Do you think Apple buys stuff from China providers in Yuans? Nop, but the Yuan/U$S relation is important because it keeps Apple providers costs down. If anybody is being screwed by Apple/Apple providers are the chinese workers that do their job for relatively "nothing".
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Why British iMac price increase is fair
- Thread starter HyperSnake
- Start date
- Sort by reaction score
Do you think Apple buys stuff from China providers in Yuans? Nop, but the Yuan/U$S relation is important because it keeps Apple providers costs down. If anybody is being screwed by Apple/Apple providers are the chinese workers that do their job for relatively "nothing".
Not only is that giant paragraph really confusing to read, but did you read my post? Factoring out VAT, it was still far more expensive in the UK before. VAT is not 30% last time I checked
But, you don't need the Mac OS. There are certainly a lot of other operating systems to choose from and they can all accomplish the same tasks.
I still don't understand how you think Apple has no competition.
Please explain.
What would be more entertaining would be to hear your explanation of how Apple has competition. Granted there are other OSes out there but that wasn't what OllyW was saying...
These figures are rough, and not verified but still:
Average wage in UK (2005) : £22,411
Median wage in USA (2005) : $28,567
At £949 the baseline iMac costs 4.23% of an average wage in the UK
At $1299 (including 8% or so sales tax) the baseline iMac costs 4.55% of the median income in the USA.
This excludes cost of living, which is much higher in the UK, but it's interesting nonetheless.
4.55% of the UK average wage would put the price at £1,019, so psychologically, that is what our American counterparts have to acknowledge when considering a Macintosh computer.
Perhaps the real issue here, is that a good exchange rate has meant we in the UK have been shielded from Apple's really high prices to just being 'quite high', and now the exchange rate is roughly where it means average salary is more equal-ish between the countries (£22,411 * 1.4 = $31,375), we UK folk are maybe slightly aghast at the pricing of Apple.
From where I can see, there is no logical reason that Apple must base their prices on currency fluctuations, since it doesn't seem to have transpired into the rest of the computer market, which recognises the necessity of lower profit margins in a recession to maintain stock movement, and cash flow. Moreover, Apple does not sell products that are imported by someone else, it controls the whole process, unlike HP / Dell etc...
However, Apple's capital structure is unheard of in the rest of the industry, and by keeping prices high, they restrict their customers to those who will be happy to pay over-the-odds time and time again.
Good business strategy? Yes, and very much so, especially through a recession; it is an excellent opportunity for Apple to assess how their computers will sell in the worst of circumstances. If sales drop dramatically, Apple can lower prices, and everyone will be cheering cheap Macs (which ironically, will probably be about the same price as they were before the increase). If sales drop only slightly, Apple can laugh all the way to the bank.
Good for those looking for a cheap Mac? No, but I understand everyone's frustration. We live in a free market economy, and your own economic position is important in determining the makeup of the computer industry. Unfortunately, you shape the market by purchasing the alternative product (Dell etc...), and while Apple will take a hit from those NOT purchasing what they once would have, ultimately, you also suffer from the lack of Mac OS X. Those who go down the h@ckintosh route are too small a % to be significant, and always will be.
In truth, I think the fuss over prices is really over-stated by vocal people on this forum. For the majority of customers, a Mac is an unknown option, and for those aware, many will realise (even before the price increase) that it represents a more expensive option, part-for-part, than a Windows computer.
Once again, we return to the ease of use and lack of problems that result from purchasing a Macintosh computer. Personally, I value that day-in day-out reliability and stability, to the point where price is not a factor, within reason.
I needed a small, portable laptop with firewire, and my reaction was, "How much does Apple want for it?". I considered £719 very good value for me, as it will provide 1000 days or so of amazingly stable computing.
Not everyone is in the same boat, and that's good, it keeps Apple on their toes
Sources:
http://en.wikipedia.org/wiki/Personal_income_in_the_United_States
http://en.wikipedia.org/wiki/National_average_salary
Average wage in UK (2005) : £22,411
Median wage in USA (2005) : $28,567
At £949 the baseline iMac costs 4.23% of an average wage in the UK
At $1299 (including 8% or so sales tax) the baseline iMac costs 4.55% of the median income in the USA.
This excludes cost of living, which is much higher in the UK, but it's interesting nonetheless.
4.55% of the UK average wage would put the price at £1,019, so psychologically, that is what our American counterparts have to acknowledge when considering a Macintosh computer.
Perhaps the real issue here, is that a good exchange rate has meant we in the UK have been shielded from Apple's really high prices to just being 'quite high', and now the exchange rate is roughly where it means average salary is more equal-ish between the countries (£22,411 * 1.4 = $31,375), we UK folk are maybe slightly aghast at the pricing of Apple.
From where I can see, there is no logical reason that Apple must base their prices on currency fluctuations, since it doesn't seem to have transpired into the rest of the computer market, which recognises the necessity of lower profit margins in a recession to maintain stock movement, and cash flow. Moreover, Apple does not sell products that are imported by someone else, it controls the whole process, unlike HP / Dell etc...
However, Apple's capital structure is unheard of in the rest of the industry, and by keeping prices high, they restrict their customers to those who will be happy to pay over-the-odds time and time again.
Good business strategy? Yes, and very much so, especially through a recession; it is an excellent opportunity for Apple to assess how their computers will sell in the worst of circumstances. If sales drop dramatically, Apple can lower prices, and everyone will be cheering cheap Macs (which ironically, will probably be about the same price as they were before the increase). If sales drop only slightly, Apple can laugh all the way to the bank.
Good for those looking for a cheap Mac? No, but I understand everyone's frustration. We live in a free market economy, and your own economic position is important in determining the makeup of the computer industry. Unfortunately, you shape the market by purchasing the alternative product (Dell etc...), and while Apple will take a hit from those NOT purchasing what they once would have, ultimately, you also suffer from the lack of Mac OS X. Those who go down the h@ckintosh route are too small a % to be significant, and always will be.
In truth, I think the fuss over prices is really over-stated by vocal people on this forum. For the majority of customers, a Mac is an unknown option, and for those aware, many will realise (even before the price increase) that it represents a more expensive option, part-for-part, than a Windows computer.
Once again, we return to the ease of use and lack of problems that result from purchasing a Macintosh computer. Personally, I value that day-in day-out reliability and stability, to the point where price is not a factor, within reason.
I needed a small, portable laptop with firewire, and my reaction was, "How much does Apple want for it?". I considered £719 very good value for me, as it will provide 1000 days or so of amazingly stable computing.
Not everyone is in the same boat, and that's good, it keeps Apple on their toes
Sources:
http://en.wikipedia.org/wiki/Personal_income_in_the_United_States
http://en.wikipedia.org/wiki/National_average_salary
I think a lot of people feel the same way, but Windows 7 is not all its cracked up to be. You'll miss your mac...