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UK Pricing
- Thread starter Washac
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Don't blame Apple for the drop of the Pound. It's a currency adjustment and incidentally, not just in the UK.Well with Apple upping there UK prices that is me out of the Apple market
No, but from what I've read, they are the only ones so far raising their prices so aggressively, seemingly beyond what the actual exchange rate
What can I say? We all know Tim is on a job-saving quest to maintain profit levels (witnessed by Apple's sudden increased efforts in services and penny-pinching with necessary adapters) in the face of somewhat stagnating sales directly due to the absence of recent hardware updates, coupled with Apple's realization of no new product categories with additional revenue streams on the horizon for at least several years.
In a similar vein, contrary to many opinions on MR, I actually think the new MBPs are gorgeous and a worthwhile upgrade that many will come to appreciate in time, but definitely priced on the high side.
The current accent on profits is turning many people off.
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Exactly another greedy corporate company.
when I can possibly buy three for their one, where am going to go ?
Its a no brainer really.
Any excuse to wack up prices above and beyond as you say.
Exchange rates fluctuate all the time, never see a drop when things are good do we ?
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Never go down though do they, its just pure greed, nothing else, no excuse.
Well with Apple upping there UK prices that is me out of the Apple market
Actually, compared to the US prices, the UK prices are pretty fair.
Remember, US prices don't include any sales tax (whether or how much USAians pay that is beyond the scope of this post) whereas UK ones are quoted including 20% VAT.
Now, the pound is currently at $1.22 - lets say $1.20 as there are other expenses to exporting.
So to convert US prices to UK prices, you divide by 1.20 and then multiply by 1.20 ... now, hold on while I get my calculator out, this one's tricky ... that makes £1 inc. VAT = $1 without sales tax.
So, let's look at Apple's prices:
Entry level 13" MacBook Pro - US $1499, UK: £1449
15"/2.7GHz/512GB: US $2799, UK £2699
That's actually closer to "fair" than the US and UK prices have been for some time - I'd guess Apple are actually counting on the pound bouncing back a bit. So, that's not the problem.
No, the problem is that Apple have whacked up their US prices considerably - I think the previous entry-level 13" rMBP was about $1200 - now its $1500. Sure, you get 256GB SSD, better graphics, newer (but not latest) processor, Thunderbolt 3/USB-C but those are the sort of bringing-it-up-to-date changes you'd expect for free - in the good 'ol days we'd have seen a price cut.
This model is the real failure - the entry-level Pro (without the touch strip) should be the one that appeals to students, "office productivity and internet" people or as a second computer. Apple need a sub-$1000/£1000 offering to replace the ageing Air or they're going to price themselves out of the market, just as they did in the 90s.
Hey, lucky me can afford a fully-tricked out MBP plus the £500 of docks, adapters and spare power supplies I'll need to use my existing peripherals - although I'm less happy about that extra £500 when the mac costs £500 more than I anticipated. However, I don't see my colleagues having much luck getting work to spend that much - it was already a challenge with the old prices - and I don't think they'll be prepared to BYOD like I do. When their existing Airs & MBPs give out, replacing them is going to be a challenge. So my main concern is the future of the Mac ecosystem over the ~5 years I'd expect to get out of an expensive new machine.
This is what that nice Mr Cook doesn't seem to get: if you're selling handbags or Ferraris, you don't need to worry about the ecosystem - you can coin it in by selling them at eye-watering prices to a minority of people who want to show off. You don't need someone to make special Gucci-compatible tissues to keep in a Gucci handbag*, you don't need special Ferrari roads or special Ferrari petrol to put in a Ferrari. A computer system isn't like that: if there isn't a critical mass of people using that system, you don't get third party software, you don't get peripherals tested on your system (simply using a standard like USB-C isn't enough) you can't get support from internet providers and the like. This was why using Macs was becoming a labor of love in the 90s, and what Jobs fixed with the original iMac and the iBook. Hiking the prices like this is bean-counter "current quarter" thinking - in the short term the mark-up will probably compensate them for falling sales, but long-term it will cause the platform to stagnate. Microsoft can choose to release surface books & surface studios at eye-watering prices if they like - but for every $4000 lifestyle computer they sell, there are 10 $500 economy laptops and 100 corporate mini-towers keeping the platform in the mainstream.
I'm going to give it a few months to see what happens on the iMac/Mini/Pro front (a new desktop at home + use my existing MBP for work might suit) - if not, well, the MS Surface Book now competes on bangs-per-buck, is more interesting than a touch strip and, by a happy coincidence, has exactly the right ports and docking options for my current peripherals...
(* I assume you *can* put Tesco economy tissues in a £1000 handbag without the spinning beachball of death - or does that get you unfriended on social media?)
To be fair though, before the event I checked around for pricing in EU stores and they were considerably higher than the UK prices (£200-400 higher). I'm really unhappy with the pricing but take away the VAT and it's pretty fair. Like @theluggage mentioned, Apple just raised the baseline US price considerably higher which is why it's feeling much worse.
Fluctuations are one thing, the pound losing around 20% is another thing. Blame the politicians for not having a plan for the brexit vote. In time hopefully the pound will recover - when it does the prices will be adjusted.
The problem is the UK double whammy - Apple chose to adjust their UK prices for exchange rate and substantially hike the US price of the new models (c.f. the ones they replaced) on the same day.
Long-term, the lower pound is probably a good thing for industry (make our exports cheaper & home-produced stuff more competitive with imports) - the worst thing it could do now is shoot up again, after everybody has raised prices (and will be reluctant to drop them again).
Excellent post! I believe these higher prices are severely testing the loyalty many Mac users have shown over the years, and Apple perhaps mistakenly believes that loyalty is a given, no matter what. And millions will stay loyal no doubt. Economic realities however may sway an increasing number of Mac loyalists to explore other options.
It's a gamble Tim appears willing to take to preserve his job security, in light of the prospect of lower future profits due to market saturation, limited innovation, and a lack of coming new revenue streams, at least for several years anyway. See also some of my earlier thoughts on this.
I do not care what other countries have to pay to be honest, I live in the UK so my only concern is what they are charging here, I for one have just been priced out of buying anymore Apple products.
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I've only ever bought macs, apart from a couple of Amigas in the early 90's. At the moment I have a 2011 iMac that is slowing with the recent MacOS update. If iMacs and Mac Mini pricing goes the way of the new MBP I'll have to start looking at Windows I think.
I could accept paying more for a Mac before because they lasted longer, ease of use and because I'd bought into the eco system. But with huge price increases, putting design before physical features (obsession with thinness, lack of ports & optical drives) and soldered-in RAM they are becoming less and less justifiable.
There always used to be an affordable range too, iBooks and plastic MAc Books, they were the ones I could afford, even though I'd want a PowerBook, Mac Pro, or MacBook. That has now changed and even the old MBP is Still at the old price, not reduced.
I could accept paying more for a Mac before because they lasted longer, ease of use and because I'd bought into the eco system. But with huge price increases, putting design before physical features (obsession with thinness, lack of ports & optical drives) and soldered-in RAM they are becoming less and less justifiable.
There always used to be an affordable range too, iBooks and plastic MAc Books, they were the ones I could afford, even though I'd want a PowerBook, Mac Pro, or MacBook. That has now changed and even the old MBP is Still at the old price, not reduced.
A lot of people feel the same way. I'm not sure what to do and whatever happens with their next iMacs and Mac Pro (highly unlikely) updates will determine if I'm ever buying another Mac.
The MBPr (4.5 years old) and iMac (2.5 years) I own can't handle the 4k video files I'm editing and I desperately need to update at least one of them for work.
I'm gonna hold off for another few months and make my decision in the new year.
The MBPr (4.5 years old) and iMac (2.5 years) I own can't handle the 4k video files I'm editing and I desperately need to update at least one of them for work.
I'm gonna hold off for another few months and make my decision in the new year.
Take your calculator and check it. UK prices are slightly lower than US price + 20% VAT.
HP has increased prices by > 20%. Microsoft has increased prices by > 20%.
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There have been price drops. You just don't notice them. And times when the UK£ goes up are rare. Lake $2.00 in 2008, or $1.70 mid 2014.
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And that's a problem for Apple when people from the continent can just go to the UK for a day and buy a Mac and save tons of money.
humour
The iPhone went seriously mainstream and some appallingly uncouth individuals now own Apple products. They can be seen in the local Apple store wiping their sticky fingers all over the products there. It's just awful. Well, no longer. If we're going to have that "oooh, you own a Mac!" factor back we have to do something about the demographic. No use pulling out a MacBook if Wayne and Waynetta Slob from the local sink estate say "we got one of them innit". So, hike the prices, keep the riff raft out.
/humour
The iPhone went seriously mainstream and some appallingly uncouth individuals now own Apple products. They can be seen in the local Apple store wiping their sticky fingers all over the products there. It's just awful. Well, no longer. If we're going to have that "oooh, you own a Mac!" factor back we have to do something about the demographic. No use pulling out a MacBook if Wayne and Waynetta Slob from the local sink estate say "we got one of them innit". So, hike the prices, keep the riff raft out.
/humour
Apart from thats not what happens is it. Like the people you suggest in your post they will just spend more money that they either don't have to get what they want. So they use credit cards that they can't pay off or they use money that was intended for something like children's future/education but anything to keep up with what their mates have which is shiny and new and shows that they have status.
I suggest you go back and read the post again and this time pay close attention to the word on the top line. If you'd noticed that first time round you'd have saved yourself the time and effort you've wasted replying as though the post was serious.
Apples computers have gone down in price in the uk for the last 5 years, due to the strong pound and general price drops. Now the pound is weak we are leaving Europe and we have 20% tax on everything, it was only to be expected, the current pricing is more in line with what we were paying 6years ago and taking inflation into account they may actually still be a bit cheaper!!