Weak Pound and Hiked Prices Make Apple Macs More Expensive for Brits

[thermodynamic]

In related news, Microsoft just introduced a $3000 i5 machine with 8 gigs RAM.

There are PLENTY of lower priced options on the market. But if you want the best (and the new MBP are by far and away the best laptops), pony up.

As a professional, I don't care about €200 or €300 more, and I know the resale value will be HUGE as always.

TOC is for men, sticker price is for kids.

Yeah, but the Studio also doubles as a laptop. The iMac is immobile. Also, comparing a Surface Studio to a comparable iMac (not easy to do since the iMacs still use years' old technology, more pitiful GPU, and have no touch screen capability or stylus... dollar per dollar, the iMac is still overpriced.)

Having said all that, the Surface Studio is still very overpriced, HP and particularly Dell also offer touch-enabled systems (presumably mid-level or better IPS panels, too): https://www.engadget.com/2016/10/26/surface-studio-vs-the-competition/

How can these companies survive when more and more customers can't afford these things?

 

[Zombie Acorn]

If anyone is looking for a powerful laptop and doesn't need it for design work I'd suggest a System 76. Pretty solid company and still small enough to give a **** about their customers.

 

[insomniac86]

Thinness and weight, the only reasons I want to upgrade my 2010 MBP which is still fast enough for me with a Core2Duo processor. It's good to go for thinness, because it also reduces weight. But independent from that it's also good to drop USB-A. Desktop PCs never quite abandoned PS/2 and build the old mouse and keyboard ports next to the new USB ports. As a result peripherals with PS/2 plugs kept for sale and the transition to the new port was never completed. What Apple should do is to include a free USB-C to USB-A adapter with every Mac sold for the first year, because at the moment almost everyone will still need that adapter. But that's complaining about price again, not the port situation itself.

Your MBP is fairly thick and heavy though, I owned a 2008 and 2011 model and though nice, they are heavy.
Currently I own a 2015 rMBP and a 2013 Air. I love the Air and how light it is... but I never use my rMBP and think "Oh dam this is thick, I wish it was thinner". I'd rather have extra connectivity options than go super thin (at this point in time).

Good point regarding the PS/2 ports. It's amazing that we still see those today.

 

[weckart]

You do realize there's price elasticity and that by raising prices Apple will likely make less profit? Not to mention, Apple took a loss for the 4 months that the pound was significantly cheaper against the dollar and the new price hike just makes them of equal value. Also, how do you account for the countries where they lowered prices?

Apple seems to think it deals in Giffen goods.

 

[H2SO4]

You do realize there's price elasticity and that by raising prices Apple will likely make less profit? Not to mention, Apple took a loss for the 4 months that the pound was significantly cheaper against the dollar and the new price hike just makes them of equal value. Also, how do you account for the countries where they lowered prices?

I do but that works both ways, how about they reduce the unit cost by £500 and then get more sales as a result?
Also since the Brexit incident, (assuming that’s the real and only reason for the increase), I’ve been shopping a number of times for a number of products of different quantities and from different places.
Not once have I seen a 20% increase in prices. Diesel hasn't suddenly gone from £1.15/L to £1.38/L.

 

[steve62388]

So what? Hitler's best result was 43,9% for the NSDAP and yet you bombed all of Germany. One gets punished for the sins of his nation. Their are no individual MBP prices for Remain voters and there shouldn't.

Well that escalated quickly!

https://en.wikipedia.org/wiki/Godwin's_law
[doublepost=1477725107][/doublepost]

Dude! Did you see the results? It was 49% vs 51%.

A lot of us over here are sad for much more significant reasons than new MacBook prices!

48% - 52%. Either you haven't grasped how rounding works or you're deliberately misrepresenting the figures.

 

[macgabe]

by raising prices Apple will likely make less profit?

Exactly. The strength of the dollar is why Apple has just reported its first year over year drop in earnings.

The effect is not restricted to Apple. A big cruise liner CEO (Carnival I think) was asked yesterday on CNBC how the drop in sterling had affected their business. He said that the UK was their number 2 market after the US. And that they had raised their prices when sterling fell. And had consequently seen a big drop in bookings.

There is no easy alternative for a business. If you raise prices you lose sales, but there's no point in subsidizing the consumer - why should Brit get a special deal after their self-inflicted injury? Digby Jones, the rabid little Englander, admitted before the vote that "we'll have to endure some hardships if we leave the EU but it will be worth it". It was worth it for him because as a businessman a lot of his competition will be removed. And anyway he will likely have put much of his assets in dollars etc. So he's making bank. Apparently not all the voters are. But it was worth it right?

Brits can always console themselves that things were worse in Russia. After Putin invaded Ukraine, Apple doubled prices as the rouble collapsed. Funny how nationalism affects prices. I hear Macs are unaffordable in Venezuela too. And if you're really hard up and want to punish Apple by withdrawing your clientele, you may not be able to afford a new Surface, but why not try a Samsung? You can get a 2nd hand, barely used, unrecalled Note 7 at very reasonable prices. Samsung was always the brand that disgruntled Apple users threatened to change allegiance to in the past, though funnily the name hasn't been mentioned in this thread yet, lol!

 

[steve62388]

Actually, I converted the base machine as dollar price to pounds at the current exchange rate and added on vat... it comes to £1483, so, your statement is untrue. It's on sale for less than the current exchange rate....

Did you remember to add on US sales tax?

 

[macgabe]

Diesel hasn't suddenly gone from £1.15/L to £1.38/L.

1. The crude oil price (in dollars) happened to fall around June 23 - probably not unrelated to Brexit as there were recessionary fears. It has now recovered somewhat but is still slightly lower now than it was then, so that has masked the effect of sterling's fall. In fact you would have seen your pump prices fall had it not been for the fall in the pound.
2. Fuel prices in the UK don't jump by 25% when crude oil jumps by 25% because most of what you pay at the pump in the UK is tax and that doesn't change much.
3. It takes a little while for the effect to filter through given futures prices etc.

But rest assured petrol and diesel prices will rise in pounds if crude reaches $50 again! Something to look forward to… Other things that will see price increases, all imported food (that's most of your food), all imported electronics (that's all of your electronics), clothes, most cars, in fact pretty much all manufactured items.

 

[AT06]

But didn't the brexiteers want to leave the EU because of too many foreigners in the U.K. ? How will they feel when for ex. Spanish flock the U.K. To buy cheap iPhone ? Oh the irony

We voted out to take our country back. To stand up against overpaid EU fat cats dictating against us and not for us, savaging a country with an incredible history and tradition that few others can compare to; that for centuries has been at the forefront of progression and innovation in all aspects of politics, policy, trade, technology, industry, and countless other sectors. For our size as a nation, few others have had a larger impact on history than Great Britain.

I will be proud when in 5 years time, even if it is in a decade or more, the inevitable outcome is a stronger Britain where the pound rallies to its former highs and remains there whilst the EU continues to stagnate. Where we can dictate who we want to accept into our country, and ensure that they cannot take advantage of our healthcare and benefits systems whilst contributing nothing to the British economy.

Spain, like all EU countries, are blind to the fact that their club has run out of control. The EU is in a continuous state of panic mode - always reactive, and never proactive in its approach. There are layers upon layers of greed and self interest built into the EU project, and it's getting worse. I'm not saying the EU will fail, but I'm darn sure it will stagnate for a much longer time than the Britain will. So enjoy it whilst you can, because my bet is your country and the EU will continue to be mediocre, whilst we put the Great back into Great Britain.
[doublepost=1477727264][/doublepost]

1. The crude oil price (in dollars) happened to fall around June 23 - probably not unrelated to Brexit as there were recessionary fears. It has now recovered somewhat but is still slightly lower now than it was then, so that has masked the effect of sterling's fall. In fact you would have seen your pump prices fall had it not been for the fall in the pound.
2. Fuel prices in the UK don't jump by 25% when crude oil jumps by 25% because most of what you pay at the pump in the UK is tax and that doesn't change much.
3. It takes a little while for the effect to filter through given futures prices etc.

But rest assured petrol and diesel prices will rise in pounds if crude reaches $50 again! Something to look forward to… Other things that will see price increases, all imported food (that's most of your food), all imported electronics (that's all of your electronics), clothes, most cars, in fact pretty much all manufactured items.

Your looking short term. Those that had the courage to vote to leave are willing to pay the price for the long term and inevitable gains. Anyone who thinks that in 5 years time the pound will not have rallied back obviously has never looked at historic exchange rates. The pound always recovers, and in this instance I'm betting it recovers to be far stronger and more resilient.

 

[steve62388]

It's not just Apple. Microsoft (and others) is also increasing all their prices in the UK, by as much as 22%. Did you hear that, Brexiters? Twenty-two percent increase!!

Microsoft to raise prices in UK after pound plunges (Reuters)

With the drop in the value of the pound Microsoft has to pay much higher manufacturing costs. Buying and importing the raw ingredients for their UK software from overseas territories which sell in US dollars has just got a lot more expensive.

/s

Microsoft: we'll charge what you can bear
http://www.itnews.com.au/news/microsoft-to-aussies-well-charge-what-you-can-bear-337464

 

[The-Real-Deal82]

As the opinions of many who have discussed this through the media here suggest, many will simply look at cheaper alternatives. Apple are the only ones who lose out in this situation.

 

[niun]

Those that had the courage to vote to leave are willing to pay the price for the long term and inevitable gains.

Well, lets hope hey... I don't see any courage in running and hiding - which is exactly what we've done.

Lets see if we manage to hold onto the banking sector. Without it things will become very interesting.

Also, it's a bit of a shame we no longer have India and the entire middle east as our slave market.. I take it that's what you meant by, 'For our size as a nation, few others have had a larger impact on history than Great Britain.'

 

[H2SO4]

1. The crude oil price (in dollars) happened to fall around June 23 - probably not unrelated to Brexit as there were recessionary fears. It has now recovered somewhat but is still slightly lower now than it was then, so that has masked the effect of sterling's fall. In fact you would have seen your pump prices fall had it not been for the fall in the pound.
2. Fuel prices in the UK don't jump by 25% when crude oil jumps by 25% because most of what you pay at the pump in the UK is tax and that doesn't change much.
3. It takes a little while for the effect to filter through given futures prices etc.

But rest assured petrol and diesel prices will rise in pounds if crude reaches $50 again! Something to look forward to… Other things that will see price increases, all imported food (that's most of your food), all imported electronics (that's all of your electronics), clothes, most cars, in fact pretty much all manufactured items.

Great. I live here and can see the effects right now, I challenge you; Outside of these Mac price increases how many 20% increases can you find me?

 

[0488568]

I live in the U.K. and voted out and if that means buying and cheaper android phone and windows laptop then so be it. I value my reasons for voting out more than owning the latest Apple gear, goodbye Apple.

Good job pal. Now you get to pay more for everything and your precious pound is in par with the euro. No more cheap vacations to our beaches. No more free movement through Europe. What have you gained?

 

[niun]

I live in the U.K. and voted out and if that means buying and cheaper android phone and windows laptop then so be it. I value my reasons for voting out more than owning the latest Apple gear, goodbye Apple.

Now, if only the people who voted out could subsidise the remain voters for the next decade we'd be sorted.

 

[0098386]

I've been after a new iMac and waited for upgrades this week. Instead I'm in the process of building my own desktop (for VR ). Sorry Apple! Now it's looking like I won't be spending my usual £3k a year in your shop, after 4 years you might as well sack a worker.
[doublepost=1477735774][/doublepost]

Good job pal. Now you get to pay more for everything and your precious pound is in par with the euro. No more cheap vacations to our beaches. No more free movement through Europe. What have you gained?

Oh there's no reasoning with those types. They don't care that literally all store prices are going to go up, fuel is already going up. But they don't care about people who struggled before the hikes, why would they care now?

(Personally I'm excited. I voted Remain because I loved what the Uk was. Now I'm hoping that Scotland gets independence so my partner and I can move there (she's Scottish so passport stuff won't be difficult), or we use my family tree and move to Poland or Germany. My business is mobile so I can just up and leave and pay my taxes elsewhere. I'm genuinely excited! It's a kick in the arse!)

 

[0488568]

I'm an immigrant my self and its not fun having to move around and not having a permanent home. I'm sorry people like you get to suffer for the stupidity of the masses.

 

[deaglecat]

UK folk need to understand that current prices will be seen as BARGAIN basement when the pound falls further... and it will.

If you need kit... buy it now.

 

[apolloa]

It has nothing to do with Brexit, they have used that as nothing more the an excuse because I can't beleieve they need to increase costs by over 30% because of a weak pound which will increase next year most likely..
Other retailers and markets will drop the price of their products if they increase them, Apple will not. It is price gouging and its disgusting. I feel the UK is a market it will only lose share to now.

An example is the iPad Pro 32GB 9.7" had its price increased from 499 to 549 and they blamed Brexit, and considering the cost of the older MacBook, it's a huge price increase they've put on the new ones.

So I don't buy into the Brexit argument, despite the fact other markets are yet to increase costs or are soaking it up themselves, but Apples mo is big profit margins first and foremost.
[doublepost=1477739236][/doublepost]

Nope your Microsoft and Google products will also be going up 25%. Because they're made outside of the UK and the pound is now worth 25% less.

Whether it's Marmite, PG Tips or Apple all imported prices must rise if sellers are not going to take a loss or lose margin. It's really quite simple. Just like if you go to France you will see that croissants are now 25% more expensive for you. They're not doing it to punish you. It's just your money isn't worth as much as it was a few weeks ago.

UK politicians have been devaluing the pound periodically for decades to get out of trouble. Wilson did it in 1971 ("the pound in your pocket…") - you may not be old enough to remember, but that was not a great time for the British economy. Thatcher also did it (against her will) when she pulled out of the ERM - in that case though it did spur growth eventually and in any case, as we all know, Britain did converge economically with the EU and the £ erased its losses.

Of course worldwide growth was much greater in the early nineties so Britain (and all the West) rode on a wave of expanding markets in the developing world. Now Britain will likely have inflation combined with tepid growth; i.e. stagflation, the nightmare scenario.

The company that owns PG Tips and Marmite got told to get lost by Tesco when it tried to increase prices, so they are swallowing the price increases themselves for the moment, Apple just dumps ALL of any increase in costs they get onto their customers, and Apple is vastly richer then a company that owns Marmite.

 

[deaglecat]

It has nothing to do with Brexit, they have used that as nothing more the an excuse because I can't beleieve they need to increase costs by over 30% because of a weak pound which will increase next year most likely..
Other retailers and markets will drop the price of their products if they increase them, Apple will not. It is price gouging and its disgusting. I feel the UK is a market it will only lose share to now.

An example is the iPad Pro 32GB 9.7" had its price increased from 499 to 549 and they blamed Brexit, and considering the cost of the older MacBook, it's a huge price increase they've put on the new ones.

So I don't buy into the Brexit argument, despite the fact other markets are yet to increase costs or are soaking it up themselves, but Apples mo is big profit margins first and foremost.
[doublepost=1477739236][/doublepost]

The company that owns PG Tips and Marmite got told to get lost by Tesco when it tried to increase prices, so they are swallowing the price increases themselves for the moment, Apple just dumps ALL of any increase in costs they get onto their customers, and Apple is vastly richer then a company that owns Marmite.

Brexit is definitely being blamed for the £ to $ fall. Right or wrongly it is widely recognised as the cause.

 

[apolloa]

Brexit - 40 years of trade deals, millions of hours of complex negotiations by intelligent, skilled, knowledgable people working hard to represent their country in the best possible way, torn up in a day by proud nationalists. Everyone warned there would be consequences - they were reported as "scare-mongering" by the opportunistic politicians (Boris and May) who have now revealed they were actually pro-Europe but realised they could gain power by hitching their mast to the wave of populism. The only solution now is devaluation. Britain, you placed your bets, now live with the consequences…

Don't worry though your exports will be cheaper right? That should benefit the jewel in your tech crown, Arm Holdings, right? Oh wait the Japanese bought that - after BREXIT lol! Nevermind…

Actually May was in the remain side and it was proven again this week with MPs backing her that she was. So your assumption is incorrect.
[doublepost=1477740271][/doublepost]

Brexit is definitely being blamed for the £ to $ fall. Right or wrongly it is widely recognised as the cause.

It's market scare mongering, think about it, in the U.K. NOTHING has changed, not one thing since the vote, so who do you think has reduced the pounds value? It's not any markets or businesses, its traders because they are making millions from it, traders run the economy and they are incredibly powerful, when you have some that would screw over thousands of people so they could gloat to their mate next to them they made a bigger bonus that day, it highlights how rotten they are.
Traders always win no matter the conditions of the markets.

 

[H2SO4]

UK folk need to understand that current prices will be seen as BARGAIN basement when the pound falls further... and it will.

If you need kit... buy it now.

You may certainly have a point there I think a refurb now is more than the cost of new before.

 

[OllyW]

UK folk need to understand that current prices will be seen as BARGAIN basement when the pound falls further... and it will.

If you need kit... buy it now.

I fear you are right, it already seems that every time May brings up Brexit it goes down by at least a point. If she actually triggers Article 50 it's going to go into meltdown.

 

[robotica]

I fear you are right, it already seems that every time May brings up Brexit it goes down by at least a point. If she actually triggers Article 50 it's going to go into meltdown.

It's still very early days and I think things will get worse before they get better...but they will get better.
After all we have just opened the door to the entire planet to trade with.