New Watches EU pricing.... wow

[The Mercurian]

Was waiting to upgrade from an S3, but just saw the prices for the new watches:
Apple Watch 8 41mm GPS starting at €499, 45mm GPS starting at €539 ?!?!?!? The Ultra is €999.....

These prices are bonkers - I'll be sticking with my S3. They are not going to sell alot of these watches in Europe at these prices!

 

[Shirasaki]

You completely underestimate people’s ability to go out of their way to get their latest and greatest at all costs. The sales number may not be what Wall Street maniacs hope for, but it will sell a lot.

 

[ingambe]

I am too very surprised and disappointed by the price hikes, so I will not buy the Apple Watch 8 as planned
I don't know if it will sell well, but at 1000€ for the base iPhone and 1300€ for the Pro, it is a sensible price hike that leaves a lot of people out

 

[The Mercurian]

You completely underestimate people’s ability to go out of their way to get their latest and greatest at all costs. The sales number may not be what Wall Street maniacs hope for, but it will sell a lot.

I wouldn't be so sure. Can get a Garmin/ Samsung whatever cheaper. Personally I'll keep my eyes open for deals on S7 or even second hand S7. I could afford to pay the new prices - I just don't consider it worth that price.

 

[Thomba]

I wouldn't be so sure. Can get a Garmin/ Samsung whatever cheaper. Personally I'll keep my eyes open for deals on S7 or even second hand S7. I could afford to pay the new prices - I just don't consider it worth that price.

I lost my S3 this summer in the waters of Croatia. Was waiting to have it replaced with a S8 or the Extreme. But wow, these prices. I can afford them, but I'm just not willing to pay this for a smartwatch. Guess I'll be wearing my Breitling some more.

 

[MajorFubar]

Starting with the M2 line of Mac products, Apple decided RotW is there to subsidise the cost of hardware in its native country, while the actual exchange rate can go eff itself.

The problem is Apple's hold on the RotW is shaky. Macs are nowhere to be seen except in the studios of musicians, photographers and videographers, and iPhones have a global marketshare of less than 30%.

£849 in the UK for a Watch Ultra, in a country where the average salary ~£30K
$799 in the US, a country where the average salary is ~$50K

EDIT and while we're at it:

US iPhone 14 Pro: $999.
UK iPhone 14 Pro: £1099.

That's a very, very hard pass (considering what little it buys you compared to the 13 Pro), in a time where our energy bills alone are predicted to surpass £4k a year.

 

[Tafkaeken]

Yeah, it will be interesting to see what Apple and retailers do with the 7. Sadly there is opening to not to do much lower than the €400-450 that the 7 has been for a while.

 

[ingambe]

Starting with the M2 line of Mac products, Apple decided ROtW is there to subsidise the cost of hardware in its native country, while the actual exchange rate can go eff itself.

The problem is Apple's hold on the ROtW is shaky. Macs are nowhere to be seen except in the studios of musicians, photographers and videographers, and iPhones have a global marketshare of less than 30%.

£849 in the UK for an Watch Ultra, in a country where the average salary ~£30K
$799 in the UK in the US, a country where the average salary is ~$50K

I think Apple got trapped with their 1-to-1 conversion rate
Now that the Euro and Pound are lower than before, if they want to maintain their margin they have to raise the price

If you take Euro, for example, last year it was at 1.18. If they still applied a 1-to-1 conversion, even while selling the same amount of iPhone/Watch, they would have to sell 18% more compare to last year to keep the same margin or accept a trimester with a decline in revenue

 

[inc0gnito]

Price increase is bonkers indeed, all due to euro being low.

One thing worth taking into consideration - US prices don’t include sales tax, as every state accounts their own separately. All of the European countries include tax in sale.

 

[The Mercurian]

I lost my S3 this summer in the waters of Croatia. Was waiting to have it replaced with a S8 or the Extreme. But wow, these prices. I can afford them, but I'm just not willing to pay this for a smartwatch. Guess I'll be wearing my Breitling some more.

I smashed my old s3 in June. So I bought a “temporary” refurbed s3 for €160 on Amazon to get me to now. I guess this temporary one just became permanent!

I think Apple got trapped with their 1-to-1 conversion rate
Now that the Euro and Pound are lower than before, if they want to maintain their margin they have to raise the price

If you take Euro, for example, last year it was at 1.18. If they still applied a 1-to-1 conversion, even while selling the same amount of iPhone/Watch, they would have to sell 18% more compare to last year to keep the same margin or accept a trimester with a decline in revenue

But wages in Europe/Uk didn’t go up 18%, while energy bills are up much more than 18%. So Apple just priced themselves out of those markets I reckon

 

[headlessmike]

Price increase is bonkers indeed, all due to euro being low.

One thing worth taking into consideration - US prices don’t include sales tax, as every state accounts their own separately. All of the European countries include tax in sale.

That's definitely part of it. The Pound and Euro have both lost value to the Dollar in the last 12 months, something like 20 percent each. Apple, being an American company will "have to" raise prices by a similar amount to compensate.

I smashed my old s3 in June. So I bought a “temporary” refurbed s3 for €160 on Amazon to get me to now. I guess this temporary one just became permanent!

But wages in Europe/Uk didn’t go up 18%, while energy bills are up much more than 18%. So Apple just priced themselves out of those markets I reckon

I still wouldn't be surprised if Apple sells more than ever of these products. People seem to have accepted the high inflation, which is potentially dangerous because it helps drive inflation even further.

 

[perfectpizza]

Was waiting to upgrade from an S3, but just saw the prices for the new watches:
Apple Watch 8 41mm GPS starting at €499, 45mm GPS starting at €539 ?!?!?!? The Ultra is €999.....

These prices are bonkers - I'll be sticking with my S3. They are not going to sell alot of these watches in Europe at these prices!

Doesn't that mean they're basically the same prices as USA, since Euro prices include VAT (~20%) and US prices do not?

Starting at: €499 / 1.2 = €415.83
Ultra: €999 / 1.2 = €832.50

Those are $399 and $799 in the US. So because basically USD and Euros are 1:1 right now... you're paying a 4% premium. What's the big deal?

 

[Cassandle]

What was the price of the AW7? I have a 6 (GPS and cellular, 44mm) and can‘t remember what I paid, but I’m sure it was less than £549, which is what the equivalent Series 8 is…

 

[ingambe]

Doesn't that mean they're basically the same prices as USA, since Euro prices include VAT (~20%) and US prices do not?

Starting at: €499 / 1.2 = €415.83
Ultra: €999 / 1.2 = €832.50

Those are $399 and $799 in the US. So because basically USD and Euros are 1:1 right now... you're paying a 4% premium. What's the big deal?

Except that when EUR was 1.2 or even 1.3, Apple already applied a 1:1 conversion + VAT on top of that.
Basically, when EUR goes up, the price stays the same, but when EUR goes down price increases.

Your comment is viewed from outside the EU, from a US perspective. The problem is that if USD is 1.3 or 1:1, our salary is the same.
No European is converting anything into USD before buying anything. Most of us don't know what the current exchange rate is.

Let's see how it goes. It will be interesting to see what is the result of Q4, maybe it is the right strategy, or maybe it isn't. Time will tell.

 

[ukms]

Except that when EUR was 1.2 or even 1.3, Apple already applied a 1:1 conversion + VAT on top of that.
Basically, when EUR goes up, the price stays the same, but when EUR goes down price increases.

Your comment is viewed from outside the EU, from a US perspective. The problem is that if USD is 1.3 or 1:1, our salary is the same.
No European is converting anything into USD before being anything. Most of us don't know what the current exchange rate is.

Let's the how it goes. It will be interesting to see what is the result of Q4, maybe it is the right strategy, or maybe it isn't. Time will tell.

Not sure what the market share is in EU / UK but there are also other markets where the pricing has stayed pretty much the same. I suspect people will buy regardless of the increase.

 

[headlessmike]

Except that when EUR was 1.2 or even 1.3, Apple already applied a 1:1 conversion + VAT on top of that.
Basically, when EUR goes up, the price stays the same, but when EUR goes down price increases.

Your comment is viewed from outside the EU, from a US perspective. The problem is that if USD is 1.3 or 1:1, our salary is the same.
No European is converting anything into USD before being anything. Most of us don't know what the current exchange rate is.

Let's the how it goes. It will be interesting to see what is the result of Q4, maybe it is the right strategy, or maybe it isn't. Time will tell.

Individuals might not do the exchange, but we do feel the effects. Inflation is so high at the moment partly because most European currencies are falling compared to the Dollar. That affects more than Apple's products. Bread prices where I live have nearly doubled in the last year and so has the price on coffee. Apple's increases are small in comparison.

I'm not defending Apple here. I will not be buying a new Apple Watch anytime soon. But there's more to it than Apple just being greedy (which they are, they're a company after all).

 

[Bodhitree]

Starting with the M2 line of Mac products, Apple decided RotW is there to subsidise the cost of hardware in its native country, while the actual exchange rate can go eff itself.

The problem is Apple's hold on the RotW is shaky. Macs are nowhere to be seen except in the studios of musicians, photographers and videographers, and iPhones have a global marketshare of less than 30%.

£849 in the UK for a Watch Ultra, in a country where the average salary ~£30K
$799 in the UK in the US, a country where the average salary is ~$50K

EDIT and while we're at it:

US iPhone 14 Pro: $999.
UK iPhone 14 Pro: £1099.

That's a very, very hard pass (considering what little it buys you compared to the 13 Pro), in a time where our energy bills alone are predicted to surpass £4k a year.

I agree with you. I’m basically set with Apple products for the foreseeable future — this year I got a new Mac, watch and iphone — but these price hikes would make me really wonder about staying with Apple, regardless of how attractive the ecosystem and the hardware is.

About 1000 € is near to my limit for a new phone even if it does last 6 years, and I’m just not seeing big yearly improvements like we used to have earlier in the life of the iphone.

I think if Apple want to expand their market share in iPhones they are going to have to reconsider this pricing strategy. In watches, I think they are reasonably priced compared to the high-end Garmin products. But in Macs, the upgrades make consumer Macs almost the same price as the Pro devices.

 

[The Mercurian]

Doesn't that mean they're basically the same prices as USA, since Euro prices include VAT (~20%) and US prices do not?

Starting at: €499 / 1.2 = €415.83
Ultra: €999 / 1.2 = €832.50

Those are $399 and $799 in the US. So because basically USD and Euros are 1:1 right now... you're paying a 4% premium. What's the big deal?

This may shock you, but when we buy things in the EU, we don’t say “I wonder what this costs in America?”.

The big deal is that an S7 started at €440. An S8 starts at €499. That’s a 13% increase overnight. That’s the big deal!

 

[ukms]

This may shock you, but when we buy things in the EU, we don’t say “I wonder what this costs in America?”.

The big deal is that an S7 started at €440. An S8 starts at €499. That’s a 13% increase overnight. That’s the big deal!

What do you feel the increase should be ? It’s a new model it’s always going to increase.

 

[utzelu]

Doesn't that mean they're basically the same prices as USA, since Euro prices include VAT (~20%) and US prices do not?

Starting at: €499 / 1.2 = €415.83
Ultra: €999 / 1.2 = €832.50

Those are $399 and $799 in the US. So because basically USD and Euros are 1:1 right now... you're paying a 4% premium. What's the big deal?

Besides 19-20% of VAT, extra custom duties are applied for goods coming from outside EU countries. That's few more %. So $799 = EUR 799, and the 799 * 1.05 * 1.2 = aprox. 1000 EUR. So I don't think Apple has added extra margin in their European prices, it's just taxes and currency conversion rate.

 

[Fumblerooskie]

Is it tariffs, does the Apple price include VAT? The EUR/GBP to USD exchange rate isn’t favorable right now either.

I haven’t researched as to whether watch customs duties apply to apple watches or the effect of Brexit.

 

[MajorFubar]

Besides 19-20% of VAT, extra custom duties are applied for goods coming from outside EU countries. That's few more %. So $799 = EUR 799, and the 799 * 1.05 * 1.2 = aprox. 1000 EUR. So I don't think Apple has added extra margin in their European prices, it's just taxes and currency conversion rate.

Historically Apple just exchanged the dollar sign for £ / € even when the so-called exchange rate already massively favoured the £ / €. Now they've decided they need to add 4-5% on top of even that.

The real difference that makes is for example in the Mac world it's actually better value to buy base 14" M1 MBP (£1899) than to spec-up an M2 MBA with 16GB RAM and a 512GB SSD (£1749), whereas in the States the same machines are $300 apart. Though all that will change when the M2 14" and 16" Pros are launched and they receive the overseas price-hike, pushing the different to £300+.

 

[xDKP]

Thought the same about all the straps as well.. Price hike across the board

 

[Samppaa]

Nowadays I just buy apple things when I travel to somewhere like HK or Thailand, way cheaper than my own european country

 

[deeddawg]

Was waiting to upgrade from an S3, but just saw the prices for the new watches:
Apple Watch 8 41mm GPS starting at €499, 45mm GPS starting at €539 ?!?!?!? The Ultra is €999.....

These prices are bonkers - I'll be sticking with my S3. They are not going to sell alot of these watches in Europe at these prices!

Not to disagree, but do note the € to $US exchange rate is down substantially in the past year.

I'd imagine the ~17% decline in value has some impact on € pricing.