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

[Paddle1]

The iPhone 4S was $649 in Canada at launch so Apple does adjust prices. Also some items were selling cheaper before this change than they are in the US. In fact some still are, the iPhone 5c is about 80 USD cheaper in Canada.

It is still annoying though.

 

[DavidRiverman]

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.

I agree with your analyse, the only thing that pissed me off is the way Apple increase their prices.

For example : MBP 13 retina

yesterday's price : 1299 € - VAT = 1082.5 € ie 1174.07 USD (exchange rate on yesterday)
today's price : 1449 € - VAT = 1207.5 € ie 1296.16 USD (exchange rate on today)

Difference = 122.09 USD

Am I totally wrong, or ?

 

[philosopherdog]

The Canadian economy under Harper has remained tethered to oil. So, you want stupid policies then get ready to pay more for everything. It's going to get a lot worse. The dollar is predicted to go down as low as 60 cents! So these current prices might just be a bargain.

 

[IJ Reilly]

Overseas the prices typically include about 20% VAT. In the U.S. they do not include 8% sales tax which must be paid in most states. For folks complaining, please put those numbers in and make your argument.

FWIW, no state to my knowledge levees an 8% sales tax, though a few are close, and many cities and counties add on another 1-2%. I believe three states are sales tax free. Either way, sales taxes charged at point of sale in the US befuddle many who travel here who expect the price on the product to be the price they pay at the cashier, as it is in their countries.

In any case, tax issues aside, the real problem with the way a lot of people approach this issue is by not understanding that they earn and spend their own currencies. What a product would cost in some other currency is a purely theoretical exercise, unless they travel to that country and convert their currency.

 

[PhiLLoW]

1,449 Euros is exactly the same price as the $1,299 in the USA, once you remember to add VAT. My god, is your educational system going down in the last twenty years. I was taught to think before I open my mouth, don't they teach that anymore?

Where exactly did I mention VAT or taxes? Where exactly did I compare the EU prices to the US prices?

You seem to be one of those guys who think they are so clever talking about educational systems even though you know nothing about my educational background nor understand what I've written.

The prices are a joke in my opinion. Why? Because Apple even increased their margins this year. They know exactly what people want to pay and add a little bit more because people going to buy it anyway.
In my opinion the prices are a joke because the prices of tech reallly gone downhill over the last year. I personally hoped for a killer feature or price.

And by the way. Don't they teach you about freedom of speech anymore?

 

[xyion1]

I agree with your analyse, the only thing that pissed me off is the way Apple increase their prices.

For example : MBP 13 retina

yesterday's price : 1299 € - VAT = 1082.5 € ie 1174.07 USD (exchange rate on yesterday)
today's price : 1449 € - VAT = 1207.5 € ie 1296.16 USD (exchange rate on today)

Difference = 122.09 USD

Am I totally wrong, or ?

OK, so in the US.

Yesterdays Price = 1,299
Todays Price = 1,299

It seems like you were getting a deal compared to the US yesterday doesn't it? This is due to the currency fluctuations which Apple has now corrected. Sorry it didn't go in your favor like it has been for the past year or so...

(this doesn't even take into account the increase customer protections in Europe...US still has to pay for AppleCare for 2 years of protection, etc so that would be an extra $249 for US, bringing the price up to $1548 + tax).

 

[brdeveloper]

The mais issue is that Apple base their prices in dollar, even if their profits are kept overseas and they manufacture most products in China.

 

[RebelScum]

Good timing

I bought my Oct2013 RMBP from the refurb store at the beginning of February. 2.8 i7 (TB to 4.0), 16gb, 1tb, dual graphics w/2gb Nvidia.

This price bump means I saved almost exactly a thousand dollars.

Even now, the 2.6ghz model (the step below mine), otherwise similarly spec'd, is going for $200 more than I paid.

All hail the Refurb store.

 

[RightMACatU]

Well Apple will feel some pain by exporting technology with a high USD. I would not be surprised if this hurts their profit margin over the next year.

A $1,750 Ultimate MacBook was a good deal, but at $2,100 many will pass or wait until absolutely necessary.

$0.02

 

[TallManNY]

FWIW, no state to my knowledge levees an 8% sales tax, though a few are close, and many cities and counties add on another 1-2%. I believe three states are sales tax free. Either way, sales taxes charged at point of sale in the US befuddle many who travel here who expect the price on the product to be the price they pay at the cashier, as it is in their countries.

In any case, tax issues aside, the real problem with the way a lot of people approach this issue is by not understanding that they earn and spend their own currencies. What a product would cost in some other currency is a purely theoretical exercise, unless they travel to that country and convert their currency.

The combined state and local sales tax works out to about 8%. You are right that a few states with relatively small populations have zero sales tax. But most U.S. citizens are paying a sales tax of about 8%. I'd actually guess it is a bit higher than that on average since California, NY and Texas are all above 8%. See link.

http://taxfoundation.org/article/state-and-local-sales-tax-rates-2014

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Well Apple will feel some pain by exporting technology with a high USD. I would not be surprised if this hurts their profit margin over the next year.

A $1,750 Ultimate MacBook was a good deal, but at $2,100 many will pass or wait until absolutely necessary.

$0.02

You don't mean profit margin, you mean sales volume. Agreed though that this raise in prices will decrease the volume of sales. But each sale will be much much more profitable than if they hadn't done the increase.

 

[DavidRiverman]

OK, so in the US.

Yesterdays Price = 1,299
Todays Price = 1,299

The US didn't change but the French one : +125 € (without VAT), that's all.

Ok, the USD get stronger but I think that Apple take advantage of the situation...

 

[576316]

FYI... $69 Apple TV discounted ,, only for the U.S.. : that sux. its still $109 here..... We deserve as much a discount as any.

Seems Apple likes to neglect allot of things if it will make themselves more better, across all there products.

Nope. It's now £59 here in the UK. Down from £99.

 

[cfedu]

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.

The cost to by a Macbook air in Canada would be the same in 2012 when the Dollar was at parity as it is now with the Canadian dollar devalued 25%. There was no disadvantage for an American buyer in Canada in 2012 and there is no disadvantage today.

For Canadians, since the dollar went down so fast there has been no time for wages to catch up. The purchasing power of Canadians has decreased as goods are now more expensive. There is no Parity right now, Canadian purchasing power has diminished. Purchasing parity has nothing to do with what I said about the parity of the american and Canadian dollars.

 

[EEMAN13]

All I see is a bunch of crying coming from people all over the world, particularly countries with huge welfare programs.

Yes, currency fluctuations are the stated reason for the Apple price increases, but I can guarantee you that the cost of doing business in said countries had just as much of an effect on the price increases.

There is a lesson to be learned. The more government regulations and tax increases (whether sales tax or on corporate tax) you vote for, the more increases you will see for the price of goods and services. Period. It has been this way, it is this way, and it always will be this way.

There actually is a cost for "free" healthcare, "free"-ways, etc, etc, etc. And guess what, the more services your governments designate as a "human right" and provide for "free" or subsidize, the more you will be paying for all goods and services to pay for these "human rights".

 

[KdParker]

Solution is really simple.Avoid buying Apple products for time being

Or, if you live in the states, let the dollar get stronger and by all your Apple products from Canada.

 

[IJ Reilly]

The combined state and local sales tax works out to about 8%. You are right that a few states with relatively small populations have zero sales tax. But most U.S. citizens are paying a sales tax of about 8%. I'd actually guess it is a bit higher than that on average since California, NY and Texas are all above 8%. See link.

On average it is hard to say. I live in a California county with a 7.5% rate and in a city with no additional levee. The largest no-tax state is Oregon.

 

[KdParker]

All I see is a bunch of crying coming from people all over the world, particularly countries with huge welfare programs.

Yes, currency fluctuations are the stated reason for the Apple price increases, but I can guarantee you that the cost of doing business in said countries had just as much of an effect on the price increases.

There is a lesson to be learned. The more government regulations and tax increases (whether sales tax or on corporate tax) you vote for, the more increases you will see for the price of goods and services. Period. It has been this way, it is this way, and it always will be this way.

There actually is a cost for "free" healthcare, "free"-ways, etc, etc, etc. And guess what, the more services your governments designate as a "human right" and provide for "free" or subsidize, the more you will be paying for all goods and services to pay for these "human rights".

This is completely laughable and complete nonsense.

There is absolutely no correlation between these price adjustments and whether of not a country has healthcare or 'free' anything.

 

[IJ Reilly]

The cost to by a Macbook air in Canada would be the same in 2012 when the Dollar was at parity as it is now with the Canadian dollar devalued 25%. There was no disadvantage for an American buyer in Canada in 2012 and there is no disadvantage today.

For Canadians, since the dollar went down so fast there has been no time for wages to catch up. The purchasing power of Canadians has decreased as goods are now more expensive. There is no Parity right now, Canadian purchasing power has diminished. Purchasing parity has nothing to do with what I said about the parity of the american and Canadian dollars.

The two dollars at a 1:1 a exchange rate has nothing whatsoever to do with being in any sort of parity. You only think it is meaningful because both units of currency have the same name. In fact it is an arbitrary comparison.

The CND was very strong vs. the USD for a few years. That was not the norm, but a function of the weak USD worldwide. The rate of exchange is now much closer to recent historical averages. Prior to about ten years ago the USD had hardly ever bought less than $1.25 CN.

 

[iFitzgerald]

While I understand the currency issue (even though they do get extra money in between - two words - Ireland; Taxes), my income hasn't changed, so buying an Apple product has become more expensive PERIOD. In countries like Portugal, 300€ is more than HALF the minimum wage. It's not Apple's fault, but of course people get upset!

 

[SgtPepper12]

All I see is a bunch of crying coming from people all over the world, particularly countries with huge welfare programs.

Yes, currency fluctuations are the stated reason for the Apple price increases, but I can guarantee you that the cost of doing business in said countries had just as much of an effect on the price increases.

There is a lesson to be learned. The more government regulations and tax increases (whether sales tax or on corporate tax) you vote for, the more increases you will see for the price of goods and services. Period. It has been this way, it is this way, and it always will be this way.

There actually is a cost for "free" healthcare, "free"-ways, etc, etc, etc. And guess what, the more services your governments designate as a "human right" and provide for "free" or subsidize, the more you will be paying for all goods and services to pay for these "human rights".

Posts like that make it so hard to take Americans seriously.

 

[LordVic]

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.

don't you love how we're all being told now in Canada that we're going to see higher prices on goods and services due to the strong US dollar,

yet when the US dollar was weak and Canadian Dollar was on par, we weren't getting cheaper items.

this is nothing but a money grab.

 

[paysdoufs]

Exactly there's no connection... it's just an opportunistic excuse. When the US dollar goes down again the prices won't go down.

I was astonished that I had to go all the way to page 3 before I would find someone to call Apple's bluff. And here's some more food for thought.

- Just because there's currency fluctuation with appreciation of the $US doesn't mean that someone paid in €, $CN or $AU suddenly has more disposable income. So Apple's greed might very well simply hurt their sales OUS.

- (Worldwide) Sourcing has become less expensive for Apple due to the stronger $US. Obscuring this fact while simultaneously raising prices OUS is pretty shabby on Apple's behalf.

- Other big US multinationals simply accept & absorb currency fluctuations. Apple certainly has margins that are comfortable enough to do so as well...

 

[cfedu]

The two dollars at a 1:1 a exchange rate has nothing whatsoever to do with being in any sort of parity. You only think it is meaningful because both units of currency have the same name. In fact it is an arbitrary comparison.

The CND was very strong vs. the USD for a few years. That was not the norm, but a function of the weak USD worldwide. The rate of exchange is now much closer to recent historical averages. Prior to about ten years ago the USD had hardly ever bought less than $1.25 CN.

Bla bla bla..


http://www.investopedia.com/terms/p/parity.asp


DEFINITION OF 'PARITY'
1. In general, a situation of equality. Parity can occur in many different contexts, but it always means that two things are equal.

2. The official value.

3. In an exchange market, when all brokers bidding for the same security have equal standing due to identical bids.

INVESTOPEDIA EXPLAINS 'PARITY'
1. For example, in the foreign-exchange market, currencies are at parity when their exchange rate is exactly 1 to 1.

2. In other words, the par value.

3. When parity occurs, the market must determine which bidding broker will obtain the security by alternative means. Therefore, the winning bid is typically awarded by random draw.





Can you answer me one simple question?

You said parity was a myth, I bought a macbook air computer in 2012 for $999 Can or $999 American since the currency was close to parity. Is it a myth that I paid that amount?


today the same computer is $899 american and $1099, please explain how the first situation is not parity and the second one is?

Parity is a simple definition, its an exchange rate.

 

[Pablo90]

in CH I think the new MBPr and Macbook start at 1399CHF, a 100chf increase..
Which is BS because 1CHF=1USD and it sometimes even fluctuates at 1CHF=1.05 USD so...

PS: to be fair, I bought my MBP 13" in 2010 (the then-new model) for 1499CHF and prices have decreased over the years. most recently 1299chf so I wouldn't say they don't adapt prices when the dollar depreciate...BUT in this case it's BS because the CHF is strengthening even more than the USD

 

[mKTank]

Parity is parity!! when 1 US dollar =1 Can Dollar I call that parity.

On your second point you are completely wrong. If everything in Canada was 30% more expensive when the Canadian dollar was at Par with the american how can there now be parity when the difference is even greater. Using your math things should be more like 50% more expensive now.

I don't know where you live but here in Manitoba, Apple's prices have always, consistently been 50-100 dollars more for iDevices, 100+ for Macs for Canadians. Even when the Canadian dollar was strong.