Apple Raises Prices on Several Products in Many Countries Amid Strong U.S. Dollar

[antonis]

Do you expect them to sell the laptop that's worth $2000 U.S. for 2000 Pesos too?? The Canadian dollar is down like crazy, how can you not understand Apple's logic here???

Actually, I wasn't referring to the price topic only, as it is not the only "ugly" part of this machine. If it was, I could overlook it since I'm using Macs for more than 15 years. Regardless, I think that everyone understands "Apple's logic". It's not hard, if we look at their price tags of all their devices. Believe me, there's no one left on the planet by now, that doesn't understand Apple's logic, anymore.

 

[The Mercurian]

Really bad move if you ask me - they lost sales in other territories will eclipse the number of Americans buying abroad.

 

[Speedy Dingo]

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.

No idea about VAT. Here in Australia we have GST(goods and services tax) and its 10% for pretty much everything, which never fluctuates or changes between regions. So the sole reason for our new and much higher prices would have to be put down to the exchange rate.
Wasn't aware Apple had raised prices in the US in the past - As much as we've been subjected to? $200-$500?

 

[SMIDG3T]

Wut? Up $350 for Canada? Really?? Why only now?

What is happening at Apple? Seriously? It's as if the company's main focus right now is more on aesthetics and more $$$. I mean, from the "diverse" emojis, the animated maps bullcrap, then we have a 12-inch laptop that's obviously just spray-painted garbage, overpriced watches???

I've always chosen the Mac over PC for 5-ish years now ever since I laid my hands on my first mbp coz I think OSX has always been way better for me personally, but damn, if this continues, I think I'm jumping ship next time I need an upgrade.

I know exchange rate isn't Apples fault but I already feel like most of their products are overpriced as it is. Not to mention how buggy ios and osx have been lately.

I've been an Apple guy for awhile but with how far Android has come and the strides Microsoft has made I might think about jumping ship next time I have to upgrade.

Goodbye then.

 

[Poochi]

Very nice. Not buying ANY Apple product in the foreseeable future.

Money saved. Thank you Apple.

 

[HenryDJP]

No idea about VAT. Here in Australia we have GST(goods and services tax) and its 10% for pretty much everything, which never fluctuates or changes between regions. So the sole reason for our new and much higher prices would have to be put down to the exchange rate.
Wasn't aware Apple had raised prices in the US in the past - As much as we've been subjected to? $200-$500?

Well I'm sure you're referring to the Macs in regards to those price hikes. If I remember the MacBooks went up about $100. That may not be much to people in other countries but it costs so much more to live in the U.S. For example, Canada gets free healthcare. In the U.S. it's insanely expensive to get any healthcare or prescription drugs.

 

[Bibgibs]

Out of curiosity, did Apple raise wages for its staff around the world?
Legit question, I simply don't know, but I assume I'd have read about this by now on here?

Glassed Silver:mac

Why would Apple raise people's wages from another country due to the change in the US dollar? Do Apple workers in the UK or Australia get paid in USD? No. Apple raises wages based on the change in the currency for that region.

 

[e93to]

In Canada, external USB DVD drive is now $99. I think I paid $69 when I got my late 2012 iMac.

 

[Marrakas]

Apple is so friggin greedy it's disgusting.
We were already paying way more for their products in my country compared to the US (we're talking about $600 more on the top of the line MBP), but since the dollar is so strong they decided we could pay even MORE. and raised it with another $200.

All the while they are showing quartery results with income in the billions after taxes. Disgusting.

I know Apple doesn't run a charity, but there should be a limit to a companys greed at some point. Learn from google.

 

[marccollet]

I don't care to much about the prices...Apple dropping important pro focus is! Aperture? Gone! Line-up missed the MacPro during the session yesterday. What's next in the shift of focus from experts to the general public? They most certainly know how to strategically apply "the longrail" by Christian Andersson.

 

[gnasher729]

First, why are you insulting people ?

Second, 1449 € = 1558 $ US, so you are telling me that you have 259 $ of taxes, around 20%, in the US ?

I didn't insult him. I reported my impression that the German education system must have gone down considerably since I left it, if Germans post that kind of nonsense nowadays.

Now I will _not_ comment on your post. Too dangerous.

----------

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?

In the case of digital goods, if I have an app in the App Store that sells for $0.99 in the US store, leaving the prices unchanged would mean that I get less money if Australians download my app.

Does Apple charge you more? Once you take into account 10 percent tax that gets added on all prices in Australia? The two computers that I checked (Australian vs. US price) were cheaper in Australia once you took out the 10 percent tax.

 

[andreyirra]

Wanna talk about high prices? Come to Mexico. The unlocked 16 gb iphone has always been 500 dollars right? The same as an iPad, right?

Well, the iPhone always cost one and a half iPad and since the release date the 6 plus costs 2 iPads.

 

[TallManNY]

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

That seems like you've got the right numbers. It is a difference, but it isn't a huge difference. I believe Apple, and many other companies, put a bit of buffer in for currency fluctuation. Also, you have to factor in that, from my understanding, the cost of doing business in Europe is higher than in the U.S. across the board. Are Apple employees paid more in Germany than in the U.S.? They might be. Are there more difficult regulations? Probably.

In any case, there is a difference, there has often been a difference. But once you run the numbers with the U.S. sales tax included (or with the VAT excluded) you get to a fairly modest price difference. Licensing costs for IP and other regulatory costs might make up for more of it than you realize. How about just electricity prices to operate the store? I suspect they are much cheaper in the U.S. than they are in Germany or much of the world.

 

[gnasher729]

Thanks Seth. Why don't you also add that in the U.S. one would have to pay 8% on the $1,299 price?
If the price difference is so high, then folks will continue to grab the items when they come and visit as tourists. For some countries that still makes sense. But with the strong U.S. dollar, I suspect we will see less of that. And being a foreigner does not exempt you from paying sales tax here in the U.S.

Well, you can get a refund on the sales tax.

However, if I take for example a MacBook back home to the UK, I have the choice to smuggle that MacBook into the country and become a criminal, or to pay 20% import tax. Which makes it the exact same price as in the UK. Except that I now have a MacBook with the wrong charger, the wrong keyboard, and I have none of the consumer rights that I would have if I bought it in the UK.

(It may be worth it for the cheaper iPads which are below the limit where you have to pay import duties).

 

[TallManNY]

Wanna talk about high prices? Come to Mexico. The unlocked 16 gb iphone has always been 500 dollars right? The same as an iPad, right?

Well, the iPhone always cost one and a half iPad and since the release date the 6 plus costs 2 iPads.

No, it has never cost the same as an iPad. I believe it has always cost $649 (and that is what the 6 currently costs) compared to the iPad's $499. The iPad with cellular ability has cost closer at $629, or something like that. But still the iPhone was more expensive. And keep in mind you have to pay sales tax in most states on top of that price.

Are you looking at iPad Air 2 prices in Mexico? Or one of the older iPads?

 

[gnasher729]

It's strange how people complain about the oil companies when they make 11% margin while Apple is making over 39%!

The difference is that with oil prices I have the choice between paying them or freezing in the winter. With Apple goods there are tons of competitors. If they have 39% gross margin that is only because people think the products are worth the money, because Apple cannot force anyone to buy their products.

 

[Psychopulse]

I've been using Macs since 2005, they've always been expensive, same with every Apple product, but what is happening recently is ridiculous. Golden watches? Golden laptops? Prices higher than ever? Think different? More like Think Greedy :/

 

[oneshotpro]

everyone has to pay 'mericun money. $3000 for a laptop is insane.

 

[BerMuc]

Excellent move. I would desert my history, heritage and culture for that amount too.

Who said that I did any of it?

 

[AlexH]

The USD has been gaining strength for a while. Just wait until the flood of cheap Euros hits the Eurozone (their version of QE). It's gonna get pricier for Europeans.

 

[bsolar]

1449 € = 1558 $ US, so you are telling me that you have 259 $ of taxes, around 20%, in the US ?

Best way is to remove the included taxes from the prices (since Apple has no control on them and doesn't get that money either) and compare the "tax excluded" price:

• In Germany the listed price is 1449 EUR with 19% VAT included, so 1217.65 EUR tax excluded, which convert into 1302.89 USD

So it's in the ballpark of the US price (1299 USD), but your mileage may vary:

• In Italy the listed price is 1499 EUR with 22% VAT included, so 1228.69 EUR tax excluded, which convert into 1314.70 USD.
• In Switzerland the listed price is 1399 CHF with 8% VAT included, so 1287.08 CHF tax excluded, which convert into 1287 USD.

Of course the final price will be usually higher in Europe, but this is more due to the local VAT beign usually higher than Apple getting a higher profit margin. As far as I understand in the US the average taxes are around 10% and in Europe it's around 20%, so obviously the price to the consumer after taxes will be usually higher in Europe. In countries with lower VAT it might converserly be actually lower than in some US states.

 

[MagicWok]

However, if I take for example a MacBook back home to the UK, I have the choice to smuggle that MacBook into the country and become a criminal, or to pay 20% import tax. Which makes it the exact same price as in the UK. Except that I now have a MacBook with the wrong charger, the wrong keyboard, and I have none of the consumer rights that I would have if I bought it in the UK.

The UK harbours millions of criminals Hope you never buy clothes in the USA and bring them back, and become a criminal by not paying import duties & VAT.

Jibes aside, you would make some savings if you claim back the sales tax on the item as you mentioned. Laptops are actually, import duty free. That being said, you should still pay VAT on the item you bring back which is a cool 20%, if you don't try to pass it off as your own personal equipment (as most do tbf...). Not that I'm endorsing that anyone participates in tax evasion.

 

[brdeveloper]

Apple manufactures in yuans and charges in dollars. Nice!

 

[TallManNY]

Well, you can get a refund on the sales tax.

However, if I take for example a MacBook back home to the UK, I have the choice to smuggle that MacBook into the country and become a criminal, or to pay 20% import tax. Which makes it the exact same price as in the UK. Except that I now have a MacBook with the wrong charger, the wrong keyboard, and I have none of the consumer rights that I would have if I bought it in the UK.

(It may be worth it for the cheaper iPads which are below the limit where you have to pay import duties).

In other countries where the sales tax or important tax is much higher, it is fairly common for tourists to get in some shopping in the U.S. I understand that regular flights of Chinese fly to Minnesota to the Mall of America and just load up and then return to China in a couple of days. I know when the Euro was very strong against the Dollar, Europeans would add significant amounts of shopping to their trips to New York. I've even heard that some folks saved so much money on luxury items that it paid for the plane ticket and nice NY hotel room.

I was hanging out with some folks visiting from Sweden for a few days and they estimated that restaurant prices in NY were half the cost of comparable meals in their city back home.

Basically this price difference isn't just an Apple thing.

 

[IJ Reilly]

As for your hamburger from wikipedia

Today prices are somewhat lower in Canada for at least one item: the Big Mac Index shows that in January 2006 a Big Mac cost $3.15 in the States and only $3.01 in Canada.

The "Burgernomics" articles was from The Economist, not wikipedia. The Economist has been compiling the "Big Mac Index" for around 30 years as a way of comparing the valuations of currencies based on identical locally-produced goods, which is really the only way it can be done. Not sure where you get 2006, since the current index is for 2015. I don't remember what the exchange rates were that far back, but in 2011 (the last time I was in Canada) one USD bought one CND. Everything was expensive for Americans traveling in Canada and Canadians were getting bargains traveling to the US, just as you'd expect. Not so much now.