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

Nermal said:
There was hope here in NZ that this Australian enquiry would result in better prices here too. That's certainly the case with Adobe; Creative Cloud is now at price parity between NZ and US (I haven't checked other Adobe products).
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They normally go hand in hand, so I really hope that a global pricing restructure takes place - it's completely disproportionate.
 
cosmichobo said:
Should Apple be able to price their products however they want? Not in my opinion
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I personally think Apple engage in all sorts of dodgy practices. They are a big company and like other big companies they want to milk their customers as much as possible. I don't trust them and I don't like them. I buy Apple products when they meet my needs and at the right price.

In a free market sellers can set what ever price they want. If the state starts to get involved in controlling prices then it leads itself down the road to autocratic market systems as seen in the likes of the Soviet Union.

I am not suggest Australia is a marxist state.
 
inlinevolvo said:
Ridiculous. It's called a free market. We don't tell you how to price your fosters.
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Hey! I don't mind Logitech charging 50% more in Aus for their keyboards or Apple, and the other hoods slugging us a shirtload of dosh just because we like British designed Apple computers - Sir Nifty Ives. I don't mind the yanks cheating in the America's cup. I don't mind the things America does stomping all over the world in it's ten league boots. Cool! But you can't slander our Camel piss - Fosters. That is below the belt. Phew!
 
jdmagoo1 said:
The price differences between the us and aus apple stores have been talked about enough but consider this for Adobes Creative Suite Master 6 Collection

- Australia costs $4,334.
- US costs $2599.
- return flight to LA flying Virgin costs $1147.58

Therefore it's cheaper to fly to LA return and buy the software on come out with over $500 savings

I think the enquiry is justified
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Of course, once you add GST upon re-entry (if you are an honest person and don't try dodge it), that margin diminishes... but yes, there are plenty of examples where buying direct from the US, for any number of tech products, is cheaper than buying local.
 
Apple Announces New Pricing For California

Californian residents will now be able to buy Apple products with a 25% discount as a privilege for living in the wonderful state in which the juggernaut empire began.

Tim Cook announced the move via a press release, citing his desire to share the wealth with his fellow Golden State compatriots. Upon confirming proof of address, citizens of the State of California will automatically receive one quarter off the standard retail price for any Apple goods via both bricks and mortar Apple Stores and the online store.
 
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Let's be honest here: This is Chinese style protectionism designed to score points with voters (just by reading most of these comments, it seems to be working).

I wonder if Gillard is going to introduce a couple more "price inquiries" targeting German car makers, foreign pharmaceutical companies etc. A few more of these and Australia's international business reputation will be tarnished. Protectionism always has popular support because people want cheaper stuff. In the long run though, everyone is screwed. The government is supposed to be more responsible than this.

I'm sure if you abolished all taxes completely, people would back that too. Probably not the most responsible thing to though.
 
mortom01 said:
Fosters is owned by SABMiller, which I think you'll find is South African.

Further, would you, a proud American, pay $2.19 for a song? Reasonably priced you think?
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No, but I think 1.39 usd is too high too.

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Scrivener said:
Hey! I don't mind Logitech charging 50% more in Aus for their keyboards or Apple, and the other hoods slugging us a shirtload of dosh just because we like British designed Apple computers - Sir Nifty Ives. I don't mind the yanks cheating in the America's cup. I don't mind the things America does stomping all over the world in it's ten league boots. Cool! But you can't slander our Camel piss - Fosters. That is below the belt. Phew!
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Haha, best response I've gotten for my brainless comment.
 
Whose whinging now?

Wow I'm deeply disturbed by all the Apple adoration and 'can do no wrong' in this thread, poor poor Apple getting beaten down by that evil government.

First and foremost, this is NOT an issue that has suddenly appeared TODAY. This whole enquiry business has been going on for a couple of years now, it is just coming to a head. Just because as of today Apple prices are pretty in line with the US, does not mean this has always been the case - people making noise about this, either on the Internet or through their local constituents has been the cause of things improving. Those in the EU etc telling us not to complain about such a small difference could learn a thing or two here... Or you know, continue to support Apple 'to the death' and pay whatever they ask, up to you!

Secondly, this isn't targeting Apple, it is targeting a lot of brands doing similar tactics. If they are SO right and justified in doing what they are doing, why did Adobe suddenly drop their pricing YESTERDAY to be more in line with the US? Hmm? Oh yeah, they were just feeling generous all of a sudden.

Apple have done exactly the same as Adobe, but more gradually. They KNEW this was coming (see above) and have gradually lowered their pricing.

Fact is, Australia had been paying far too high a price for imported electronic goods and now, we as a people want to know why. Sony are particularly bad as an example, take a look at how much an Alpha A77 costs here compared to the US. Yet since this enquiry started they launch their A99 and you know what, suddenly it is in virtual parity with the US. Bizarre, they must cost much less to ship because they have a bigger number on the box and shipping companies like bigger more rounded numerals!

Apple aren't the worst offenders (though there have been times when they have been particularly bad), so their practices are being brought into question - no one has said that ANYTHING will change. But they certainly aren't alone, this Macrumors article focuses on them, because let's face it - it is an Apple site!

As an Australian, I AM tired of paying too much for things. Apple is the least of my worries, but I am glad that at least this enquiry is making companies pull their heads in somewhat.
 
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baxterbrittle said:
Wow I'm deeply disturbed by all the Apple adoration and 'can do no wrong' in this thread, poor poor Apple getting beaten down by that evil government.
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Seriously? You need to find more important things to be "deeply disturbed" about than the 10% price fluctuation of non essential electronic devices.

And no one is saying Apple can do no wrong, what I see people saying is that they support the current world economic model of free trade and capitalism on this level. Government mandated prices are available in parts of the world, move there, that's your choice as a free person.

That you and many others here are confusing something as important as global economics with some sort of misplaced love of Apple is deeply disturbing me. If we ever want to function as one world economy some knowledge and education needs to spread.

As an Australian, I AM tired of paying too much for things. Apple is the least of my worries, but I am glad that at least this enquiry is making companies pull their heads in somewhat.
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THAN MOVE! Seriously. Do you know why I live outside of Seattle WA USA and not in down town? Because the cost of living is too damn high. I'd love for it to be cheaper to live there, but the reality is that a seller will ALWAYS sell (regardless of how big they are) for as much as the reasonably can, and a buyer will always buy for as low as they reasonably can. Downtown costs so much because there are more people with more money than downtown can sustain, so the prices go up.

If you want Apple prices to drop, stop buying them, or move someplace where the products are sold cheaper.

Good day, sir.
 
LightSwitch said:
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!
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Exactly.

I get the fact that hardware is slightly more expensive in Aus than in the US and I don't think anyone else in Aus really cares about hardware pricing either, but software and digital downloads ... why are they so much more expensive??

I am really happy that the Aus govt. has called these companies in for a "please explain" as they have shirked the issue on previous occasions.

I am sure Aussies, and indeed people from many countries will be interested in listening to the official reasons these companies give for the price differential in iTunes TV Shows, movies and music.

Adobe pricing is totally out of control compared to the US. Surely this is just gouging ... I just can't think of any other reason as to why a download of Photoshop is so radically different.

Hopefully this action from the Aus govt. will also stir other countries consumer watchdogs into action and question pricing on behalf of it's consumers.

Good on the Australian Parliament for forcing these companies to be more transparent as to why their pricing policies are they way there are. They had their chance to respond before but haven't and now they are being forced to do so publicly or face legal consequences. This is a win for all consumers, not just Aussie consumers.

Maybe Adobe do have a legitimate reason for charging such exorbitant prices for a digital download of Photoshop or Apple have a reason that the same music track costs more compared to the US and it's totally justified ... but if they do ... let's hear it.

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GermanyChris said:
Looks like it's starting to work..

http://www.afr.com/p/technology/adobe_cuts_australian_prices_after_BgBXyFaCrXRGNIrS1M2fNN

One for the good guy's
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Didn't take long, did it? 1 day after being summoned !!
 
deang001 said:
Exactly.
I am really happy that the Aus govt. has called these companies in for a "please explain" as they have shirked the issue on previous occasions.

I am sure Aussies, and indeed people from many countries will be interested in listening to the official reasons these companies give for the price differential in iTunes TV Shows, movies and music.
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So are you just hoping for your curiosity to be eased, or do you want to see your government force companies to sell at a price they don't want to sell at? And why would any company want to show the world their pricing and distribution costs? For what it is, Apple is able to sell the iPad rather inexpensively compared to competitors, and I'm sure the competitors would LOVE to see where Apple spends every penny, in hopes that they can mimic or improve on such structures. I fail to see my any company, when asked this, wouldn't politely tell the one asking to GFT.

Adobe pricing is totally out of control compared to the US. Surely this is just gouging ... I just can't think of any other reason as to why a download of Photoshop is so radically different.
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You can't think of any other reason? Let me throw a few out there off the top of my head:
  • Digital Distribution while cheaper, is still not free. DataWarehouses and Bandwidth cost money. Maybe servicing Aus costs more money?
  • Licenses fees. If a company has to license a technology or name from a local company in order to do business in Aus.
  • Lawsuits. Maybe Aus laws or its people promote lawsuits that cost a product on average more money.
  • Governments making silly legal inquiries. When a companies lawyers have to show up to court to defend their business, that costs the company money in that market. You should expect that cost to be reflected in that market's new sale price.

now they are being forced to do so publicly or face legal consequences. This is a win for all consumers, not just Aussie consumers.
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How is this an automatic win? What if they come back and the price is 100% justified, and they tack on another 1% to the price of all goods because of having to defend against this legal action? How would that be better? And it's certainly not a win for me, as Adobe doesn't make anything that I think is worth the money. And you know what I do about it? I use other products, like GIMP, which falls within reasonable value for me.

In other news, I'm going to walk down to my local small corner store and demand that they tell me why beer costs 30% more there than at the big grocery store a couple miles away.
 
baxterbrittle said:
As an Australian, I AM tired of paying too much for things. Apple is the least of my worries, but I am glad that at least this enquiry is making companies pull their heads in somewhat.
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Who's to decide what's "too much"? The same government who imposes taxes and expects businesses and people to suck it up? If you think Apple products are overpriced, don't buy them. Companies try to sell products for as much as they can, and consumers try to buy them for as cheap as they can. That's how a market works. Apple isn't a monopoly (not even close). They lowered their MacBook Air and MacBook Pro prices today, quite significantly, without any grandstanding government investigations to prod them.

Also, unless we're talking commodities like oil, prices don't fluctuate based on every FX rate change. Should American companies operating in Australia pay their workers in Australia less than they did 5 years ago because the Australian dollar is worth more than it was 5 years ago? After all, Australian employees are more expensive now because of it.

In the US, we pay a lot more than the rest of the world for healthcare and education (textbooks have special US-only pricing), to name two items. A lot of these services are "free" or subsidized in other countries. Some of that cost gets passed along in the form of taxes, which make their way into pricing decisions.
 
The Australian Government aren't threatening to control Apple's (or MS, or Adobe, or any other) prices - they want an explanation of those prices.

They wont control them - but if it turns out there are no reasons other than profit margins, then maybe they will be shamed into lowering their prices.
 
cosmichobo said:
The Australian Government aren't threatening to control Apple's (or MS, or Adobe, or any other) prices - they want an explanation of those prices.

They wont control them - but if it turns out there are no reasons other than profit margins, then maybe they will be shamed into lowering their prices.
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The thing is, I don't imagine they can legally force these companies to break down their cost of business analysis either. They can make them show up in court, but I'm not sure why any of them would divulge sensitive information about their business practices.

If I were running a business, making a bunch of sales, and someone came up to me and said "Why do you charge as much as you do?", I'd smile and respond "Because."
 
Earendil said:
So are you just hoping for your curiosity to be eased, or do you want to see your government force companies to sell at a price they don't want to sell at? And why would any company want to show the world their pricing and distribution costs? For what it is, Apple is able to sell the iPad rather inexpensively compared to competitors, and I'm sure the competitors would LOVE to see where Apple spends every penny, in hopes that they can mimic or improve on such structures. I fail to see my any company, when asked this, wouldn't politely tell the one asking to GFT.



You can't think of any other reason? Let me throw a few out there off the top of my head:
  • Digital Distribution while cheaper, is still not free. DataWarehouses and Bandwidth cost money. Maybe servicing Aus costs more money?
  • Licenses fees. If a company has to license a technology or name from a local company in order to do business in Aus.
  • Lawsuits. Maybe Aus laws or its people promote lawsuits that cost a product on average more money.
  • Governments making silly legal inquiries. When a companies lawyers have to show up to court to defend their business, that costs the company money in that market. You should expect that cost to be reflected in that market's new sale price.



How is this an automatic win? What if they come back and the price is 100% justified, and they tack on another 1% to the price of all goods because of having to defend against this legal action? How would that be better? And it's certainly not a win for me, as Adobe doesn't make anything that I think is worth the money. And you know what I do about it? I use other products, like GIMP, which falls within reasonable value for me.

In other news, I'm going to walk down to my local small corner store and demand that they tell me why beer costs 30% more there than at the big grocery store a couple miles away.
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Absolutely, I'd love the Australian govt. to put pressure on software sellers to come in line with US pricing IF there is no real reason other than gouging to sell at such inflated pricing !!!

Besides licensing fees, I don't think any of the reasons you list have any merit what so ever ... especially the last reason ... but lets see.

If they come back and the price is 100% justified ... great. At least we understand why. I doubt very much there is any justification and it will be interesting too see how this plays out.

As a consumer we have a right to get prices as low as possible and if this leads to lower pricing (as is already beginning with Adobe) then all power to any inquiry.
 
Lancer said:
Sorry if this was posted...

http://www.theage.com.au/technology...es-questions-over-pricing-20130214-2eetr.html

"Adobe chief dodges questions over pricing..."

He kept dodging the question and referring to their cloud service which magically they dropped the price yesterday :rolleyes:

Still he didn't answer why its cheaper to fly to the US and buy CS6 and fly home and have over $600 more in your pocket!
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Clearly Lancer, you are getting all emotional about this. I think you need to just calm down and remind yourself - you're not an American citizen, so you have to pay through the arse for anything that has come from America.

That is what the majority of US based forum members are saying, isn't it?
 
cosmichobo said:
Clearly Lancer, you are getting all emotional about this. I think you need to just calm down and remind yourself - you're not an American citizen, so you have to pay through the arse for anything that has come from America.

That is what the majority of US based forum members are saying, isn't it?
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I'm not getting emotional, I was just posting a relevant story on the topic.

I'd look at buying CS6 online direct from the US when the need arises. Set up one of those exchange accounts to allow me to use my AU address and credit card. No need to fly to the US.
 
Lancer said:
I'm not getting emotional, I was just posting a relevant story on the topic.

I'd look at buying CS6 online direct from the US when the need arises. Set up one of those exchange accounts to allow me to use my AU address and credit card. No need to fly to the US.
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;) I know, I know.

When I bought my TAM back in 97 it didn't take too many emails to find a US vendor happy to ship to Australia, despite it being against Apple's regulations... Shop around and I'm sure you'll find ways to buy the software from the US without needing to jump through too many hoops.
 
NedBookPro said:
This:

http://www.smh.com.au/technology/te...es-questions-over-pricing-20130214-2eetr.html

is what most people are unhappy about in Australia. As the article says:

"t's still cheaper to fly from here in Sydney to Los Angeles, buy [Adobe's Creative Suite Master 6 Collection] there, and come home. By doing that I'd save $601, and I'd get Virgin Australia frequent flyer points, too."

How does one explain that away????

.
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They are over charging customers outside the US, plan(e) [no pun intended] and simple.

FYI I just downloaded the demo copy of PS CS6, works great on my new iMac, with I could afford to buy it. Even at the US price.
 
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