Price Advice Conversion Rate LUNACY

Discussion in 'Buying Tips and Advice' started by hibernian56, Oct 23, 2012.

  1. hibernian56, Oct 23, 2012
    Last edited by a moderator: Oct 23, 2012

    hibernian56 macrumors newbie

    Jul 18, 2008
    Has anybody else noticed the price gouging going on at Apple in the different stores, I was almost going to pre-order the iPad Mini for my beloved (I have a great little Nexus 7 I'm happy with) and saw the price was only $329, oops I'm on the US store again, better change to the Irish one..

    €339 Euros ($439)!!! Then I checked the UK store, £269 ($428)!!!

    Are they off their game or what? Apple "assemble" their products for Europe here in Cork, Ireland after shipping from the slave factories in China. As far as I know they also box some product for the US market here too.

    So can somebody please explain to me WHY they price gouging?

    I started to get even more annoyed when I looked at the cost of a Mac Mini basic model, $599 in the US store, £499 ($795) in the UK store, and a whopping €659 ($855) in the Irish store.

    So apparently it costs more money to sell products in Ireland (and the rest of Euro con tries) than to ship them to the UK or the US... Or it would seem that we are subsidising the US market.

    Their old €1=$1 policy was taking the piss, this is daylight robbery.
  2. lucasfer899, Oct 23, 2012
    Last edited by a moderator: Oct 23, 2012

    lucasfer899 macrumors 6502


    Sep 23, 2012
    When I saw the price of the iPad mini on the us site I was excited thinking that in england they would be £199, but no.
    What a rip off.
  3. snberk103 macrumors 603

    Oct 22, 2007
    An Island in the Salish Sea
    Partially - but not the whole difference - is that the US store shows the prices without taxes. My understanding is that the EU/UK stores show the price with taxes. I assume the Irish store too.

    Also, there may be an import duty imposed when they are 1st shipped into the UK/EU/Ireland.

    Plus.... Apple has to provide a longer warranty in the EU due to differences in consumer protection laws... that extra warranty cost is probably being added.

    But - mostly - Apple does this because they can. They know what each nation's citizens are willing to spend, and price accordingly. If the Irish prices are higher, it's because the Irish will continue to buy at that price.

    We have the same problem in Canada. Our prices are also pre-taxes, and there is no duty since we have a free-trade deal with the US. Yet, and despite the Canadian dollar being stronger, we pay 5% to 15% more for our Apple products - because Canadians are (on average) wealthier and therefore we are willing to pay more for the same computer.

    But... we aren't being dinged as badly as you. So, you have my sympathies...
  4. rbrian macrumors 6502a


    Jul 24, 2011
    Aberdeen, Scotland
    The UK price includes 20% VAT, the US price doesn't include tax. Subtract 20% and it's only $20 more, which pays for the much better warranties we enjoy in Europe.

    If there is any more difference, it can be explained by hedging exchange rates - today $1 might be worth €2, so Apple gets $100 for a €200 purchase, but tomorrow $1 might be worth €4, so Apple gets $50 for a €200 purchase. You don't see the prices varying every day, even though exchange rates do.
  5. paulrbeers macrumors 68040

    Dec 17, 2009
    I wish people would understand the true costs of devices (such as 20% VAT) and not just the final cost. So for Apple, they "only" get to keep 80% of what they charge. That is the true cost of the device....
  6. tdhurst macrumors 601


    Dec 27, 2003
    Phoenix, AZ

    Very sorry the United States economy is no longer kicking the hell out of yours, which previously allowed you to buy products from American companies at more favorable exchange rates.

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