The full truth about Apple pricing (it will blow your mind, seriously)

[zhenya]

So not only are you unable to provide a link, but also have contradictions in your own posts. Wonderful

Do you not understand that prices change daily and today's deal's are not the same as yesterday's nevermind last weeks or last months? The point is that Dell's published prices are not what people typically pay, so doing a comparison based on sticker price isn't representative of reality.

 

[Pangalactic]

. For you Americans, did you know Toyota Camry's cost $100k in Thailand?

Ehm, no I didn't, so here is some serious insight for you as requested:

[doublepost=1480363194][/doublepost]Not to derail the thread to off topic discussions, let me bring it back to the point.

The point is that the Apple's price strategy (which is to charge premium for everything it can) is bad enough in the US, but in countries like Russia the customers are screwed double. Just to remind you, the average salary for Moscow alone (excluding the rest of the country) is around $1200 per month. And I'm yet to find a single person who would say that they will be buying the new Macbook and that it is a justifiable price. Even fairly wealthy people I know told me they would stay with the 2015 model until the price drops significantly.

In other words, if Apple do not rethink their strategies, they might soon move on to selling iphones and ipads alone.

 

[thesaint024]

Ehm, no I didn't, so here is some serious insight for you as requested:

The point is that the Apple's price strategy (which is to charge premium for everything it can) is bad enough in the US, but in countries like Russia the customers are screwed double. Just to remind you, the average salary for Moscow alone (excluding the rest of the country) is around $1200 per month. And I'm yet to find a single person who would say that they will be buying the new Macbook and that it is a justifiable price. Even fairly wealthy people I know told me they would stay with the 2015 model until the price drops significantly.

In other words, if Apple do not rethink their strategies, they might soon move on to selling iphones and ipads alone.

You mean like it does now? Apple's revenue is 70% mobile and <10% Macs. Computers are already not vital to the company. This is a for profit company, not a charity. Their niche happens to be premium devices. They are not going to cut prices so that there is a Mac in every human's hands. They can make lesser products, but that is not their core competency to compete in commoditized computers. The profit margins on Macs are significantly less than idevices. Don't expect discount pricing anytime soon. Also, Russia is not a significant market for Macs, no offense to Russia if offense was taken.

 

[Phoenixx]

You mean like it does now? Apple's revenue is 70% mobile and <10% Macs. Computers are already not vital to the company. This is a for profit company, not a charity. Their niche happens to be premium devices. They are not going to cut prices so that there is a Mac in every human's hands. They can make lesser products, but that is not their core competency to compete in commoditized computers. The profit margins on Macs are significantly less than idevices. Don't expect discount pricing anytime soon. Also, Russia is not a significant market for Macs, no offense to Russia if offense was taken.

ANY company that bases 70% of its profits on a single product, in a saturated market, and has premium pricing while simultaneously reducing quality to boost profits during a time of recession is in serious trouble. There is little doubt that Apple knows this, but they seem to be far more concerned about maintaining their image than the reality of their situation.

Apple isn't about to go out of business anytime soon, but their days as one of the world's most valuable companies are clearly numbered. It will be the steady income from products such as the Mac, Apple TV, and services such as Apple Music that allow Apple to survive once iPhone profits dry up - those are the future for Apple, especially if they can't come up with the next 'big thing'.

 

[chfilm]

As I hear, all apple stuff is way more expensive in russia...
I have a suggestion to make: fly over to Berlin for 180 €, but a tax free macbook in the apple store and save HUGE when they give you the VAT back at the border. How about that

 

[EndlessBuffoonery]

This has been my point - Apple have ignored the international tax impacts on the end user prices of its products and/or used these discrepancies as an excuse to simply increase prices. Very aggressive stuff but it doesn't seem to be harming them...

I think you're confusing "Apple have ignored" with "Apple have evaluated the cost and determined what makes sense for them in terms of supplies and sales in non-American countries".

 

[Howard2k]

Dumb thread. No offence. Free market, Apple can charge whatever they want.

 

[aevan]

Now let's look at the 2016 new Macbook Pro. On the official(!) Apple website, you can buy it for $4300, as we already know

You do know that the prices on Apple US website are without taxes included? The price is actually closer to $4700. And the price of that computer in Germany is 4999e, which is $5300 - almost the same in Russia.

It mostly has to do with higher taxes in Europe. In USA the tax varies by state, but it's roughly 10%, while in EU, VAT is around 20% (depending on the country). While Apple does probably charge more in Europe, the difference is not that great when you take taxes into account. Hey, but at least Europe has better healthcare, right?

As for Dell, either that Russian website doesn't have VAT included, or they are selling it at a discount for the Russian market.

 

[yillbs]

I don't get it... you never explained WHY they are so expensive. Can you please provide what you so boastfully promised ?

 

[Pootmatoot]

As for Dell, either that Russian website doesn't have VAT included, or they are selling it at a discount for the Russian market.

That Dell is £1,599.00 with VAT in the UK ($1984.44), so the Russian price could be with tax.

There's an additional 12% off at the moment too.

So cheaper than the US... plus free healthcare

 

[MattSeven]

I do not think this thread is a thing.

 

[Antairez]

I suppose the cost difference is due to Apple trying to offset their regional operational cost. They do somehow make their customers pay for local Apple Store's running cost with all the human resources and logistics and stuff.

 

[Pootmatoot]

I suppose the cost difference is due to Apple trying to offset their regional operational cost. They do somehow make their customers pay for local Apple Store's running cost with all the human resources and logistics and stuff.

All companies with stores have identical regional costs. They don't do what Apple does.

 

[Antairez]

Don't really understand what you meant by identical regional costs, regional costs definitely vary region by region. If you are talking about other companies having retail stores in Russia as well, I would say Apple Store definitely has the higher running cost due to better location, bigger store, and more staff.

 

[skids929]

ANY company that bases 70% of its profits on a single product, in a saturated market, and has premium pricing while simultaneously reducing quality to boost profits during a time of recession is in serious trouble. There is little doubt that Apple knows this, but they seem to be far more concerned about maintaining their image than the reality of their situation.

Apple isn't about to go out of business anytime soon, but their days as one of the world's most valuable companies are clearly numbered. It will be the steady income from products such as the Mac, Apple TV, and services such as Apple Music that allow Apple to survive once iPhone profits dry up - those are the future for Apple, especially if they can't come up with the next 'big thing'.

And don't forget the App Store revenue..But yes I agree 100% with everything you said here. Apple really needed to find out a better way to put a Mac in everyones home since once we you get in deep into their ecosystem, well you know what happens....And the Mac is central hub of that ecosystem in the home, not an iPad or an iPhone.

 

[wchigo]

And don't forget the App Store revenue..But yes I agree 100% with everything you said here. Apple really needed to find out a better way to put a Mac in everyones home since once we you get in deep into their ecosystem, well you know what happens....And the Mac is central hub of that ecosystem in the home, not an iPad or an iPhone.

I would say that is not so true anymore. Computers, whether they be full-on desktop PCs or laptops, are becoming less so the central hub of many people's homes these days. Yes, the more tech-orientated people will of course still have their Macs and PCs and whatnot, and this may be more prevalent in the western world, but in many other parts of the world people don't have them and their "central hub" (or in some cases their only device) is a tablet or a phone.

If anything, hooking people into their ecosystem a little bit at a time with $0.99-2.99 apps until that becomes hundreds or thousands of dollars is a lot easier than trying to hook them in with more expensive apps on a Mac as the sticker shock is less pronounced and is more spread out over time, to the point that one day years from now you suddenly realize you've invested WAY more money into the system than you actually thought you did.

 

[shamus99]

I would defect...

 

[WolfSnap]

This is pretty common.. I recall Australian people were irate with the prices of Adobe Master Collection.. You could fly from Australia to the USA, buy Adobe Master Collection, go see a broadway show, fly back, and STILL save money.

This isn't anything new. Complain to your government about the tariffs they impose.

 

[mickeydean]

The Dell had a 512GB SSD and you picked the 2TB option for the Macbook Pro...

 

[Pootmatoot]

The Dell had a 512GB SSD and you picked the 2TB option for the Macbook Pro...

Good work Sherlock!

 

[PaulWog]

The Dell had a 512GB SSD and you picked the 2TB option for the Macbook Pro...

Oh my. Please make sure you cross the road safely. Your comment sounds like the kind that matches the statistics of people who drown in their own toilet.

The OP was not comparing the price of Dell laptops to the price of Apple laptops. The OP was comparing the purchasing power parity difference between the USA and Russia, and the degree of overvaluation that Apple puts on its laptops.

 

[dapork]

I live in Greece and I'm gonna go to France to get my MBP. Not only is the VAT tax cheaper there, but in Greece there is no Apple store and they have no idea when they'll get them in stock. I'm having someone buy it for me in France, and when it arrives I'll go over there and get it and then come back.

 

[MH01]

This is not even about Russian pricing, this is international pricing, the Russian price is similar to the UK price for the same model, which will be reflected in other international currencies.

Americans are getting a good deal the rest of are are really starting to question what value apple beings us....and what a great job Tim "Steve ballmer" cook is doing at maximising profits...