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Why doesn’t Apple just start their own currency? Yeah, call it the Apple Apple. Symbol is the Apple logo with little dashes on top and bottom. New iPhone costs 100 Apples. And if people complain about price, Tim could say, “well you’re not comparing...”
 
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And they should start with Europe, where the iPhone XS starts at 1149€ ($1299) as opposed to US' $999.

In USA $999 is before taxes, while in Europe (at least in Italy and some other countries) the price already includes taxes. When you do the math the final price with taxes is much closer to the US price — it’s still more expensive in Europe than in the US, but the difference is much smaller than the numbers you mentioned :)
 
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In Germany it's 1149 Euros with 19% sales tax, so 965 Euros without. In the US its $999 without tax. :rolleyes: So in Germany it's not that big of a difference if you convert Dollars to Euros. Not trying to justify it, just saying you have to compare the correct numbers.

Oh and don't forget the 10 Euros GEMA copyright fee on smartphones that's calculated into the price. o_O
In Sweden the starting price for the Xs including VAT is $1415. Considering that the Swedish market is already saturated I would expect sales to go way down the drain during 2019.
 
The people have spoken.

Now let’s enjoy a $50 saving....

(Hopes aren’t high)
[doublepost=1548834283][/doublepost]
AU$1,299.00 for an XR
That’s more than the pricing of a 6S, yet the XR has a more deprived feature-set to the XS, compared to the 6S & 6S +.
 
The people have spoken.

Now let’s enjoy a $50 saving....

(Hopes aren’t high)
[doublepost=1548834283][/doublepost]
That’s more than the pricing of a 6S, yet the XR has a more deprived feature-set to the XS, compared to the 6S & 6S +.

Lol, that's EXACTLY what I think apple is going to do, drop the price by 50 $/€ , I'm really having a hard time imagining them cutting the price by more than 50-100 €, at least in Europe they should make the prices match the USA prices 1$ = 1€ , yes I know that here in Europe, taxes are included , but 1000 € is still more money than 1000 $ + taxes.
 
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Can’t imagine they’ll do anything for the UK no matter how dire with Brexit (maybe) just around the corner ;)

iPhone XS 256GB Silver and Space Grey has dropped under £1000 on Amazon.co.uk sold by Amazon/Apple, so its happening.

I would assume Gold is popular so no need to price drop. XS Max is outselling XS so again no need to price cut.......yet. Give it a couple more months and I think it will drop £100-£150.
 
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-> iPhone XS in the US : 999$ (873€)
--> Add french 20% VAT = 1048€
---> But somehow, Apple sells the iPhone 1155€

That's a 107€ (122$) difference.
 
Maybe Samsung has better quality phones? Maybe they are eating warranty cost to obtain more marketshare? IDK....

I was just pointing out that it is common business practices to incorporate estimated warranty claims in the price of products.

If a business estimates their warranty claims for a product with a one year warranty will be 1 out of every 100 units sold, and they are shooting for a particular profit margin, they will include the cost of the warranty claims into the unit price.

If they have a two year warrant and have a claim with 5 out of every 100 units sold, they will adjust the unite price to meet their desired profit margin.

There is a cost for warranties built into every item sold, and things like consumer protection laws just spread the cost of all the increased warranty claims to everyone instead of the people that wanted extended warranties.

Consumer protections can be really nice, but people have to understand that the cost of their laws are being passed down to the consumer.
[doublepost=1548809905][/doublepost]Maybe it is. I didn't start posting this stuff about VAT and consumer protection laws to defend Apple, I was just pointing out that there are costs, taxes, and fees that people forget about when comparing prices.

Maybe the difference in cost has to do with regulatory fees, and the cost to do business in that area. Or maybe it is, like you said, Apple just charging more.
[doublepost=1548809974][/doublepost]
Or just pass the cost to the consumer....

It has been happening for a long time now....
If warranty failures were 1 in a 100, that would justify a 1% hike across all sales to compensate. We are dealing with price hikes of nearer 10% in UK/EU.
More likely less sales of AppleCare needing compensated for.
Any reputable consumer watchdog will tell you that company insurance schemes are a scam.
 
I don't think that "real" US$ to € conversion will ever happen [eg. 999$ to 874€] but at least make prices 1:1, so XS will cost 999€ incl. VAT as opposed now to 1149€. Crazy price.
[doublepost=1548843870][/doublepost]
Well. No. Because 1 EUR is 1.15-1.3 USD most of the time. If you add 20 % VAT, which is a norm in almost whole EU, you get to 1.4 - 1.5 EUR == 1 USD. And it ends up… with horrible prices.

I don't care about that really. They need to make prices 1:1 excluding US sales tax and including EU VAT and all is good. What happens in the backstage is not my concern as end customer. If that lowers their revenue they can save money somewhere else and not drain them from non-US customers.
 
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why not lower prices in the US as well? I mean damn, we make up most of their sales.
You answered your own question.
Lower prices were sales are already low, you loose little and might actually gain some market share / customer, lower were sales are high (and if they are high why would you need to lower the price???) and you lose money without much gain. :D
Also the potential marked is more outside the US, as you stated they already sale a lot there, meaning the potential increase is lower than say in a place where they sell very little but the population is large..
 
Tim and co is doing their job, maximise profit until sales is hurt, then lower the profit margin. If sales are doing fine in USA, do ot lower the price and if the sales are hurt elsewhere, leave the market or drop prices. Nothing to be angry about, it market economy.

However, if Apple want to sell more services, sell more devices at a lower price point to get more people into the Apple courtyard.
 
£1450 for the 512GB Xs Max is way too much money.

People here are tightening their belts, the days of charging what you like for something are over.
 
I'm curious when is this price lowering going to happen. I just can't imagine they will just lower the price mid-cycle (I'm watching CZK price).
 
Well. No. Because 1 EUR is 1.15-1.3 USD most of the time. If you add 20 % VAT, which is a norm in almost whole EU, you get to 1.4 - 1.5 EUR == 1 USD. And it ends up… with horrible prices.

it's worse than that…

-> iPhone XS in the US : 999$ (873€)
--> Add french 20% VAT = 1048€
---> But somehow, Apple sells the iPhone 1155€
That's a 107€ (122$) difference.
 
If warranty failures were 1 in a 100, that would justify a 1% hike across all sales to compensate.
No it doesn't, not even close.

Besides, this was just an example to help explain it.
We are dealing with price hikes of nearer 10% in UK/EU.

From most of the examples I have seen, VAT explains most of that and the longer warranties for the other part.

The truth of the matter is that Apple doing business in the EU costs more than the US. Apple increases their prices to reflect the cost of doing business.

If you think Apple should be charging your country less, vote with your wallet and stop buying their stuff.
[doublepost=1548850307][/doublepost]
it's worse than that…

-> iPhone XS in the US : 999$ (873€)
--> Add french 20% VAT = 1048€
---> But somehow, Apple sells the iPhone 1155€
That's a 107€ (122$) difference.
Are you adjusting for consumer protection laws??

What is the warranty there?
 
I listened to the call. Find the quote you’re talking about and we will analyze it. He’s not talking about Western Europe, for sure, as an example because many of those countries set records, like Germany, Spain, and Italy.

You seem to be isolating specific regions in your replies to the contrary; I’m unsure why you’re doing that.


Tim Cook

Steve, its Tim. If you look at what we did this past year, we priced the iPhone Xs in the U.S. the same as we priced the iPhone X a year ago. The iPhone Xs Max which was new was $100 more than the Xs. And then we priced the XR right in the middle of where the entry iPhone 8 and entry iPhone 8 Plus have been priced. So, it's actually a pretty small difference in the United States compared to last year.

However, the foreign exchange issue that Luca spoke of in the call and -- made that difference or amplified that difference in international markets, in particular, the emerging markets which tended to move much more significantly versus the dollar.

And so what we have done in January and in some locations and some products is essentially absorbed part or all of the foreign currency move as compared to last year and therefore get close or perhaps right on the local price from a year ago. So, yes, I do think that price is a factor. I think part of it is that the FX piece.

And then secondly in some markets as I had talked about in my prepared remarks, the subsidy is probably the bigger of the issues in the developed markets. I had mentioned Japan, but also even in this country even though the subsidy has gone away for a period of time. If you're a customer that your last purchase was a 6s or 6 or in some cases even a 7, you may have paid $199 for – and now in an unbundled world it's obviously much more than that. And so we are working through those and we've got a number of actions to address that including the trade-in and the installment payments which I had mentioned as well.[\QUOTE]

Got side tracked and looking for everything specific quote since third transcript link above does NOT contain the full call.
 
it's worse than that…

-> iPhone XS in the US : 999$ (873€)
--> Add french 20% VAT = 1048€
---> But somehow, Apple sells the iPhone 1155€
That's a 107€ (122$) difference.

Are you adjusting for consumer protection laws??

What is the warranty there?

You can read here (2nd paragraph) what's covered by the global warranty in comparison with AppleCare+.
https://translate.google.fr/translate?sl=fr&tl=en&u=https://www.apple.com/fr/support/products/iphone.html

From what I understand, AppleCAre+ covers more thing than any warranty for the same amount of time ans costs 99€.

It looks like the warranty that comes with the iPhone is two years, the warranty that comes with the iPhone in the US is only 1 year.

That could explain the 107€ (122$) difference.
 
No it doesn't, not even close.

Besides, this was just an example to help explain it.


From most of the examples I have seen, VAT explains most of that and the longer warranties for the other part.

The truth of the matter is that Apple doing business in the EU costs more than the US. Apple increases their prices to reflect the cost of doing business.

If you think Apple should be charging your country less, vote with your wallet and stop buying their stuff.
[doublepost=1548850307][/doublepost]
Are you adjusting for consumer protection laws??

What is the warranty there?
The close to 10% hike I was referring to was AFTER accounting for VAT.

What rate of warranty claims do you think Apple has to deal with in UK/EU?
[doublepost=1548858358][/doublepost]
It looks like the warranty that comes with the iPhone is two years, the warranty that comes with the iPhone in the US is only 1 year.

That could explain the 107€ (122$) difference.
For a price increase of basically 10% of the purchase price, what warranty claim rate for the second year do you imagine Apple has to deal with?
 
The close to 10% hike I was referring to was AFTER accounting for VAT.

What rate of warranty claims do you think Apple has to deal with in UK/EU?
[doublepost=1548858358][/doublepost]
For a price increase of basically 10% of the purchase price, what warranty claim rate for the second year do you imagine Apple has to deal with?
It doesn’t matter what the % and you are still missing the point.

Apple can charge what they want, and if you don’t like it, vote with your wallet.

I don’t like what they are charging for the X models, and I am choosing not to buy them.

The 10% you are referring to is around what Apple charges the US customers for a Apple Care + which is the close to the two year warranty that some other places get.
 
So everyone is getting a price cut except the United States? Thanks a lot Tim! Way to screw over your home country.

Because if they cut prices a good chunk of people will never buy a phone on launch day, instead holding out for price cut day.
 
So everyone is getting a price cut except the United States? Thanks a lot Tim! Way to screw over your home country.

Do you want the majority of the world's population to work more for an iPhone than you do?
Does that make you feel good?
Probably.
There are even supposed to be ideologues who fuel this conflict once a cold war of customs duty and walls breaks out.
 
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It doesn’t matter what the % and you are still missing the point.

Apple can charge what they want, and if you don’t like it, vote with your wallet.

I don’t like what they are charging for the X models, and I am choosing not to buy them.

The 10% you are referring to is around what Apple charges the US customers for a Apple Care + which is the close to the two year warranty that some other places get.
The % absolutely matters. You were justifying to another poster that an extra $100+ on the price of an iPhone is to offset cost of warranty claim costs. Some of the Apple Team cheerleaders on here claim that failures are less than 0.1% or 1 in a 1000. (You guys know who you are :) )
So $100,000 extra revenue to cover 1 failure. That doesn't add up. Even if all the processing etc on a replacement that is $600 cost price raises that to $2000.
If AppleCare is $100 per year we are getting closer to the mark. 2 year warranties make AppleCare, if it is even available, not a good option in UK/EU. But Apple want that money they can get out US purchasers.
 
You seem to be isolating specific regions in your replies to the contrary; I’m unsure why you’re doing that.
Yeah, he's specifically talking about markets where foreign exchange has been a huge issue and Apple has "lowered" prices to absorb that difference and return to previous pricing levels. He doesn't even come close to saying "all markets outside the US." He's talking about a few countries, like Turkey where the Lira lost 33%. They are basically saying, "OK, we'll eat that and you can pay us what you paid last year."

I don't see that happening in a ton of countries, particularly not the ones that set records, which were many (Mexico, Western Europe, Korea, Italy, Germany, Spain, Netherlands, Vietnam, etc). Asia Pacific was actually up y/y from a revenue perspective.

So yeah, Tim didn't say anything specific as to which countries, but it's not across the board.
 
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