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Don't get me wrong: I'm the Canadian author of this article and would absolutely love if Apple retained the same prices regardless of the U.S. dollar conversion rate. However, it seems unfair to suggest Apple is evil for increasing prices when this is simply a matter of currency fluctuations that are outside of its control. The company was generous by leaving the previous prices untouched for so long as the U.S. dollar continued to strengthen. If and when the U.S. dollar becomes weaker again, the international prices will go back down again as happened in July 2011.

Joe, do you remember how long did it take for Apple to decrease those prices and whether did they do it for 2008-2009 and 2005-2008 periods as well?
 
To raise prices due to a strong dollar is disingenuous at best. Except for the Mac Pro, none of the products are made in the USA, and to top it off none of the money made overseas is brought back to the USA because of tax law. The dollar has no material affect on Apple's position.

Perhaps those foreign currencies get converted to the dollar for the income statement for the annual report. But the dollar is not affecting Apple's cost structure and will only affect the shareholders if and when the money is brought stateside.

The goal is rough price parity. It has nothing to do with costs. The US dollar is the reference currency used by most global companies. Even oil is priced in dollars.
 
hopefully my MBP should last a couple of years.. I'm not buying any more overpriced products anytime soon.
 
Ouch, $499 Australian Dollars for base model Sport Watch.
Or $24,000 for the most expensive watch!

However take out our GST and then a straight exchange makes it $346 USD, 3 cheaper than the U.S.

What?! Cheaper in Australia? As an American I'm outraged. Outraged I tell ya.
 
Correct me if I'm wrong, but I think what most (European) people are complaining about is the overall cost difference including VAT what I believe has been calculated the wrong way several times now. So let me try:

Old Josef wants to buy a new MacBook (let's say in Germany). Now he has to pay 1449€ (EUR) (already including VAT.)

Old Jack now wants to buy the same new MacBook in the US. He has to pay $1299 (USD). At the counter he has to add VAT (~8%). That makes the MacBook cost 1299*1,08 = $1403,92 (USD)

Those $1402,92 (USD) convert at the actual exchange rate (of: 1€ (EUR) = $1,07 (USD)) to 1311,14€ (EUR)

Summarized: The new MacBook in the US for 1311,14€ is 137,86€ (EUR) or $147,51 (USD) cheaper to the one in Europe for the customer.

And that is the thing people in Europe complain about. (correctly as I feel with them)

markus

Thank you ! At least somebody understands what I'm saying ! ;)
 
- Free movie and music from AppStore (Home Alone, some random iTunes Festival music), Google Play (Pacific Rim, Fast and Furious, ColdPlay latest album, tons more)

when was pacific rim free? i only got fast&furious and gravity for free. maybe its regional.

first world problem
 
Nope. I really don't think it is.

??

Of course, it's not an insult to say that people are so dumb that they don't understand what he is saying !

I would say : before judging somebody, try to understand his opinion...

I just can't support that kind of person who consider they are right and that anybody who doesn't agree with his statement is dumb.
 
Thank you ! At least somebody understands what I'm saying ! ;)

I'd say the problem isn't really Apple, it's protectionist policies and local-national laws regarding copyright, electronics, and other import add-ons. I live in HK and ID say it's pretty comparable to buying Apple products in Delaware, New Hampshire, or Oregon--US states without sales tax. But if I hope over to Mainland China or Taiwan---Apple products are taxed up!

Good thing HK is basically the most capitalist city in the world...
 
Correct me if I'm wrong, but I think what most (European) people are complaining about is the overall cost difference including VAT what I believe has been calculated the wrong way several times now. So let me try:

Old Josef wants to buy a new MacBook (let's say in Germany). Now he has to pay 1449€ (EUR) (already including VAT.)

Old Jack now wants to buy the same new MacBook in the US. He has to pay $1299 (USD). At the counter he has to add VAT (~8%). That makes the MacBook cost 1299*1,08 = $1403,92 (USD)

Those $1402,92 (USD) convert at the actual exchange rate (of: 1€ (EUR) = $1,07 (USD)) to 1311,14€ (EUR)

Summarized: The new MacBook in the US for 1311,14€ is 137,86€ (EUR) or $147,51 (USD) cheaper to the one in Europe for the customer.

And that is the thing people in Europe complain about. (correctly as I feel with them)

markus

But the Germans have to pay 19% VAT (which is already in their price) I think which means, you actually pay in Germany more taxes than in the USA not more money for Apple?

Apple wont suck up the higher tax and sell it cheaper in Europe to match the price + 19% tax to price + US tax
 
$22.000 for the high end apple watch edition here in Canada. What a disgrace. I can buy a freakin' car with that kind of $.
 
The horrible exchange rate is the single reason I will not be buying an Apple Watch... $519 for the 42mm sport watch? No thanks. I have been using Apple products almost exclusively (where possible) for 15 years, but Apple has been leaving a bitter taste in my mouth. Like others I may be looking at other options come upgrade time. Apple makes products that are high quality and that's for certain, but their prices are beginning to become ridiculous.

Oh yeah, because the stupid exchange rates are Apple's fault. People need to stop pretending that Apple is their friend and will maintain prices (while losing money) because they like you so much. It's a business. :rolleyes:

----------

It's not as great as people hype it to be!

I would rather live in the U.S than crappy Canada or the UK.
 
It's funny how they won't lower the price though when the opposite is happening (like when the Australian dollar was nearly 1:1 with the US Dollar).

Actually, the Australian dollar was valued at 1.05 US for neatly 6 months 2 to 3 years ago, but Apple didn't lower prices they just screwed Australians.
 
Every single Apple Laptop went up by $200 in Australia sadly :(

Apple should start paying its proper income tax here if it wants to jack up prices (although I do acknowledge prices are somewhat dependent on the exchange rate). The non Retina Macbook went up to $1549 - which is well above the currency conversion and our GST... not overly fair.

I'm appalled at these new prices. For example, the 15" rMBP which had no changes to hardware went from $2499/$2999 (depending on tier) to $2799/$3499. That's an extra $300/$500 for the exact same machine you could've bought last week at a cheaper price. And then there's the old 2012 MBP which was $1349 and got jacked up to $1549 - I'm sorry but thats a lot of money for 2012 tech... You could've bought yourself a 13" rMBP for an extra $50 at $1599 just 2 days ago. I know our currency isn't the best here in Australia, but these prices are a little too rich even for us - it's great for apple's back pocket, but not for everyone else who's wages didn't go up along with Apple's prices. I work within retail and we're an Apple reseller, and it'll be interesting to see how sales change with these new prices. The 13" MBA is our number 1 seller as its $1199 price tag was good for most people, including students, but now you'll be paying $1399 for the same tier, which might not seem like a lot, but we'll see how it goes. $1699 for the 256GB version got steep though when it used to cost $1399.
Next time I see the US $ dip lower than ours, I expect Apple to raise prices in their home town. Only fair right? ;)
 
Correct me if I'm wrong, but I think what most (European) people are complaining about is the overall cost difference including VAT what I believe has been calculated the wrong way several times now. So let me try:

Old Josef wants to buy a new MacBook (let's say in Germany). Now he has to pay 1449€ (EUR) (already including VAT.)

Old Jack now wants to buy the same new MacBook in the US. He has to pay $1299 (USD). At the counter he has to add VAT (~8%). That makes the MacBook cost 1299*1,08 = $1403,92 (USD)

Those $1402,92 (USD) convert at the actual exchange rate (of: 1€ (EUR) = $1,07 (USD)) to 1311,14€ (EUR)

Summarized: The new MacBook in the US for 1311,14€ is 137,86€ (EUR) or $147,51 (USD) cheaper to the one in Europe for the customer.

And that is the thing people in Europe complain about. (correctly as I feel with them)

markus

You forgot to add increased costs of setting up operations of EU facilities, local wage differences, increased warranty standards, compliance costs, etc.

These all have an effect on your local price as a consumer.
 
Next time I see the US $ dip lower than ours, I expect Apple to raise prices in their home town. Only fair right? ;)

But isn't the VAT also part of the price hikes? Since Apple is in the U.S. there is no VAT for them to deal with......and they have raised the prices on products in the U.S. before.
 
Actually, the Australian dollar was valued at 1.05 US for neatly 6 months 2 to 3 years ago, but Apple didn't lower prices they just screwed Australians.

I remember that and it ticks me off that when exchange rate scenarios are reversed, prices don't get lower here. The second there's sign of a weaker Aussie dollar, the first thing that seems to go up in price are App Store Apps - which to me is ridiculous. It's digital goods which aren't being distributed into stores and there's no change to how they're accessed - so why charge us more?
 
I also feel...

apple could have given us all a heads up a few weeks ago and let us know they planned on raising prices...

Example. Leica gives its potential customers notice in advance about an impending change of price on the cost of lenses.

Apple. Not nice to its customer base. Booooo...
 
It's strange how people complain about the oil companies when they make 11% margin while Apple is making over 39%!
 
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