British Sterling is backed up by a strong sense of Britishness! We have a law whereby if the Pound ever dips below the value of a former colony the Queen explodes. We find it a far better way of insuring against inflation than poxy Gold stores!
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Why is the MacBook pro so costly?
- Thread starter Bubble99
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British Sterling is backed up by a strong sense of Britishness! We have a law whereby if the Pound ever dips below the value of a former colony the Queen explodes. We find it a far better way of insuring against inflation than poxy Gold stores!
So in other words the government just prints money to inflate the currency more than it really should be.
Are you telling me they're only making a 30% profit on a computer that's priced at $2000 ?
Per computer? They'll be netting a much higher gross. But overall project gross margins tend to be around 30-40% yes.
The physical cost of manufacture, let's say parts, is going to be around $600-900, then add labour costs and shipping/sales, even it up to $1000 or 50% gross. Those funds will then go to paying for things like R&D, marketing/advertising, and support (With a percentage left aside for potential warranty repairs and customer support). Which could be 25% gross, so the cost is $1500. Then they'll set aside further funds for future re-investment, such as developing the next iteration or investing in manufacturing to reduce costs etc. So that'll be another 12.5%. So in the end they'll net around ~10% in net profit. Which will go towards bonuses, shareholders or company investment.
If you just look at the cost of the machine it's easy to think it's this huge profit they're making. But you need to look at the overall cost. Say it cost $1 million to bring to the stores, and each unit cost $2000, and they want to net 10%. This means they need to sell 550 units to achieve this.
So scale this up (Speculative on total Mac sales, real world data is out there if you want). Apple sold year on year around 4.1 million Macs (Average price around $1500) and the gross revenue is around $6.1bn. Minus the 30% leaves around $4.2bn, so that's the cost of bringing it to store. Meaning $1.8bn gross, and doing all the maths leaves around $180 million in pure profit.
Now that may seem like a lot (And it's all speculative again, I'm working from rough numbers because this is a forum and I can only be bothered to do so much), but it all has to be looked at as a percentage. Thankfully Apple employ people far better with numbers and business than myself to ensure that healthy profit margin, but that's essentially what you're looking at here.
Paid 4124 USD for the below build (in Istanbul) in December 2016
MacBook Pro (15-inch, 2016)
- 2.9GHz Quad-core Intel Core i7
- 16GB 2133MHz LPDDR3 SDRAM
- Radeon Pro 460 with 4GB VRAM
- 1TB PCIe-based SSD
Same build right now (for 2017 model) is 4661 USD
MacBook Pro (15-inch, 2016)
- 2.9GHz Quad-core Intel Core i7
- 16GB 2133MHz LPDDR3 SDRAM
- Radeon Pro 460 with 4GB VRAM
- 1TB PCIe-based SSD
Same build right now (for 2017 model) is 4661 USD
Maybe complain to Erdogan for screwing up your country's relationship with just about everyone else.
I don't complain "to" him, but "about" him
Though prices are high due to taxes, nothing to do with Apple
Just an occasional project manager, glad it passed a cost accountant though...
The Lira has about 8% inflation, the economy turbulent, and the future uncertain. It won't be just Apple attempting to predict the future and set realistic prices unfortunately, I'd imagine any import into the country will be suffering similar hikes at the moment (There could be other issues I'm not aware of here like border taxes, import costs, government interference etc.). If you add on the inflation it comes to $4454, at the price of $4661 it's around 13% higher. Which just means Apple are predicting things are going to get a whole lot worse (Otherwise they'd be adjusting prices weekly). And looking at any graph of the Lira currency fluctuations it's pretty easy to see why.
Basically the Lira is an incredibly weak currency, and converting it to dollars will always appear dramatic.
Pretty much this, though from figures I've seen, I believe their net profits are around the 20% mark, rather than 10%.
Don't get caught complaining about him though. A famous US basketball player says Erdogan arrested his father because the player spoke out against Erdogan.
Just an occasional project manager, glad it passed a cost accountant though...
The Lira has about 8% inflation, the economy turbulent, and the future uncertain. It won't be just Apple attempting to predict the future and set realistic prices unfortunately, I'd imagine any import into the country will be suffering similar hikes at the moment (There could be other issues I'm not aware of here like border taxes, import costs, government interference etc.). If you add on the inflation it comes to $4454, at the price of $4661 it's around 13% higher. Which just means Apple are predicting things are going to get a whole lot worse (Otherwise they'd be adjusting prices weekly). And looking at any graph of the Lira currency fluctuations it's pretty easy to see why.
Basically the Lira is an incredibly weak currency, and converting it to dollars will always appear dramatic.
Actually Lira went up these past few months. 1 USD used to be 3.9 Lira in February, now below 3.5 Lira. Apple may increase prices predicting a drop in Lira, but doesn't decrease prices when Lira value increases and USD drops.
These don't affect me anymore though as I work and live abroad and earn my salary in USD
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Hoping he doesn't read MacrumorsDon't get caught complaining about him though. A famous US basketball player says Erdogan arrested his father because the player spoke out against Erdogan.
It is compared to British Pound, US dollar and Euro.
How strong a countries currency is well base on how good the country is economy.
Canada and New Zealand are not strong economy that they where before. Both countries have major government debt and major trade deficit. And per GDP it not like it was before.
You want a strong currency the government must have the will power to improve the economic conditions.
Like say in other post it well it not just Canada currency is becoming worthless but out of control housing cost and middle class gone among young people.
Long all good old days of dad with 8 or 7 grade education working at car company or warehouse buying kids and stay HOME wife nice big SUV and nice house with only one person working. So called emerging middle class of 50's to late 80's.
Look at what happen to Germany when you needed wheelbarrow of money to by a loaf of bread. There money was so worthless it lost all value.
A 13 inch MacBook pro base model CA $1,729 almost $2,000 only 271 difference shows just how worthless your money is. When you have to add $430 for the difference of $1,299
And I would not be surprised in year or two that 13 inch MacBook pro cost well over $2,000 in Canada!!! Well the US is at $1,299
What going to happen in 10 to 15 years when most energy comes from non fossil fuels? Are you going to need wheelbarrow of money to by a loaf of bread. Is that 13 inch MacBook pro going to cost well over $10,000 or more.
Whilst that's not quite right, you seem to have mixed several economic situations into one big forecast. I do appreciate how this thread discussing costs is now using mathematics instead of knee-jerk opinions.
The best way to think of global currencies is that it's all one big faith system, in that none of it really exists, we all just believe it does. And so long as no-one does anything drastic like try take all their money out of the bank, everything tends to be okay.
I don't think Canada's current rate of 1% inflation is going to result in the kind of hyperinflation Germany experienced post WWI. Which was caused by a host of factors, most notably national debt following the war with repayment demands from the Allies. It was also a leading cause of the instability and frustration that lead Hitler to power.
So basically, no one in the world in interested in letting that happen again which is why it's a pretty important case study on what not to do.
Anyway I'm not an economist or accountant, that's just a basic understanding of currency and history.
Don't forget that if your county forces a >1 year standard warranty, that will add to the price compared US prices. Some countries like Singapore and Brazil charge huge import duties for products with no domestic parts/labor involved in manufacture. Other countries charge less onerous import duties.
Also, if your country forces new product replacements over refurbished products, that too will add to standard and/or extended warranty costs.
Also, if your country forces new product replacements over refurbished products, that too will add to standard and/or extended warranty costs.
Canada has low inflation so it not inflation problem.
Canada middle class is almost all gone now where most 20's old's and 30's old's live with there parents and paying very large students loans may make the Canadian dollar worse along with most housing buyers being older people.
I can't speak for Canada. But I can speak for New Zealand. Things are hugely expensive here in comparison to overseas. Quality of life is not bad and it's a beautiful country. But it comes at a $$$$cost$$$$.
New Zealand is about the same size as the United Kingdom. But we only have 4.7 million people. That really effects domestic revenue streams.
New Zealand is about the same size as the United Kingdom. But we only have 4.7 million people. That really effects domestic revenue streams.
That would be this Adam Smith
I guess no one teaches this stuff now (?)
The thought may be outside of the scope of this thread, eh?
I guess no one teaches this stuff now (?)
The thought may be outside of the scope of this thread, eh?
Why so costly?
Because they gotz the product you want, and you gotz da money they want!
Aside: didn't Adam Smith have something to say about that?
It has nothing to do with Apple. Apple is not setting the price.
Canada currency is just really weak now compared to the US currency.
Yes that is $1,300 dollar US is 1,750 Canadian exchange rate!! Yes wow, wow, this is $450 more!!!! Because of the weak currency.
Every year Canada currency have been going down and have been going down from all time high from year 2007 to 2012 when Canada currency was almost at par with US currency.
The US have recovered well from the recession well Canada has not and is still struggling .