Waiting for the UK Apple price hike after Brexit...

Discussion in 'Politics, Religion, Social Issues' started by dannys1, Jul 6, 2016.

  1. dannys1 Suspended

    dannys1

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    #1
    On the back of Brexit the pound has dropped, and dropped, and dropped. This morning it reached £1.27 to the pound. On a £3000 machine Apple is now getting $1000 less than they were one week ago.

    Dell and OnePlusOne have already increased prices in the UK by a blanket 10% to retailers. There is no way Apple are going to accept their profit margins being slashed so much in the UK and we've seen them adjust for weak currencies recently this year.

    It's only a matter of when, not if - and by how much Apple prices increase in the UK now. They might wait until the new MacBook Pro's are released and price them at new price points to make up for it. If you're on the fence and something is already released you want - I'd advise buying right now.

    http://www.bbc.co.uk/news/technology-36722155?ocid=socialflow_twitter

    (p.s. anyone that replies to this using any phrase ending in "mongering" is an idiot and will be blocked)
     
  2. Brian Y macrumors 68040

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    #2
    Feel free to call me an idiot and block me, but this is scaremongering.

    The pound is still volatile. It's not a "staying low" thing, it's more than likely temporary. Chances are that by September/October it may have risen again. If a company raises prices and risks alienating customers this early on, they don't have their plan set.

    Apple can easily absorb a lower profit for a few months before jacking up prices and peeing people off.
     
  3. keysofanxiety macrumors 604

    keysofanxiety

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    #3
    I wouldn't worry too much. The BBC are quite pro-EU, so they tend to focus on the negative fallout which will naturally come from uncertainty about the future. Nothing has practically changed -- the drop in the value of the Sterling is just from people panicking about possible repercussions and pulling out their money. Once the hiccups are ironed out, things should look up.

    The pound will eventually stabilise; optimistically, within the next few months, so Apple wouldn't have to raise their prices.

    If it doesn't, I guess we have higher prices for our Macs. Regardless, I'm confident that we'll be OK in the long run. We'll just have to wait and see. ¯\_(ツ)_/¯
     
  4. cube macrumors G5

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    #4
    How does VAT refund work at the London Apple Store?
     
  5. theluggage, Jul 6, 2016
    Last edited: Jul 6, 2016

    theluggage macrumors 68030

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    #5
    Quick math check: Sterling peaked at $1.50 the day before the vote. Currently $1.2952 (from BBC)

    £3000 x $1.5 = $4500
    £3000 x $1.2952 = $3886
    Difference: $614
    (Or, just take 20% of $4500)

    ...so $1000 is a bit of an exaggeration, especially as the pound did spike just before the vote (and the 1.27 you mention was todays 'trough'). Whether the £ is going to rise, stay the same or go lower long term is a matter for the Politics & Religion forum [edit: oh, just noticed that its already there...] (I'll limit myself to pointing out that Brexit hasn't actually happened yet so the current market volatility doesn't really prove anything for either side of the argument).

    That's the key qualifier: a lot of people are waiting for updated Macs, so you're taking a risk if you panic buy an old model.

    What might help is to consider the "cost per year of useful life": say you expect that £3000 Mac to be "current" for 5 years, that's ~20% of the sticker price per year. So, if you wait for a new model and the price goes up by 20% but the newer tech takes an extra year before it gets hopelessly out-of-date you have, ballpark, broken even.
     
  6. OllyW Moderator

    OllyW

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    #6
    The exchange rate has fell by 19% since the iPhone 6S was released last September. Then Apple were getting $690 for the base 16GB model ($649 in the US store) and today they will only get $581. They were obviously quids in when the bulk of the sales were made before Xmas so they should be able to withstand the loss in profits in the short term.

    If they just banged 20% on the ticket price to maintain their profits it would add £100 to the iPhone which could drastically affect the sales, as they will already be falling away due to rumours of the new iPhone 7 in September. It's going to be interesting to see how they react over the next few months.
     
  7. dannys1 thread starter Suspended

    dannys1

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    #7
    It's not "more than likely" temporary though is it - it's actually more than likely a long term thing that may well get worse - only the most head in the clouds Brexiter would say it's temporary.

    Even without the financial crash, the complete political melt down and the lack of a plan, there still wasn't a single decent recent to vote leave and now you'd have to be a complete deluded idiot (or not in business/travel/anything other than insularly living in a tiny town and spending the bare minimum) to think it's good.

    The guy who said "The BBC tend to be pro-EU" made me laugh - there's no bias or slant in reporting the facts that Dell and OnePlusOne have increased prices (so far). A friends company who buys from Italy are looking at increasing their prices at the moment as its obviously affected buying in Euro's too.

    I very much doubt the pound will recover about 1.40 this year and I expect Apple will increase the price of the 2016 MacBook Pro's to make up for it rather than increase the 2015 release price. I'm not as bothered about the iPhone the price is too low to make too much difference and its only a once a year purchase anyway, £50 difference in price I wouldn't even notice.
     
  8. thermodynamic Suspended

    thermodynamic

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    #8
    "Old" being a 2015 model... not too shabby and it presumes that no new models will ever come out with massive performance hardware improvements per generation... 10% between cpu generation isn't necessarily worth several hundred more unless you're a really big business where every nanosecond counts.
     
  9. Ap0ks macrumors 6502

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    #9
    I thought this place had avoided this crap.

    I didn't vote leave, but the attitude of some of the remain voters is just downright appalling and embarrassing. This quote just underlines how pathetic people have become over this:
    Both campaigns were ridiculous and were spouting lies and scaremongering, praying on concerns of the electorate without giving proper facts. Now you're here telling us we're in a full-blown downward spiral to Armageddon - it doesn't help anyone and just makes oneself look like an over-entitled generation Y/Z because it didn't go the way you wanted it to.
     
  10. cube macrumors G5

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    #10
    CETA will be discussed in the country parliaments.

    One reason less to Brexit.
     
  11. Eraserhead macrumors G4

    Eraserhead

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    #11
    What lies did Remain tell?

    The financial markets have done very badly. And chances are we will stay after all.
     
  12. cableguy84 macrumors 6502a

    cableguy84

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    #12
    The pound will rise again, just a matter of time. Most likely when all the Brexit hype dies down
     
  13. VulchR macrumors 68020

    VulchR

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    #13
    I am glad so many here are optimistic. Some economists and currency traders are not: e.g., see http://www.bbc.co.uk/news/business-36721278. I guess we'll see. Already, though, I have seen price hikes of 8% on scientific equipment that were made public within a very short time after Brexit. I think we'll see a lot price hikes on imported goods sooner rather than later. We might even see ... inflation.
     
  14. theluggage macrumors 68030

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    #14
    The CPU speed isn't what's making me start to think about upgrading my early 2011 MBP sometime in the next year - as you say, even 3 or so generations of CPU isn't a night-and-day difference. What is starting to become inconvenient is the lack of USB-3, no 4k support, older WiFi standard, Thunderbolt 1 (and only 1 port) older version of Bluetooth etc. and the GPU becoming a bit un-special.

    The next generation of Macs are expected to have USB-C/USB 3.1/Thunderbolt 3 + maybe better support for 4k/5k displays etc. (and is there a new Bluetooth version coming along?) Lack of those may not be a deal breaker in 2016, but 5 years down the line those could be the norm, and having a 2015 model without them could easily make it "obsolescent" a year or two earlier.

    Again: Brexit hasn't happened yet - this is just the pre-Brexit uncertainty. There will be another upset when the government's Brexit strategy is announced, a blip when Article 50 is invoked, a roller coaster during the negotiations, another panic when the UK actually leaves, more uncertainty if Scotland picks up their caber and goes home and then the real recession when (unless you're in complete la-la-la-I-can't hear-you denial mode) at least some big companies pull out of the UK and re-locate back inside the EU.

    After that then who knows... Maybe there is a bright future for an independent, freely-trading UK under its sovereign, democratic government with their impressive record of wise leadership (just read the news...) - I sincerely hope there is - but getting there won't be painless and it sure wont be in the shops for Christmas. The major fault of the Leave campaign was the idea that we can perform such a major economic U-turn without cost.

    The alternative is that we get a Remainer PM and they manage to fudge together some double-talk deal whereby Leave means Remain and we can Take Back Control provided we don't Actually Use Our Control... although people will not be happy about that - it may be just storing up more uncertainty for later.
     
  15. Ap0ks macrumors 6502

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    #15
    The main lie/scaremongering from remain would be that a vote to leave would result in an emergency budget the following day/week - that hasn't happened yet and remains highly unlikely to. It'd be pretty naive to take everything politicians say at face value whatever camp they've pitched their tent in.

    Yes, the markets have done badly but that's because of the uncertainty over what's happened (nothing really), what is due to happen (when Article 50 in invoked) and how it happens (how harsh or fair the negotiations are). None of that can be answered right now because nobody knows the future, will the markets go back up? most likely given time and if the UK can negotiate some decent terms, will the markets keep falling? again most likely until the uncertainty clears.

    Chances are we'll stay in the EU? I wouldn't be so sure of that, all three Tory leadership candidates have said they'll invoke Article 50 at some point in time. With the EU not wanting any discussion until that happens it's definitely going to get worse, and possibly stay that way for a while, before it gets better.

    I'm not optimistic, just realistic - the people have voted and we need to accept that 52% of the country aren't happy with the EU for whatever reason (immigration, money, NHS, straight bananas, Australia in Eurovision).

    It's futile arguing over a referendum that has already taken place, and no matter what the reason for them to vote one way or the other there's certainly no need to resort to calling people "deluded idiots". That sort of thing is just going to increase the divide between people when we really need to be decreasing it.
     
  16. Eraserhead macrumors G4

    Eraserhead

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    #16
    I agree that the emergency budget was a bad lie. However there were far more equally significant ones from the leave campaign.
     
  17. Ap0ks macrumors 6502

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    #17
    Yep, I don't dispute that for a second. Nigel Farage even admitted the lies the very next morning.

    I'm just embarrassed by the amount of people calling the other side idiots for voting the way they did, without knowing their circumstances or why they voted the way they did. It's just childish and unnecessary.
     
  18. dannys1 thread starter Suspended

    dannys1

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    #18
    All three Tory candidates know we NEED to be part of the single market though - which means the Norway model or similar - which means paying technically more for less benefits, just to get access in it, oh and having no voting rights or democracy with MEPs in the EU what so ever on the legislation we have to enact. So basically those that voted to "take back power" are more than likely ended up voting for less sovereignty.

    It'd be hilarious if it wasn't so painfully dumb and obvious.
    --- Post Merged, Jul 7, 2016 ---
    I think its mainly because there isn't a single good reason to leave the EU - even the actually educated reasons such as a fear of the intricacies of the Transatlantic Trade and Investment Partnership and the worries of a monolithic neo-liberal capitalistic regime can be quite easily rebuffed.

    All the other reasons are either incorrect, horrible, foolish or won't happen anyway. It's not really quality democracy when nearly the majority of those that voted leave did so based on things that won't happen - thats called manipulating the dumb public, like it's some kind of XFactor TV show.
     
  19. VulchR macrumors 68020

    VulchR

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    #19
    Erm, by my reckoning 17,410,742 Brexiters out of a total population in the UK of 65,117,502 is 26.7%. Of course, if we leave out the people who will be affected most by this – the young – and focus on registered voters only, then the value is 17,410,742 out of 46,501,241, which means only 37.4% of registered voters favoured Brexit. We'll assume the 27.8% who didn't vote don't care, leaving 34.8% who wanted to stay in the EU. Graphically the vote breaks down like this with respect to the registered voters:

    Untitled.jpg

    While I acknowledge that Brexit won the EU referendum fair and square, don't act like the majority of the country have voted for this, for they haven't. It is hardly a massive mandate given the magnitude of the change proposed.

    As I write this, the £ has dropped from a high of $1.58/£ earlier this year to $1.30/£ now. This is an indication of what the financial system thinks of the UK's prospects.
     
  20. Ap0ks macrumors 6502

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    #20
    I'm not acting in any such way and I don't appreciate your tone. I was simply pointing out that more people voted to leave than stay, yes perhaps I should have said 52% of those that voted rather than 52% of the country, and that now we all have to deal with it.
     
  21. cube macrumors G5

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    #21
    Nobody answered regarding whether in the UK there are official Apple retailers providing the VAT refund paperwork.
     
  22. unlinked macrumors 6502a

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    #22
    What percentage would be?
     
  23. cube macrumors G5

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    #23
    The referendum was only "won" because it was improperly designed. No need to drag the country down with it.
     
  24. VulchR, Jul 7, 2016
    Last edited: Jul 7, 2016

    VulchR macrumors 68020

    VulchR

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    #24
    >51% of registered voters IMO, but that is not how the EU referendum was run, so I think the UK Parliament should abide by the outcome even if it is painful.

    I apologise. I did not intend to misrepresent what you said. I admit I am a little touchy on the subject these days. Scientific collaboration between UK and EU researchers has already been affected even though we're not out of the EU and a savings plan my ex and I set up for the kids was haemorrhaging value so quickly due to the exchange rate we've decided to cash it in. In any case, sorry. :oops:
     
  25. theluggage macrumors 68030

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    #25
    ...which the current UK government are huge fans of and would probably, given the chance, sign up to without the sort of scrutiny it is being given in Europe. How do people think that free trade deals with the rest of the world work?

    UK: Tally Ho China/USA/India - remember what a topping time we had in the good old days of Empire? What say you let us export stuff to you without tariffs or customs restrictions?
    China/USA/India: I say old chap, what a spiffing idea, absolutely, and because we're such good pals and have completely forgotten about the war of independence, the opium trade, the East India company etc. we're not going to be so dashed unsporting as to ask you to make any sort of concessions on things like your own trading standards, immigration policy, rules on movement of money and so on. Oh, and do keep denouncing our human rights policies in the UN. Fancy a Pimms?
     

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