Yup, as a small business that manages an array of websites for my clients, and utilizes an array of services and providers, many of these services are paid in USD. The poor exchange rate has dramatically increased my costs, and yet I can not easily pass that along to my clients. So I need to absorb those differences, which means it comes straight out of my pocket. I even need to work a second job just to keep cash in the bank. I really hope the economy stabilizes soon.
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Apple Raises Mac Prices in Australia, Brazil, New Zealand, Norway, Malaysia, Mexico, Thailand and Turkey
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Yup, as a small business that manages an array of websites for my clients, and utilizes an array of services and providers, many of these services are paid in USD. The poor exchange rate has dramatically increased my costs, and yet I can not easily pass that along to my clients. So I need to absorb those differences, which means it comes straight out of my pocket. I even need to work a second job just to keep cash in the bank. I really hope the economy stabilizes soon.
Don't you love it when about 20 people reply to your post in a rude manner when I already understood what's wrong after the second reply?
Realistically, it's not really an increase in price, just an increase in the local currency version of that price. For those of us using those local currencies, it is a price increase, which is the difficult pill to swallow.
However, if we take a closer look, here's what we see...
Base model iMac - $1099 USD
The same iMac in Canada costs $1399 CAD, but if you convert the USD value to CAD, it's actually $1413.50 CAD, so that means the listed Canadian price is slightly cheaper than the US price. Just a psychological factor because the sticker price numbers are bigger.
EDIT - my observations may be limited to Canada. When I do the same conversions for Brazil and New Zealand, I see very big differences in price. Not cool for those poor folks.
However, if we take a closer look, here's what we see...
Base model iMac - $1099 USD
The same iMac in Canada costs $1399 CAD, but if you convert the USD value to CAD, it's actually $1413.50 CAD, so that means the listed Canadian price is slightly cheaper than the US price. Just a psychological factor because the sticker price numbers are bigger.
EDIT - my observations may be limited to Canada. When I do the same conversions for Brazil and New Zealand, I see very big differences in price. Not cool for those poor folks.
Either I was not clear or you both missed my point.
Apple produces computers in a premium price range. Although a price hike might be an issue for some and very annoying for even more, I fail to see how this could ever constitute a true crisis to anyone (with a crisis I mean an event that has a material adverse impact on your life). Even if an increase would suddenly propel the prices outside of one's acceptable range, there are enough possibilities to keep functioning with cheaper hardware from other manufacturers. No end-consumer's existence is in danger when Apple ups their prices a few percentage points.
Just for ***** and giggles, I looked at the base Mac Pro prices.
The US price is $2999. Adding VAT, that should be $3748.75 in my country, but it's a little over $4196. So they make about $450 extra just on the base configuration, and even more for the ones people actually buy (assuming Mac Pro is actually bought in the real world). The iMac prices are not far below that, and the adjusted UK price is 10% below ours.
Apple has been historically more about margins than market share. Jobs made that often clear, but he was also clever enough to know that he couldn't stretch that indefinitely. He would as high as he could , but never to the point where he would alienate his customers. And many times he would decide to back down for the sake of slightly increasing market share ( he lowered the first iphone prices, and surprised everyone with ipad prices ). Basically he never took things for granted.
Cook seems to do take things for granted, and willing to keep stretching the margins as high as possible, indefinitely, as if nothing bad can happen to Apple. Stretch it until it breaks, because there is only so much people can take.
Besides the facts about the iPhone price reduction and iPad pricing this post is swimming in assumptions without factual base.
That they have the audacity to increase the price of a 2 years old machine (Mac Pro) just adds insult to injury.
The least they could do as long as they don't deem it worthy of an upgrade, again, is lower the price (in the US and then possibly keep it the same elsewhere to "adjust for exchange rates", neglecting that they get to BUY parts and labor cheaper too... *cough cough*), because those components don't have the same value today as they did 2 years ago.
You know, that's how the rest of the industry (has to) operate.
But Tim knows that people will put up with everything. (pretty much a paraphrase of his own words)
Glassed Silver:mac
The least they could do as long as they don't deem it worthy of an upgrade, again, is lower the price (in the US and then possibly keep it the same elsewhere to "adjust for exchange rates", neglecting that they get to BUY parts and labor cheaper too... *cough cough*), because those components don't have the same value today as they did 2 years ago.
You know, that's how the rest of the industry (has to) operate.
But Tim knows that people will put up with everything. (pretty much a paraphrase of his own words)
Glassed Silver:mac
This is absolutely insane. I truly hope Apple products just rot in their stores here in Brazil.
R$19.000,00 for a US$ 1999,00 Macbook Pro? Are you freaking kidding me?
Currency rate is 1/3.8 right now. Even if we multiply US$ 2000,00 x 4, thats R$ 8000,00.
Even if Apple was taxed ONE HUNDRED %, it would still be R$ 3000,00 less than what they are asking for.
Black market will prevail. It was already very rare to see someone actually buying a Macbook Pro or iMac from a Brazilian Store.
R$19.000,00 for a US$ 1999,00 Macbook Pro? Are you freaking kidding me?
Currency rate is 1/3.8 right now. Even if we multiply US$ 2000,00 x 4, thats R$ 8000,00.
Even if Apple was taxed ONE HUNDRED %, it would still be R$ 3000,00 less than what they are asking for.
Black market will prevail. It was already very rare to see someone actually buying a Macbook Pro or iMac from a Brazilian Store.
Apple is probably the most penny pinching company I've ever seen, and yes that includes Walmart. If you're willing to hold back on a relatively new innovation for $.015 of every $100, then you're the cheapest company in the world. Today, Apple raised their prices in many countries, when it didn't need to. Take a small ding on your profit margins and move on--this is why Apple has such a bad reputation among a most consumers.
For those of you who say this isn't Tim Cook's doing, shame on you. Even if you're a SVP or an EVP, you need to go through the CEO first before a company decision is made. I bet you this is Luca Maestri's and Tim Cook's decision. I'll tell you, if I could easily root Apple's iMessage system and emoji's into an Android or Windows phone, I'd stop buying every Apple product I buy now. I get sick of seeing the company screw loyal customers for stockholders that sit on their ass all day and trade over a computer to make money.
For those of you who say this isn't Tim Cook's doing, shame on you. Even if you're a SVP or an EVP, you need to go through the CEO first before a company decision is made. I bet you this is Luca Maestri's and Tim Cook's decision. I'll tell you, if I could easily root Apple's iMessage system and emoji's into an Android or Windows phone, I'd stop buying every Apple product I buy now. I get sick of seeing the company screw loyal customers for stockholders that sit on their ass all day and trade over a computer to make money.
Don't forget NZ prices include the additional cover mandatory under NZ law, which covers the computer for its "lifetime" (at least five years), so you really need to factor that in when comparing prices. Add Applecare (slightly more cover, but for only three years) and you're getting a very close match in price.
Not to mention iPhone prices!
I bought my last couple of iPhones outright, and would then go on a cheap plan, but these days, it's much cheaper just to go on a 24 month contract with no upfront cost.
I remember buying the iPhone 5 64GB for about ~$950 AUD, a 64GB iPhone 6S is now $1299.
I'm also really happy I got my 512GB rMBP last year before these huge increases came through.
I bought my last couple of iPhones outright, and would then go on a cheap plan, but these days, it's much cheaper just to go on a 24 month contract with no upfront cost.
I remember buying the iPhone 5 64GB for about ~$950 AUD, a 64GB iPhone 6S is now $1299.
I'm also really happy I got my 512GB rMBP last year before these huge increases came through.
CGA does not apply to any goods purchased for business use. It is also very vague as to what constitutes the expected life of a product, and can require taking the supplier to court to get resolution. I don't think it is appropriate to include it in price comparisons.
I wish my salary would fluctuate against the U.S dollar. Bring on the Surface Book, it's time for a change.
Well based on first hand experience in NZ.
My sons Macbook died, a new mother board was needed. It was just shy of 3 years old.
Took it back into Noel Leemings, argued with them over the CGA , took them a written claim under the CGA, and then talked to Apple Singapore about it and 2 weeks later a new motherboard was fitted by the local service agents all at the cost of $0.
Noel lemmings was a **** to deal with the sales droid there was completely powerless to do anything, kept trying to get me to rings head office at my expense etc, Apple was brilliant. I got phoned updates from when the board left Singapore, when it arrived in Sydney, When it was shipped from Sydney, when it arrived in Auckland, when it arrived at my service agent, when the the job was done and again a month later to see if everything was OK. Heads and shoulders the best service I have had.
And its not the only item I have had repaired for free under the CGA, nor the only company I have claimed against. I have also helped a few friends with their claims.
Depending on the brand, how much you paid, etc computers can be up to 5 years under the CGA as a realistic expectation of life. Some stores will tell you the CGA is the same as the 12 month warranty so you should buy Applecare, I tell them they are breaking the law by giving out patently false information and they shut up quick. I would NEVER buy an extended warranty, for anything !
The CGA follows the product, so even if you buy the laptop 2nd hand and there is no physical damage (i.e. it was dropped, got wet, etc) then the next owner has exactly the same rights under the CGA as the original owner.
Just the same as NZ exporters were having problems when the NZ dollars was higher.
Ok I'm just gonna be fair and say that Australian price will never be on par with US price because a) Australian GST and b) as far as I know there's no "US price" because different states have different tax systems I think. Regardless, Aussies always have to pay more for everything even when factoring in GST it's ridiculous.
Yeah, go shopping in the USA, its an eye opener. You see goods advertised for $10, and when you go to buy it all sorts of taxes get added onto the cost. If you are not a local who knows what the taxes for each product category is, and have a calculator then you have no idea what the real price is.
At least in NZ what you see is what you pay, no hidden costs/taxes.
There is a VERY simple solution. Buy it in the USA and ship it.
You are allowed to do this, no one is forcing you to buy it locally. But be warned, outside of Apples international 12 month warranty you have no consumer rights.
Interesting....I've heard some horror stories about some CGA claims being dragged out. I'm happy to hear that Apple takes their CGA responsibilities seriously. I have been debating whether to buy AppleCare for my daughters MacBook (I have not bought AppleCare for any other devices), based on your experience I might not.
What kind of logic is this? Apple has a big presence locally here and yet you're implying that I should go the hardest way i.e. importing a laptop from the US at the risk of losing out 24 MONTHS local warranty + shipping fee? I like Apple products but I'm not gonna go that extra several miles for a company that seems to pinch every penny out of its customers.
Just like most things in this world it's not sudden, but when it comes it comes. Mac sales were already in decline. One doesn't have to be a genius to extrapolate further.
If the hardware was premium as the price is i would keep my mouth shut, but it's far from premium. R9, 24 GB fusion drive, soldered ram on smaller iMac, no discreet GPU, you can go on an on.
Not true (I work for a global US company in EU):
- You can hedge against currency fluctuations, and
- You can simply suck up the losses due to currency fluctuations (it's called "currency headwinds" during earning calls).
BTW: I'm pretty sure that Apple, like other US multinationals, is keeping a lot of its cash in local currencies OUS anyway in order not to pay the high US corporate tax rates on profits...