Apple ripping off international customers

Discussion in 'Apple, Inc and Tech Industry' started by Buggy75, Nov 1, 2007.

  1. Buggy75 macrumors newbie

    Nov 1, 2007
    I was frustrated today looking at the Canadian prices for computers. here are some stats. For a base MacBook. Prices are according to Apple stores in each country and then the exchange rate as of Nov. 1

    Funds - cost - If US pricing - % overcharging.

    US - $1099 - 1099 - 0.00%

    Australia - $1599 - 1199.67 - 33.29%

    Canada - $1249 - 1049.08 - 19.06%

    uk - 699 GBP - 527.72 - 32.46%

    germany - 1049 EUR - 760.72 - 37.90%

    japan - 139800 yen - 126209.6 - 10.77%

    Hong kong - 8600 HKD - 8525.43 - 0.87%

    Korea - 1190000 KR - 993,695.36 - 19.76%

    Of course there is tarrif issues and the like, but NOT in Canada, we have free trade with the US. However these tarifs (if the exist in your country) probably have not changed in the last 2 years as the American Dollar has dropped. Have you seen the price of Apple computers come down in your country in the last 2 years? If not why?

    OK it may be pointed out that the computers are made internationally and therefore are not reflective of pricing in the US, then WHY has the American price not gone up? Is it the international Apple communities responsibility to pay more so that the American Apple community can pay less?

    I am feeling ripped off.
  2. GavinTing macrumors 6502


    Sep 4, 2007
    Local taxes? I think the UK price includes VAT, which is extremely high. :rolleyes:

    Personally, the prices of macbooks go down every update in my country..
  3. dejo Moderator


    Staff Member

    Sep 2, 2004
    The Centennial State
    You may want to educate yourself somewhat about international trade before you start feeling ripped off. There's more to it than simple tariffs and free trade agreements.
  4. CanadaRAM macrumors G5


    Oct 11, 2004
    On the Left Coast - Victoria BC Canada
    Sorry, we have done this subject to death here on MR.

    There is no duty tariff coming into Canada on US manufactured goods under NAFTA. The Apple products however are manufactured in China, so are subject to variable amounts of duty depending what their category is.

    Part of the markup goes to support the Apple staff in the destination country, the cost of producing manuals and packaging in multiple languages, localization, environmental fees, shipping, and national standards compliance.

    In some countries Apple contracts out the country franchise, and the independant company that handles distribution and warranty wants/needs to make a substantial markup.
  5. ~David macrumors regular


    Oct 7, 2007
    Ontario, Canada
    So then my question is... how is it that Leopard is the same price in both the US and Canada?

    It has manuals and packaging which need to be reprinted in English and French as well and all that mumbo jumbo...
  6. Buggy75 thread starter macrumors newbie

    Nov 1, 2007
    have tarrifs etc changed in the last 2 years?

    If the American dollar has tanked in comparison to other world currencies, then why has the pricing not changed in in relation to American pricing.

    Shouldn't the US prices go up? If they are not going up then why? Is Apple keeping them artificially low in the US on the backs of the international community.

    I realise international trade is complex, but I have not seen any movement in pricing structures in the last 2 years despite MAJOR changes in the US $.

    Has there been that dramatic of a cut (20% or more) in import tariffs of electronics into the US in the last 2 years? I can't find it, maybe someone can point out how American pricing has been able to drop in comparison to international pricing.
  7. Virgil-TB2 macrumors 65816


    Aug 3, 2007
    It might have been discussed "to death" but it's still clearly wrong and the OP has a right to be upset.

    All the arguments you present are specious so if that's all this board has managed to come up with while "discussing it to death" then it's still an open question.

    - this markup should not go to the Apple (retail?) staff in the destination country as their wages should be factored into the retail store itself not any products sold through them, so that makes no sense.

    - the same duties apply to imports of Chinese manufactured goods in the US as in Canada, so that makes no sense either. As a matter of fact a lot of the Canadian Apple stores' good are shipped to the US first and then to Canada. Either way, no where near a high enough cost to justify the 20%.

    - are you actually arguing that the cost of writing the manuals and help files in the secondary languages is off-loaded onto the price of the hardware in the country they are translating the manual for? I don't even have to point out how little sense that makes.

    The costs of the software and retail localisation is hardly enough to warrant a 20% hike on all hardware sold to Canada for the last 10 or 20 years. It is in fact a very minimal cost that should be factored into the cost of the OS not hardware, and not old or unrelated hardware.

    Until someone can put forth a realistic, believable argument that specifies exactly what these "higher costs of doing business" are in Canada, we are just taking it on faith and I for one simply don't believe them.
  8. byakuya macrumors 6502a


    Jul 26, 2007
    having bought my Macbook in germany with the highest markup presented above, I must say I feel a little ripped off...since I really don't think that duties, taxes, etc. make such a big difference (35% is a lot...I mean buy three Macs and you get one for free).
    However, as long as Apple sells record numbers with their current price strategy I think they won't change anything...unfortunate as it might be.
  9. CashGap macrumors 6502


    Sep 15, 2007
    Music City, USA
    A google search on "International Manufacturers Currency Strategy" would give you more than you would ever want to read.

    Apple seems to attempt to set level pricing at the time a major product is released, then "ride it out" for better or for worse until the next major update.

    As good a strategy as any. During times of rapid movement, you get a distortion. This one favors Apple (the seller of computers) and hurts Apple (the purchaser of computer components). I'm sure they are fully hedged to minimize their risk.
  10. Kinnaird macrumors newbie

    Nov 13, 2007
    Duties and taxes etc.

    Look if the duties taxes etc. were an issue the price would still change if the dollar that hard to understand. This is price gouging because the opportunity has presented itself. The company is making 20-25% more now than a year ago for the same product, pretend whatever you like, its sleasy.
  11. Sun Baked macrumors G5

    Sun Baked

    May 19, 2002
    People complain about the price of gas changing too quick, and you want to tie the price of computers to the monetary markets.

    What a silly idea... especially for the times the fluctuations are against you.

    Right now it is in your favor, cannot wait for you to protest that Apple should be raising the prices because you a reaping a windfall if the dollar rebounds.
  12. richkent72 macrumors regular

    If you buy .Mac in the UK Apple includes VAT at 20% in the total price:eek:. UK VAT is 17.5% and has never been 20%:mad:.
  13. Mac24 macrumors newbie

    Aug 30, 2007
    Abbotsford/Harrison Hot Springs
    Other major retailers (Wal-Mart, Zellers) have adjusted prices to reflect the weakening US dollar and better reflect the actual cost to the customer due reduced purchase cost to the retailers.
  14. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002
    Retailers. Apple is a manufacturer, and only incidentally a retailer. They, and everybody else, will adjust their prices as competition demands in any given market. If you want to experience the full value of your appreciated local currencies, then you have to travel to a place where you can spend a currency other than your own. This has forever and always been the case.
  15. iBlue macrumors Core


    Mar 17, 2005
    London, England
  16. Mac24 macrumors newbie

    Aug 30, 2007
    Abbotsford/Harrison Hot Springs
    What a pile of horse dung, do you work for Apple? They are making money off the back of those who support their product (their customers) because of the weak US dollar and for no other reason.
  17. saltyzoo macrumors 65816


    Oct 4, 2007
    And here I was thinking everybody was trying to make a profit and be successful. I guess it's only Apple.
  18. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002
    Right, that must be the explanation.
  19. djellison macrumors 68020

    Feb 2, 2007
    Pasadena CA
    Just a thought - is it Apple ripping us off, or everybody?

    For example, I can by a Macbook-equiv PC laptop for £350 - so a Macbook is essentially twice the price of equiv PC hardware.

    Is the same true in the US?

  20. IJ Reilly macrumors P6

    IJ Reilly

    Jul 16, 2002
    They aren't ripping off anybody, because everybody has the choice to buy or not buy. If you think a product is overpriced and you buy it anyway, is it still overpriced? Obviously not.
  21. Mac24 macrumors newbie

    Aug 30, 2007
    Abbotsford/Harrison Hot Springs
    Well, I agree with you there, hence I will stick to my PC hardware and program upgrades and let the Mac rest until prices come into line, my decision.
  22. Rodimus Prime macrumors G4

    Rodimus Prime

    Oct 9, 2006
    I find it funny but because so many people like shoving this on people (and then turn around and complain about the pricing internationally)
    If you think the price is a rip off the smart thing to do is DONT BUY.

    Really prices also are relative to your country. Do not expect a drop 20-30% in the price that is a huge drop and would upset the market. part of prices is relative to only your country.

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