Apple Watch Hermès UK Prices Are Extortionate!

Discussion in 'Apple Watch' started by Brookzy, Oct 7, 2015.

  1. Brookzy macrumors 68040

    Brookzy

    Joined:
    May 30, 2010
    Location:
    UK
    #1
    The Apple Watch Hermès UK site has recently been updated with prices.
    • Double Tour: $1250, £1150 - $509 markup
    • Single Tour: From $1100, £1000 - $420 markup
    • Cuff: $1500, £1350 - $566 markup
    Of course, the UK site includes 20% VAT, but even comparing both at tax free there is a significant price difference.

    Yes, all Apple stuff is more expensive in the UK, but this is a biggest markup I've seen Apple do!

    Shame...
     
  2. JayLenochiniMac macrumors G5

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  3. Newtons Apple macrumors Pentium

    Newtons Apple

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    Mar 12, 2014
    Location:
    Jacksonville, Florida
    #3
    I would guess the Hermes watch is "surposed" to be a status symbol. SO what good would it be if it did not cost a lot!
     
  4. Brookzy thread starter macrumors 68040

    Brookzy

    Joined:
    May 30, 2010
    Location:
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    #4
    Both kind of missing the point...

    I'm talking about the price difference.

    It is not supposed to be more of a status symbol in the UK than in the States, so that's not a reason for it costing more here.
     
  5. Newtons Apple macrumors Pentium

    Newtons Apple

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    #5
    I get the point just fine. All of your stuff costs more so yes, it is MORE of a status symbol because people will look at it and think, WOW he paid more!:rolleyes:
     
  6. JayLenochiniMac macrumors G5

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    #6
    Not sure what you're talking about. $1250, $1100 and $1500 are US prices and are roughly equivalent to the UK prices.
     
  7. Brookzy thread starter macrumors 68040

    Brookzy

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    Location:
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    #7
    Enlighten me, then...

    What's the average US sales tax?

    A quick Google suggests 9.45%.

    That's still a 20-25% markup on the Cuff. That's not roughly equivalent.

    Why do I bother posting on here, 90% of threads are met with self-righteous people shouting "wrong!".
     
  8. abdulkar.im macrumors 6502a

    abdulkar.im

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    #8

    I feel you pain brother, this country is a rip off full stop!!
     
  9. OllyW Moderator

    OllyW

    Staff Member

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    #9
    Using the Single Tour as an example, you have to pay 120% extra for the Hermès branding and strap in the USA (based on the 38mm SS with sport band costing $549-$49 = $500 for the watch without a band).

    In the UK you pay 127% extra (£479-£39 = £440 for the watch without a band). We aren't paying a much bigger markup for the Hermès edition (approximately £32 extra), it's just we are already paying a lot more than the Americans for the Apple Watch in the first place.
     
  10. MagicBoy macrumors 68040

    MagicBoy

    Joined:
    May 28, 2006
    Location:
    Manchester, UK
    #10
    Eh? Taking just the Hermes prices :
    $1250 = £816. That's a 17.5% markup excluding the VAT at current market exchange rates.

    That's not roughly equivalent by any stretch of the imagination.
     
  11. testcard macrumors 68020

    testcard

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    #11
    Exchange rate is roughly £1.0 equivalent to $1.5.
     
  12. mac666er macrumors regular

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    Location:
    San Francisco, CA
    #12
    All,

    I think there is a miscommunication here. Just so everyone understands:

    US Prices in USD:

    • Double Tour: $1250
    • Single Tour: From $1100
    • Cuff: $1500

    UK prices in USD:

    • Double Tour: $1900
    • Single Tour: From $1680
    • Cuff: $2300

    Yeah, I'm with you mate, that is a huge mark up, even with a 20% VAT. I am guessing Apple is hedging against the USD getting stronger for the next 12 months.

    I used to live in the UK and the pricing of US goods, especially electronics, is one thing I DO NOT miss. (I do miss the UK though!)
     
  13. JayLenochiniMac macrumors G5

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    #13
    Okay, I misread and thought we were looking at Euro.

    Well, I suppose you can blame UK excessive customer protection law for that. There ain't no free lunch!
     
  14. cambookpro macrumors 603

    cambookpro

    Joined:
    Feb 3, 2010
    Location:
    United Kingdom
    #14
    Enlighten me here, I'm not trying to make a snide remark, just curious. Why do you think greater consumer protection laws means greater prices? Greater cost of administration and labour or something else?
     
  15. KPOM macrumors G5

    Joined:
    Oct 23, 2010
    #15
    Compare the tax free prices:

    US: $1100 for the Single Tour.
    UK: £833 for the Single Tour (£1000/1.2) or $1276 based on the current exchange rate of $1.532.

    So the differential is $176 or 16% for that model.

    What is the statutory warranty? In the US, the Hermes Watch gets a 2 year warranty (unlike the regular Watch which gets a 1 year warranty). Your consumer protection laws are more strict than ours. Plus you get "free" health care and greater other social benefits than we do here. All that gets factored into the cost of labor, real estate, etc., and ultimately consumer products.
     
  16. KPOM macrumors G5

    Joined:
    Oct 23, 2010
    #16
    Since the Apple Watch Hermes is sold only in select locations, the sales tax is easy to figure out. In NYC it is 8.875%. In LA it is 9%. In San Francisco it is 8.75%. Miami wins the "low-price" contest at 7%. If it ever comes to Chicago or Dallas (the other cities with Hermes stores that oddly didn't get the Apple Watch Hermes), it would be 10.25% and 8.25%, respectively.
     
  17. KPOM macrumors G5

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    #17
    Higher levels of returned products, higher administrative costs dealing with repairs, etc.
     
  18. Enygmatic macrumors 6502a

    Enygmatic

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    #18
    I don't get this argument, for people living in the UK and getting paid in £.
     
  19. Polaroid macrumors 6502a

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    Oct 1, 2013
    #19
    But they are Apple watches not Hermes :p
     
  20. JayLenochiniMac macrumors G5

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    Location:
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    #20
    This. If you don't think manufacturers pass these costs to the customers you are sorely mistaken.

    It's also why Apple has jacked up the AC+ deductibles and OOW replacement costs relative to the rising component costs, due to their liberal policy of swapping out for the littlest things (at least in the US) and certain customers abusing it.
     
  21. Brookzy thread starter macrumors 68040

    Brookzy

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    UK
    #21
    The whole cost of business in the UK being higher thing doesn't really wash.
    1. Our 'consumer protection laws' provide nothing too special, and only a tiny proportion of consumers cite them anyway. Apple's goodwill usually exceeds these laws and we can assume this goodwill is broadly constant in US and UK making it irrelevant to the debate.
    2. The cost of 'business' (think tax, rates and charges) is low for Apple in the UK because - on paper - they don't do business in the UK! Everything is avoided via low-tax Ireland.
    3. Someone mentioned UK advantages like 'free' healthcare. No. That's paid for good and proper - with higher taxes relative to the US. Not sales taxes, other taxes. And we've established the tax free prices are still significantly marked up (again, to keep things crystal clear, these higher taxes are not incident upon Apple because of their tax avoidance).

    Again, irrelevant.

    This would only be relevant if people in the UK swapped out stuff more often than people in the US, which we have no reason to assume.
     
  22. Mr.C macrumors 601

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    Location:
    London, UK.
    #22
    I lived in the US for 12 years before coming back to the UK about 13 years ago and I one of the things I missed out of many are the cheaper prices there. Yes they do have to pay for medical care there but most employers will either pay for the private insurance or at least subsidise it but overall the cost of living is lover over there and my money certainly went further over there then it does here. I do try to buy things from the US where possible but with the latest technology especially Apple stuff if I want it at launch it's much easier to buy it here so I end up paying the higher prices.
     
  23. KPOM macrumors G5

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    Oct 23, 2010
    #23
    Lots of products are more expensive in the UK than the US. It's not just Apple. There are multiple reasons. For instance, minimum wages are higher in the UK. I believe you need to pay anyone over 24 a "living wage" which is about $13/hour. Real estate costs more in the UK than in most of the US. There are additional labor regulations (it's more difficult to fire people, you need to give more sick leave and vacation time, etc.). All these things add up.
     
  24. tann macrumors 68000

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    Apr 15, 2010
    Location:
    Nottingham, England
    #24
    Compare with uk prices before vat! The difference is there but not as much as you think! Yes more in the UK but if it's an issue try to get one from the USA.
     
  25. douglasf13 macrumors 65816

    Joined:
    Jul 2, 2010
    #25
    I used to spend some time on Sony camera forums, and our UK members would really complain, because the Sony camera and lens prices were the same in the UK and US, despite the different currencies. Now THAT was a real rip off for our UK friends. I'm not sure if that's still the case, though.
     

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