Either the iPhone pricing in Australia is about to get the s**t smashed out of it or Apple has a dilemma... Apple has chosen to display US pricing for the iPad on it's international pages and by doing so is setting a certain expectation. Apple knows full well that, justified or not, people will take out their exchange rate converter of choice and start guessing their local pricing based on the announced US ones. When comparing other Apple computer products the difference between US and AU pricing is reasonable when one takes into account differences in taxing systems and that sort of thing (not just the exchange rate at any given time). The iPhone on the other hand is a completely different situation. As of right now the primary difference between iPhone AU and iPhone US is the carrier arrangement. In Australia you can buy unlocked or locked to one of several carriers, whereas in the US it's AT&T or AT&T. Now it is obvious that that exclusivity deal has worked out great for US citz as they get pricing on the iPhone like $299 for the 32GB 3GS. In Australia we can buy an unlocked 32GB 3GS from Apple for the tidy little sum of $1,040.00 including GST (~$945.00 ex GST). From now on I will compare ex GST AU price vs US price. GST is a 10% blanket goods and services tax in Australia for those that don't know. So we are talking here about an increase of +216% over the US price in Australia. By comparison the pricing of other Apple computing products is more like a +20% increase. Ok so Apple has set it's US pricing to slot it neatly between the upper end iPhone and the bottom end MacBook. Below is a representation of what I mean. US price distribution: iPhone: $99 to $299 iPad: $499 to $829 MacBook: $999 AU price distribution (ex GST): iPhone: $653 to $945 iPad: ?? Um we are feeling a little crowded here MacBook: $1180 So the only thing I can see happening is that iPhone pricing in Australia is about to get smashed. If Apple were to release the iPad in Australia with prices above that of the current iPhones there would not be very many happy Ozzie Apple fans. If they do push down the price of the iPhone then they have the potential to considerably increase iPhone sales as well as capturing the new mobile computing market. Based on Apple's choice to loudly broadcast the US pricing and therefore set an expectation I would be expecting the 64GB WiFi/3G iPad in Australia to debut at either $999 (incl GST), to stay under the magic "grand", or around $1100 (incl GST) to fit with the approximate +20% mentioned earlier. Anyone else got any thoughts on this or similar "analysis" for their countries?