Mac Pricing

Discussion in 'iMac' started by azdunerat, Mar 3, 2009.

  1. azdunerat macrumors regular

    Joined:
    Feb 11, 2009
    #1
    Ok I think I have read enough posts today about Apple pricing in the UK and overseas that we should clarify something. When companies sell overseas they have to deal with massive price fluctuations in currency trades. Now when they have to set a price they usually will go in and peg a price on a currency valuation and then they have to let that ride as long as they have contracts out.

    So what does that really mean. Well if the Euro or Pound is very strong compared to the dollar, the price of the equipment will be cheaper in your favor for the duration of the contract. Now lets say that the Euro or pound weakens during that time period will you see price increases? Usually no, there are contract lengths that they will stick to. That is why we usually dont see increases and decreases during normal product runs. So here is the problem. During the last product run the USD was at historic lowes against the other major currencies and the pricing was in favor of that. Now that the tide has turned and the USD has seen huge gains guess what happens on the NEW contracts. Your going to see your price increase.

    Its not just apple or anyone wants to SCREW YOU. Its global economies. The price of the 2009 BMW seems to have dropped here in the US. Is that because BMW is whoring out its cars at low prices. No it is becoming cheaper to buy their vehicle at the dollar cost average.
     
  2. lewchenko macrumors regular

    Joined:
    Jun 8, 2004
    #2
    Quite true... but when £1 was worth $2, we didnt see our apple goods priced anything like that.

    Not the £1 is worth $1.4 we are definitely seeing the price adjustment.

    You can say what you like, but Apple has a proven history of pricing its goods in a non fair way, and almost always shafting the Europeans.

    And not only that, but their price increases in general in the US for lame updates are not welcomed either.. Now we have had the updates, the statement that 'all is not well in mac land' is truer than ever.
     
  3. Shivetya macrumors 65816

    Joined:
    Jan 16, 2008
    #3
    Also understand that US based companies have to pay taxes on profits made overseas whereas in most sane countries that is not the case. So Apple gets whacked twice.

    Still doesn't excuse them for not lowering it during the days when the dollar was slammed
     
  4. DannySmurf macrumors 6502a

    Joined:
    Jul 7, 2005
    #4
    No it doesn't. As I said in another thread, we saw the same things here. No serious price reductions when our currency walloped the US dollar, but definite and substantial increases as things reversed. I feel just like I do when I get double-dipped by my bank for using a foreign bank machine.
     
  5. Gregintosh macrumors 68000

    Joined:
    Jan 29, 2008
    Location:
    Chicago
    #5
    Also remember, most US states have a sales tax which adds 10-12% to the advertised prices.

    Unlike GST or other taxes elsewhere, which are included in the prices you see posted, this is not the case with sales taxes.

    The $1,499 iMac for example really costs as much as $1,678 when tax is included.

    Obviously it is impossible to match the currency rates to the penny when the fluctuate daily so a few percent difference in either direction is expected anyway.
     
  6. DannySmurf macrumors 6502a

    Joined:
    Jul 7, 2005
    #6
    We pay sales tax here too; varies by province. Where I live, it's 5%, but in some places it's as much as 19%. So:

    The US$600 mini is anywhere between CAD$766.50 and CAD$868.70 after taxes, depending where you buy it.
     

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