Will We See Lower Prices of Apple Products

[CanadianGrit]

For those of you who are not like me (aka Political Geeks), you might be surprised to know that for the last year or so the Canadian Dollars has been on fire. Today it reached a 35-year high, when it surpassed the 93-cent mark. Yet no company, none what so ever, has reduced prices to reflect this change.

The Dollar has been rising for 4 years, yet we are paying the same amount for all products that we have always been paying. Most of the prices were set when the Canadian Dollar reached an all time low of 61.92 cents back in January 2002.

Well I just ordered a new White Macbook last night. I am quite excited to see mine come in, but I discovered that Americans are paying 83 dollars less for a Macbook than Canadians. Now I am student so I took advantage of the Student Discount, so I do save about 51 dollars Canadian over the regular price. But if the price was locked to the American Dollar I would be paying 83 dollars less. Don't get me started on Automobile companies, they are much worse.

Now don’t get me wrong, I don’t expect Apple to be pegging their prices to all currency fluctuations. But when the Apple Macbook was released, the Canadian Dollar was sitting at 82 cents US.

Today the dollar has climbed a full dime and if as expected the Bank of Canada raises Interest rates this month, we could see almost a 2 cents rise this month. Probably see the Canadian Dollar Paring with the American Dollar be the end of this year.

I'm wondering what's the point of a higher Canadian Currency, my buying power has actually gone down. All the while my export ability has also declined.

So I ask you, do you think Apple might reduce their prices for Canadians in the next few days/weeks? And Should I hold my Macbook order until the prices decline?

 

[Kermit the frog]

For those of you who are not like me (aka Political Geeks), you might be surprised to know that for the last year or so the Canadian Dollars has been on fire. Today it reached a 35-year high, when it surpassed the 93-cent mark. Yet no company, none what so ever, has reduced prices to reflect this change.

The Dollar has been rising for 4 years, yet we are paying the same amount for all products that we have always been paying. Most of the prices were set when the Canadian Dollar reached an all time low of 61.92 cents back in January 2002.

Well I just ordered a new White Macbook last night. I am quite excited to see mine come in, but I discovered that Americans are paying 83 dollars less for a Macbook than Canadians. Now I am student so I took advantage of the Student Discount, so I do save about 51 dollars Canadian over the regular price. But if the price was locked to the American Dollar I would be paying 83 dollars less. Don't get me started on Automobile companies, they are much worse.

Now don’t get me wrong, I don’t expect Apple to be pegging their prices to all currency fluctuations. But when the Apple Macbook was released, the Canadian Dollar was sitting at 82 cents US.

Today the dollar has climbed a full dime and if as expected the Bank of Canada raises Interest rates this month, we could see almost a 2 cents rise this month. Probably see the Canadian Dollar Paring with the American Dollar be the end of this year.

I'm wondering what's the point of a higher Canadian Currency, my buying power has actually gone down. All the while my export ability has also declined.

So I ask you, do you think Apple might reduce their prices for Canadians in the next few days/weeks? And Should I hold my Macbook order until the prices decline?

yes I agree with you but yes your paying for a very nice and powerful machine..but your also buying apple's name and their "peace of mind." I much rather spend extra money and deal with apple because they have probably the BEST customer service and tech support ever. Rather then buy a HP or Gateway where they treat you as a number rather then a person.

 

[sikkinixx]

I somehow doubt they will lower the price up here in the great white north. M$ still sells the Xbox 360 for a full $100 more in Canada than the US, which is a joke.... Apple likes money so why change the prices?


Oh well, at least we aren't getting as hosed as the Europeans seem to be with pretty much every product.

 

[flopticalcube]

When I bought my MacBook last November, the dollar was at 91cents so not much of a diff since the C2Ds came out. Non-US dollar currencies sometimes pay more for products than US dollar pegged currencies because the manufacturer wants a buffer against fluctuating exchange rates. The Canadian dollar could sink in the next 6 months. No one knows.

 

[ClassicBean]

I was just thinking about that myself. I think eventually Apple will adjust their prices to reflect this. They've done this in the past as our dollar climbed.

I think, however, you're most likely to see it with the arrival of new products. For example, when Apple releases a new iMac, the pricing here will reflect the dollar value - or when they lower the price of a product or upgrade the specs of their products.

 

[CanadianGrit]

yes I agree with you but yes your paying for a very nice and powerful machine..but your also buying apple's name and their "peace of mind." I much rather spend extra money and deal with apple because they have probably the BEST customer service and tech support ever. Rather then buy a HP or Gateway where they treat you as a number rather then a person.

Yeah your right, I did cancel it for a bit to try to see if I could get the Amazon deal; but that is available to only Americans .

I would rather go for a macbook any day over a PC (btw PC Corporations are doing the exact same thing). I have had enough with PCs .

But I’ve made peace with it, since it’s not just Apple. The difference with Apple is still a tolerable 83 dollars. Then again its not really gouging, because the dollar rise to these levels, this soon, has been quite unexpected.

I suspect the dollar will par with the American dollar by the end of the year or early next year, so we will likely see prices drop by the year. People will take notice if when the currencies par. I was just worried it was going to happen after ordering it

When I bought my MacBook last November, the dollar was at 91cents so not much of a diff since the C2Ds came out. Non-US dollar currencies sometimes pay more for products than US dollar pegged currencies because the manufacturer wants a buffer against fluctuating exchange rates. The Canadian dollar could sink in the next 6 months. No one knows.

Yep and we are going to see oil drop to 20 dollars a barrel.

Sorry about that I just had to throw that in. The Canadian Dollar has been pegged with Oil fluctuations, because my home province (Alberta) is a major oil producer.

Also the C2Ds prices were pegged to when the dollar was 85 cents.

I was just thinking about that myself. I think eventually Apple will adjust their prices to reflect this. They've done this in the past as our dollar climbed.

I think, however, you're most likely to see it with the arrival of new products. For example, when Apple releases a new iMac, the pricing here will reflect the dollar value - or when they lower the price of a product or upgrade the specs of their products.

Yeah I think it will be by the end of the year though. Once the dollar sees a very much more notable rise (such as paring with the American Currency). But people are starting to get angry, so it might happen sooner. Owell I've learned to make peace with it, it's not enough to really complain about. The Car Companies, as I mentioned, are much much worse. The difference for a compact car can be almost 2 or 3 thousand; lots of people have given up and are importing cars from the United States. There is a reason why Honda Canada can afford to give their eco-rebate (I am not talking about the Tory Government's rebate, but Honda's own rebate).

I somehow doubt they will lower the price up here in the great white north. M$ still sells the Xbox 360 for a full $100 more in Canada than the US, which is a joke.... Apple likes money so why change the prices?


Oh well, at least we aren't getting as hosed as the Europeans seem to be with pretty much every product.

The Europeans also pay much higher sales taxes and their sales taxes are included in the price tag. In Europe they have been slowly reducing income taxes and replacing them with higher consumption tax. If you go on Apple UK's site, you will notice that it says on the side inc. VAT.

 

[flopticalcube]

Yep and we are going to see oil drop to 20 dollars a barrel.

Sorry about that I just had to throw that in. The Canadian Dollar has been pegged with Oil fluctuations, because my home province (Alberta) is a major oil producer.

Also the C2Ds prices were pegged to when the dollar was 85 cents.

LOL! Such a typically Albertan answer! Dude, I am with you all the way on the direction of the Canadian dollar but I think it has more to do with the direction of the US dollar. Oil certainly helps but its not the only thing in the mix and the correlation with CAD is weak over the last 12 months. Canada is also a major producer of uranium, nickel and gold. Have you seen what these have done in the last few years?

Again, nobody knows where the Canadian dollar is going but we can all speculate. Companies lose money when they speculate so they would rather cost in currency fluctuations.

After looking at the data, I peg the CAD at closer to 89 cents at the announcement but its splitting hairs really.

We are such a small part of Apple's market that I doubt they are interested in constantly changing prices to match the currency.

The Europeans also pay much higher sales taxes and their sales taxes are included in the price tag. In Europe they have been slowly reducing income taxes and replacing them with higher consumption tax. If you go on Apple UK's site, you will notice that it says on the side inc. VAT.

Many things in Europe are much more expensive even with Value Added Taxes added in. The UK is not called Treasure Island for nothing.

 

[CanadianGrit]

LOL! Such a typically Albertan answer!

Lol from a very atypical Albertan, hence the name CanadianGrit not CanadianTory. Although I was campaign for the Liberals in Kleins old seat, that might just be changing.

On top of that I want to move to Toronto .

Dude, I am with you all the way on the direction of the Canadian dollar but I think it has more to do with the direction of the US dollar.

Not quite. If you look in the past, the when the American Dollar is rising agianst world currencies the Canadian Dollar is also rising. When the American Dollar is falling, so is the Canadian Dollar. And the Canadian Dollar is always going in opposte trends agianst the American Dollar.

This time around however, the Canadian Dollar is rising against the American Currency and it is also rising against other foreign currencies. So there has been a change in the Canadian Economy, we are no longer as dependant on the American Economy. To me it appears that unlike before, we now have multiple economic engines. The new engines are not as dependent on the American Economy. Oil is just one example, there are a few more such as Information/Tech.

Again, nobody knows where the Canadian dollar is going but we can all speculate. Companies lose money when they speculate so they would rather cost in currency fluctuations.

I am just listening to economist at the moment. They haven't really ben to bad at forcasting.

After looking at the data, I peg the CAD at closer to 89 cents at the announcement but its splitting hairs really.

We are such a small part of Apple's market that I doubt they are interested in constantly changing prices to match the currency.

Yeah I was the one who miscalculated earlier. My bad. But I did have my value of 83 dollar right.

Many things in Europe are much more expensive even with Value Added Taxes added in. The UK is not called Treasure Island for nothing.

I was just noting that it's not as bad as many assume. VAT has a huge impact in prices. But the other problem is also the shipment problems and general higher cost of doing business in Europe. But they do reap some benefits, they don’t get Hyper Inflated Economies like the one we have in Alberta atm.

 

[flopticalcube]

Not quite. If you look in the past, the when the American Dollar is rising agianst world currencies the Canadian Dollar is also rising. When the American Dollar is falling, so is the Canadian Dollar. And the Canadian Dollar is always going in opposte trends agianst the American Dollar.

This time around however, the Canadian Dollar is rising against the American Currency and it is also rising against other foreign currencies. So there has been a change in the Canadian Economy, we are no longer as dependant on the American Economy. To me it appears that unlike before, we now have multiple economic engines. The new engines are not as dependent on the American Economy. Oil is just one example, there are a few more such as Information/Tech.

Yes. In the past. In the past (20 years) we were in a commodities bear market. Now we are in a commodities bull market. It IS different this time but we are still heavily reliant on the US economy.

CIA Factbook (May 2007):

Exports account for roughly a third of GDP. Canada enjoys a substantial trade surplus with its principal trading partner, the US, which absorbs about 85% of Canadian exports.

I am just listening to economist at the moment. They haven't really ben to bad at forcasting.

The Economist has been slightly better than random chance at predicting the direction or outcome of anything. Remember, they thought going to war in Iraq was a good idea. Oops!

The last time they did a currency forecast, using data from JPMorgan Chase (my old employer ), they pegged the Canadian dollar to go to CAD1.23 against the US when it was at about 1.12 at the time.

Yeah I was the one who miscalculated earlier. My bad. But I did have my value of 83 dollar right.

And considering Apple ships free across this great empty land which has a population density (and thus market) far lower than the US, I think that is probably fair dinkum.

I was just noting that it's not as bad as many assume. VAT has a huge impact in prices. But the other problem is also the shipment problems and general higher cost of doing business in Europe. But they do reap some benefits, they don’t get Hyper Inflated Economies like the one we have in Alberta atm.

Well, they did in the past. Germany and Hungary in the past have been notorious for inflation but not because of growth. I lived in Britain for 10 years and can personally avow that the costs of many goods and services is significantly higher than in North America and in America in particular. VAT does play a role as does their distance to manufacturing hotspots like China but it is also a case of "charge what the market will bear".

 

[dejo]

So I ask you, do you think Apple might reduce their prices for Canadians in the next few days/weeks? And Should I hold my Macbook order until the prices decline?

That's the price you have to pay to get relatively cheaper 99c CDN iTunes Store purchases.

 

[CanadianGrit]

Yes. In the past. In the past (20 years) we were in a commodities bear market. Now we are in a commodities bull market. It IS different this time but we are still heavily reliant on the US economy.

Let me repharse, we don't seem to have the same ripple effects anymore. We don't need them as much for the health of our economy. What I am thinking is that oil is a comoditiy which is now a need (not a want) for Suburbanites (aka the average middle class), so people will buy it in a moderate recession (obviously not in a depression on a severe recession; but I don't see on of those in the near future).

So I believe as long as the oil prices remain high, the good times will keep rolling for Canada.

 

[spork183]

So I ask you, do you think Apple might reduce their prices for Canadians in the next few days/weeks? And Should I hold my Macbook order until the prices decline?

Newsflash: Apple is reducing the price of computers sold to Canada. They are doing this in conjunction with the oil companies that have reduced gas prices in Canada due to the strong Canadian Dollar. In no time, other major industries will follow suit...

Disclaimer: The above statements contain blatant falsehoods and salacious innuendo. At no time, now, or in the future, will Apple or the oil companies offer exclusive Canadian price drops based on currency valuations. Thank you for participating in this episode of Welcome to Canada, You're screwed...

 

[Chundles]

Apple last week lowered the price of iPods and MacBooks in Australia - mainly due to the weak US$ meaning a higher AUD$.

iPods went from $380/$499 to $349/$479
nanos went from $219/$299/$380 to $199/$279/$349
shuffle went from $119 to $109

MacBooks went from $1749/$2099/$2399 to $1599/$1899/$2199 and they upgraded the specs.

Now they really need to change the MBP because you're paying $3199 for the base model which has a smaller HDD and slower Superdrive than the $2199 MacBook.

 

[island]

Go with the refurbished for the best price.

 

[roman david]

At least yr not British; I'm planning on buying a black MacBook which costs £949, or $1,879, which means that I'd be paying $380 less if I lived in the US.

Yowsers. I think this is because the pound has also been doing ridiculously well against the dollar with rates currently around $1.97 to £1, as well as the 17.5% VAT we have over here. I'm waiting until I go to university (being a PC user, this is hard) to get mine, though - the student discount takes away about a hundred of those dollars; I'll have to consider it a hefty black/switcher tax...

 

[notjustjay]

If and when our dollars go to par, I see myself taking a road trip to the US to pick up a MacBook Pro.

Hmm, actually, I already have a road trip on the cards to North Carolina in mid November. Assuming currency rate trends and the Leopard release timeframes don't change, that might be the perfect opportunity...