country. As stated before, there needs to be a team dedicated to running the business in each of those countries (understanding the laws/regulations/directives). There are teams that need to work intellectual property issues. There are the costs of sales (additional online store, establishment of retails stores, retail employees, etc).

These teams are centralized for regions. It's where the term EMEA comes from. Again, other companies are facing the exact same globalization&localization costs and don't have 15-20% higher prices before VAT. So it IS very specific to Apple (and select other companies). So your theory would be that Apple, the 2nd most valuable company of the US, is very ineffective doing business outside the US?
 
Well, I asked for precedent. No offense, but you simply stating that Apple couldn't do that is not exactly relevant unless you can show me that this is actually the usual procedure for defective Macs in the UK.

Also, if that were really the case, why would anyone in the UK feel the need to buy AppleCare? Just for slightly increased convenience? I seriously doubt that. Wouldn't AppleCare be much cheaper in the UK then?

Will this do?
 
Apple would be stupid to let a legal precedent be set. Suits them very well to have people believe there's only a year warranty.

It would hardly be the first time someone's made money selling insurance you don't need.


Just show me that it is regular practice that Apple offers free replacements for Macs after the 1 year warranty runs out and we can stop with the speculations. Until then have my serious doubts.
 
Also, if that were really the case, why would anyone in the UK feel the need to buy AppleCare? Just for slightly increased convenience? I seriously doubt that. Wouldn't AppleCare be much cheaper in the UK then?

Often people don't know their rights, and in some cases the limits on their rights. A few examples-

You don't need a receipt to return a faulty item.
You don't have to take a credit note when returning faulty items.
You shouldn't have to pay a restocking fee to Apple when you return a Mac, even if it is just because you changed your mind. Provided you bought remotely and weren't told of it in advance.
You can't insist a shop sells you an item that is priced incorrectly.

People buy Applecare for peace of mind, and sometimes in ignorance of their rights. The ignorance issue is probably why it isn't cheaper here than in the US.
 
Just show me that it is regular practice that Apple offers free replacements for Macs after the 1 year warranty runs out and we can stop with the speculations. Until then have my serious doubts.

I can't prove that and you know it. It's absolutely not in Apple's interest to publicise any repairs or replacement beyond their 1 year warranty period, as it would undermine sales of Applecare.

You're welcome to your doubt, but I don't share it.
 
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